Alter5

Working capital finance

Factoring: advancing customer receivables

  • Share of customer invoices eligible for advance
  • Recourse or non-recourse in the event of customer default
  • Documentation required

Assignment of customer invoices to a financial institution, which advances their amount and handles collection.

Propose a transactionSee the process ↓

Alter5's role. The financial institution grants the facility, subject to its own credit analysis, approval and contractual terms. Alter5 neither provides financing nor manages collections.

The process

Four steps, from request to response

No invoices or accounts are required to submit the request.

  1. STEP 01

    Transaction amount

    The form opens with factoring preselected. The amount is entered in millions of euros; an approximate figure is enough.

  2. STEP 02

    A two-line description

    What is to be financed, its current status and the source of repayment. For factoring, the volume invoiced to customers and the profile of those customers.

    No confidential data at this stage.

  3. STEP 03

    Contact email

    A contact email address is provided, used solely to reply to the request.

  4. STEP 04

    The team's response

    The Alter5 team analyses the information and replies to the email address provided.

    The facility is granted by the financial institution after its own analysis.

The instrument

Recourse and non-recourse factoring

The company assigns the invoices issued to its customers to a financial institution, which advances their amount and manages their collection. The difference between the two forms is who bears the risk of customer non-payment.

With recourse

The assigning company remains liable to the institution if the customer does not pay the invoice when due.

Without recourse

The institution bears the insolvency risk of the customers it accepts, within the limit it sets for each one and on the terms of the contract.

Non-recourse cover depends on the contract and on the customers accepted. It generally does not extend to commercial disputes, non-conforming invoices or breaches by the assigning company.

The accounting treatment depends on the form of factoring, the contract and the applicable accounting framework. It is a matter for the company and its auditor.

Confidential
The email address and the transaction description are not shared with third parties.
Reviewed by the team
The Alter5 team analyses every transaction it receives.
No upfront cost
A fee is payable only if the transaction closes.
European Investment Fund
Alter5 works with the European Investment Fund on several of its programmes under the European Commission's InvestEU programme.

Next step

Proposing a transaction

An approximate amount and a two-line description. No invoices or accounts required at this stage.

The request starts with the amount

Factoring is preselected: three screens and a contact email address.

Propose a transaction

Term financing for investment, growth or refinancing: Corporate financing

Alter5 does not provide financing or manage collections. Factoring transactions are entered into between the company and the financial institution, which decides whether to grant them in accordance with its own criteria. The information on this page is general in nature and does not constitute accounting, tax or legal advice.