Invoice factoring can have a significant impact on the working capital finance of mid-market companies. Mid-market companies, which are defined as businesses with annual revenues between EUR10 million and EUR1 billion, often face challenges in managing their cash flow and maintaining adequate working capital to support their operations.
Invoice factoring can help mid-market companies by providing an immediate source of cash from their unpaid invoices. This can be especially important for companies that have long payment terms with their customers or that operate in industries with seasonal cash flow fluctuations.
The benefits of invoice factoring for mid-market companies include:
- Improved cash flow: By converting their unpaid invoices into cash, mid-market companies can improve their cash flow and avoid cash shortages that could otherwise hinder their ability to grow and invest in their business.
- Increased flexibility: Invoice factoring can provide mid-market companies with the flexibility to take on new business opportunities or invest in new projects that might otherwise be limited by their cash flow.
- Enhanced creditworthiness: By having access to immediate cash from their invoices, mid-market companies can improve their creditworthiness and enhance their ability to obtain financing from traditional lenders.
In summary, invoice factoring can be a valuable tool for mid-market companies looking to improve their working capital finance and manage their cash flow.
Qube Financing developed a very advanced application of invoice factoring and with Qube added value:
- Qube Financing (and its affiliates) have developed the Qube platform, supported by its proprietary PRI® inside infrastructure, front-end to back-end fully automated receivables financing platform (“Qube Platform”), as one of the earlier Fintech 3.0 initiatives in the market and is fully equipped to be the winning platform of the third wave.
- This Qube Platform is fully operational and has been fully adopted by institutional investors, including the standardized procedures, ‘modus operandi’ and underwriting process steps & criteria.
- Qube targets European SME and Mid Market Corporates with a fully standardized approach as well as tailored solutions for multinationals, predefined underwriting criteria that are agreed with institutional investors and supported by PRI® inside and the add-on credit & collection management application PRI® CrediSoft and PRI® Supply Chain.
- Offering consolidated multi jurisdictions multi operating companies fully automated working capital financing solutions based on invoiced turnover, whereby PRI® inside directly interfaces with the Corporate's ERP systems, the Connection.
- The Qube Platform benefits from a modular design and standardized processes and legal infrastructure.
- US version of PRI® infrastructure can be calibrated for US time zone and jurisdiction.