Commercial Finance

Would you rather not wait for customers to pay their invoices? With receivables financing, also known as factoring, we finance approximately 90% of the invoiced amount. This allows you to use the money right away to continue investing in your business.

Do you have a large amount of inventory in storage? As long as it’s there, you are not making any money on it. Our inventory financing changes this. We finance up to 70% of your paid inventory so that you can use the money right away. This allows you to benefit from bulk discounts and respond quickly to changes in the market.

Good to know: inventory financing is only available in combination with receivables financing and for companies with a minimum turnover of € 10 million.

We can take over your accounts receivable management. Partially, 30 or 60 days after the due date, or fully, from day 0. This means you never have to send payment reminders again and your receivables position is always up to date, saving you time and personnel costs.

Would you like even more certainty? Add transfer of receivables risk to your financing, and we will also assume the risk of non payment or bankruptcy. If a customer goes bankrupt, you will receive 100% of the insured amount.

You qualify for Commercial Finance if your company meets the following conditions:

• Minimum turnover of € 8 million or a structural credit requirement of € 1 million or more
• Registered with the Chamber of Commerce for at least two years
• Active in Business to Business (B2B) • You have a diversified receivables [CR3.1]portfolio
• Your delivery or service has already been completed and invoicing takes place afterwards
• Term invoicing or advance invoicing does not qualify for receivables financing
• Your inventory consists of finished products that have already been paid for

For receivables financing you pay:

• a variable base interest rate based on one month Euribor. 
• an interest margin for receivables and inventory financing between 1.5% and 3.5%.
• a turnover commission. This is often a fixed monthly amount.
• a commitment fee on the difference between your maximum financing and the financing you use, ranging from 0.25% to 1% per year. We calculate the commitment fee daily and charge it monthly.

Commercial Finance has a term of at least six months. On average, our clients use it for five years. We determine the term together during the financing consultation. For Commercial Finance, you can choose between two types of contract:

• a fixed term contract
• an open ended contract with a six-month notice period

Commercial Finance provides you with an advance of up to 90% on outstanding receivables. This increases your financing limit and structurally improves your liquidity.

• You do not need to wait until the debtor pays; you have immediate access to financing as soon as we receive the invoice.
• Your outstanding invoices are immediately financed up to 90%. • Your financing moves in line with your receivables position and turnover.
• With inventory financing, you can finance up to 70% of your inventory immediately.
• With accounts receivable management, you have a lower risk of long outstanding invoices and non payment.
• With the transfer of receivables risk, you are protected against non payment and bankruptcy.

This is a fixed amount. The exact amount depends on your financing volume and the services you choose. We discuss these costs with you in advance.

The interest consists of the base interest rate, the interest margin and the commitment fee. In addition, you pay a turnover commission.

To monitor your receivables, payables and inventory, it is important that we can follow information on these on a daily or weekly basis. This is why we ask you to link your accounting software to our Client Portal.

Your debtors continue to pay into your existing ABN AMRO account[CR4.1]. If you do not yet have a business account with us, we will open a new account for you.

As with a regular loan, you provide collateral for Commercial Finance. Which collateral you provide depends on the services you choose. In all cases, we establish a first ranking pledge on your receivables.

For receivables financing up to € 5 million, we do not require additional collateral, including personal guarantees.

To ensure a meaningful discussion, we need the following documents at least 48 hours before the meeting:

• an organisational chart of the legal structure
• the most recent final annual figures
• an open items list of receivables including ageing analysis
• an open items list of payables including ageing analysis