El Factoring as a Financial Tool for Managing Seasonal Fluctuations in Trucking public is a recommended solution to compensate for the usual late payments of public administrations.
Working with them offers you, as a company, great advantages. Especially the possibility of accessing large contracts and obtaining an image of quality and reliability in the market.
The counterpart is charging in the long term, which endangers your accounting and your treasury.
1. How does the public administration usually pay its suppliers?
The administration payments in Spain they are regulated by Law 9/2017, of November 8, on Public Sector Contracts. According to this regulation, the maximum term is:
– 30 days to approve the certifications and deliveries included in the contract.
– 30 days to pay after initial acceptance.
Therefore, payment can be extended up to 60 days. However, in practice, the average payment term from the administration exceeds 61 days because, unfortunately, there are organizations that are delayed longer than what is legally established.
Another factor that complicates this situation is that public contracts are often complex and lengthy projects that They require investments prior to their realization. For example, buy raw materials and subcontract collaborators. Therefore, frequently, not only do you have to deal with this late payments, but meanwhile the correct development of the project requires continuous investments for collection.
The positive part is that, in most cases, the final payment is guaranteed. Contrary to what happens in the private sector, the risk of default is practically nil. What constitutes an advantage that encourages, to collaborate professionally with these institutions.
Working with the public sector means, therefore, assume that administration payments will take time to arrive. Consequently, if you work on a recurring basis with these administrations, you will need to adopt solutions that protect and safeguard the liquidity of your business. He Factoring as a Financial Tool for Managing Seasonal Fluctuations in Trucking public is, today, the best of them.
2. Factoring public, the solution to this problem
El late payments requires your company to enjoy outstanding economic health or, failing that, look for alternative financing formulas.
Also, keep in mind that while your business resources are focused on a large public contract, dedication to other projects decreases. In other words, there will be a logical Stand by regarding the collection of other services rendered.
Consequently, working with administrations sometimes involves:
– Charge later.
– Advance investments.
– Temporarily reduce the income received.
– Facing liquidity and treasury tensions.
3. What does the Factoring as a Financial Tool for Managing Seasonal Fluctuations in Trucking public
To prevent the delay in the administration payments drag your business activity, you must find a agile and affordable financing. In general terms, the ideal is to advance the collection of these pending invoices from public institutions before their due date.
If you find yourself in this situation, the Factoring as a Financial Tool for Managing Seasonal Fluctuations in Trucking is the financial tool you need. It will permit you have immediate liquidity in your business.
What is this service about?
A contract is signed by which the issued invoices are transferred and the entity that buys them pays a lower value, thus obtaining an economic return.
In other words, You give up the invoices pending collection to obtain money immediately. In exchange, you lose a small percentage of its value, as is the case with any financing service.
El Factoring as a Financial Tool for Managing Seasonal Fluctuations in Trucking publicSpecifically, it is focused on anticipate payment invoices from the administration. In this way, you will improve your liquidity ratios and save yourself trouble, tensions and treasury imbalances.
Its hiring entails small financial costs and few contractual requirements, which is why it is an agile, profitable and timely system. In addition, this liquidity is achieved with its own assets, without resorting to borrowing. Therefore, it does not increase your passive.
In short, the Factoring as a Financial Tool for Managing Seasonal Fluctuations in Trucking public is an excellent resource for coping with and compensating for late payments of public administrations.
Do you want to enjoy it in the best conditions?
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