Optimising cashflow
Microcredit and factoring, effective management of cashflow, supplier credit and customer payment terms is crucial to optimal liquidity. This is a crucial issue for any business, especially when it is in a growth phase and working capital requirements are increasing rapidly.
Microcredit
Microcredit is an alternative to traditional bank credit, involving the granting of small loans to entrepreneurs or artisans who cannot access traditional bank loans.
MicroStart, created in 2010 by Adie, BNP Paribas Fortis and the European Investment Fund, is made up of a social cooperative and a non-profit association. The organisation provides small loans to people wishing to set up a small business or expand a business they have already set up. In addition, microStart supports its customers free of charge by giving them access to a whole range of free services and advice.
Factoring
Factoring is a type of debt collection that involves subcontracting debt management to a specialised credit institution: the factor. Factoring protects a company against the risk of non-payment by debtors.
Many banks have their own factoring service. BNP Paribas Fortis Factor is Belgium's leading factoring company. However, bank factoring subsidiaries are often not suitable for smaller companies.
However, factoring is in the process of being democratised. Edebex operates a digital platform that brings together investors with cash who are looking for a return, and SMEs or micro-enterprises that are short of cash but have unpaid invoices.