Activity/organization/distribution structure

Factoring is an invoice financing and receivables management solution for all businesses selling B2B, regardless of their size or industry. Designed to meet three fundamental customer needs, these services enable customers to:

  • obtain finance by transferring invoices to the factor and receiving payment early in return;
  • shield themselves against non-payment by customers through insolvency (default) cover;
  • avoid using internal resources to chase debts and match payments to invoices by outsourcing this task to the factor.

This principle is simple: the company assigns its receivables to the factor via a subrogation or Dailly agreement, whereby the factor becomes the owner of the receivables. In return, the factor pays some or all of the invoices in advance of their normal payment date and collects payment from the debtor. Factoring offers a modular solution, as businesses can choose to factor receivables from a single customer or multiple customers, or to use only some of the services on offer.

Under sales ledger management solutions, for instance, the factor may authorize the company to oversee some or all of the services on its behalf (recovery, collection).

  • Crédit Mutuel Factoring sells its solutions (factoring and invoice financing) on behalf of the Crédit Mutuel and CIC networks;
  • Factofrance sells its products directly, via a dedicated sales team and a network of business introducers such as credit insurance brokers, financial advisors, accountants, investment funds, etc.

In Germany, factoring activities are carried out by TARGOBANK under the Targo Commercial Finance brand.

Products/services proposed

  • The product range covers traditional factoring, recovery or sales ledger management, disclosed or undisclosed factoring, reverse factoring, invoice financing, inventory financing and off-balance sheet arrangements.
  • The range of services includes the receivables finance, supply chain finance, insolvency risk cover, invoice recovery and collection.
  • Scope of intervention: France and outside France (exports to more than 100 countries), support for foreign subsidiaries under international programs (Europe, North America, Asia, Australia).
  • Client base: professionals and enterprises of all sizes located in France and outside France.

Key figures in 2020

A leader in factoring in France

75.4 billion in receivables purchased

(-8.7% versus 2019)

More than 850 employees

12,000 professional and business clients in France

Crédit Mutuel Factoring : www.creditmutuel-factoring.eu

Factofrance : www.factofrance.com

TARGO Factoring : www.targobank.de/firmenkunden/factoring/index.html