Archive for July, 2018

To understand the differences between factoring and credit insurance, it is first necessary to recall the characteristics of each of these products.

Factoring is a solution that includes three services: the financing of invoices between 24 and 48h in exchange for the debts issued / the management of customer accounts by customer and by invoice, as well as the management of the collections and the recovery of debt / the guarantee against unpaid bills. While credit insurance only guarantees sales to customers and does not offer financing. This solution is based on several services: prevention and surveillance of all customers / Tracking bad debts / Recovery of debts / In case of unpaid payments of compensation. The next options for the factoring loans are right here.

What are the main differences between factoring and credit insurance?

Even though Factoring incorporates a credit insurance solution, it is primarily a tool for obtaining cash. The main objective is to finance the company while the credit insurance only guarantees the risk of unpaid. These two solutions are different but complementary. Factoring, in order to finance invoices, needs to secure receivables. The factoring agency can do this, either internally or externally, by signing a contract with a credit insurance company. For the company, credit insurance secures its customer position through the monitoring and assessment of delinquency risks, while factoring finances the need for cash.

The advantages and disadvantages of factoring

Factoring provides the company with an additional financial source to supply its treasury independently to its bank. It can then develop by releasing customer reminders and cash requirements. Another advantage of factoring is that invoices are 100% covered; while with credit insurance invoices are covered up to a maximum of 90% of the amount of the unpaid invoice.

However, it is a solution that remains unsuited to low volumes of accounts receivable, on the other hand, its price remains high especially if the company has many bills with a very small amount.

Moreover, factoring is not the best solution in the long term and does not meet the requirements of certain sectors of activity. Finally, factoring can disrupt business relationships because the customer is aware of the factoring.

The advantages and disadvantages of credit insurance Credit

Insurance offers a discreet solution for monitoring and selecting its customers, whereas with factoring, the customer is informed that his or her claim has been transferred. With credit insurance, it is possible to constantly monitor the financial health of its existing customers and to explore serenely. Among other things, it is possible to access attractive rates for the recovery of customers who are not insured, while maintaining control of the recovery of its customers. Finally, credit insurance tends to reassure bankers because the client is guaranteed.

This calls into question the mode of production, but also all processes and relationships upstream. Purchasing, supply, transportation, as many phases of logistics that the company must rethink to make a successful transition. So what is the true importance of supply chain management, and how to optimize it?

Supply chain management, the key element of logistics optimization

Reference is made here to improving coordination of the supply chain. It is a question of forecasting actions as close as possible to needs, so as not to waste resources. If this waste can take many forms, it can be summed up in one word: waiting. A workshop waiting for the raw material to start production is time and money lost. In the other direction, the raw material that is waiting represents unnecessary storage costs. With the truck loads option the results are perfect now.

To optimize the supply chain and counter these losses, the most effective measure is the implementation of management processes. The question you need to ask yourself is: “How do I organize my flows to make them more fluid and reduce the wait between each step? “. You know your company, so you know the answer.

But the most complex, a priori, is to formalize it in a process. Yet this is how you can guarantee the quality of your actions over time. To continually improve your processes, it is important to think the method regularly .Because if you expect a loss of efficiency to question the process, it will surely be too late.

Keys of Logistics Optimization

Formalize your logistics strategy

The management of your supply chain must transcribe your strategy to achieve your goals. For that, each member of your team must have these goals in mind. We must formalize them, but also explain how to achieve them. This is an important prerequisite.

Assign this function to a supply chain manager to optimize it

2 out of 5 companies experienced at least one logistic break in the past year. And yet, the same proportion does not intend to recruit manage the supply chain. A paradox when we know that some professional training is their specialty. Especially since an optimized supply chain can have direct positive effects on cash flow.

Master the logistics processes to coordinate them

Logistics optimization involves the advanced understanding of the supply chain processes to adjust them. You will create a standard of quality in operation. A process perfectly mastered by the manager and his teams can also increase agility, and thus better manage emergencies .

Do you know why summer is our favourite season in Majorca? Because summer is fun, it’s beach, it’s hanging out in the Mediterranean and feeling that there’s nothing better in the world. Summer is culture, passion, festivals and traditional celebrations like the famous Majorcan festivals, fun parties for the whole family that take place throughout the summer on the island when you can not only get to know the customs, crafts and typical foods, but you can also immerse yourself in a truly festive atmosphere full of music, exhibitions, shows, art and activities for children and adults. In Sol Hotels we’d like to invite you to get to know the island‘s most typical festivals in a full tour of its beautiful towns.

  • Esporles is one of the most famous Majorcan festivals that is becoming more popular every year. This festival brings together a large number of people from Palma and the surrounding villages and is the first to be held, approximately between the end of June and the beginning of July.
  • Sa Rapita. Who doesn’t want a party on the beach? Sa Rápita is known for being one of the most exclusive areas of southern Majorca and proof of this is the great number of people who flock there to enjoy the summer months. The festivals in this area are an example of Majorcan folklore with attractions and activities for all ages.
  • Binissalem. In this town you can try authentic Majorcan wine, thanks to all the varieties grown in the area. The festivities of Binissalem, held during the months of August and September, revolve around wine tasting accompanied by music and shows.
  • Valldemossa. Or, the so-called, ‘artdemossa’, this beautiful town is transformed into an art show in which different photographers, painters and sculptors come together in mid July, for a weekend full of culture and craft beer.
  • Felanitx. This is one of the most fun filled festivals on the island, where you can enjoy concerts, performances, swing and jazz dances and the best Majorcan foods. Held on the last weekend in August, this party is just right for saying goodbye to a perfect summer in Majorca.

Sol Resorts would like to invite you to stay at our hotels in Majorca. Come and enjoy the best family fun in our Sol Kathmandu Park, relax in an adults-only environment at Sol Beach House and dance like never before at our Sol House The Studio. We will be waiting for you!


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