There are several working capital solutions that SMEs can consider based on their debtor exposure, or the amount of money they are owed by their customers. These solutions can help SMEs manage their cash flow and meet their short-term financial obligations.
- Invoice financing: If an SME has a large number of outstanding invoices, it can consider invoice financing. This involves selling the invoices to a third party at a discounted rate in exchange for immediate payment. This can provide the SME with quick access to cash and help improve its cash flow.
- Factoring: Similar to invoice financing, factoring involves selling accounts receivable to a third party at a discounted rate in exchange for immediate payment. This can be a useful solution for SMEs with a large debtor exposure.
- Lines of credit: An SME with a high debtor exposure may also consider applying for a line of credit from a bank or other financial institution. A line of credit allows a business to borrow money up to a certain limit as needed and make regular payments to repay the borrowed amount.
- Short-term loans: SMEs with a high debtor exposure can also consider taking out a short-term loan to meet their working capital needs. These loans are usually for a period of one year or less and have relatively lower interest rates compared to long-term loans.
It's important for SMEs to carefully evaluate their options and choose the solution that best fits their needs and financial situation. It may be helpful to consult with a financial advisor or accountant to determine the best course of action.
Qube Account Receivables Finance Added Value
PRI® inside Platform
The fully automated solution for account receivables (or AR) financing by PRI® inside offers:
- Daily (re)purchase of invoices
- Daily portfolio analysis and portfolio review
- Daily notification of purchased receivables
- Daily settlement of credit-notes and uncollectable invoices
- Daily liquidity calculations
- Full ‘track and trace’ solution, all required steps are logged and documented
- Fully automated data-exchange after one-off implementation of data-exchange protocol
- Daily funding and settlement towards participating companies & institutions
- Fully integrated risk, operational and legal framework
Set-up for daily settlement routine is defined on automated interface between client’s financial and operational systems and Qube’s PRI® inside. Interface will be implemented and supported by Qube Servicing.
After go-live Qube’s clients will have access to all daily settlement reports with automated instructions for payments if required, resulting in a very limited work-load for clients on an ongoing basis.
In addition, PRI® CrediSoft is a proprietary receivables credit & collection add-on application supporting credit management processes serviced by Qube Servicing. The application manages and integrates collection workflows and tasks and is fully integrated with PRI® inside.
PRI® inside has been developed based on the in-depth experience with receivables finance with the objective to have a fully front-to-backend automated receivables finance platform based on historic and actual data which to provide full insight & transparency which will be evidenced by demo on request.