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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!

The factoring institute assumes the customer’s accounts receivable by concluding a factoring contract with the factoring customer. In it, the factoring customer undertakes to sell his claims to the factoring institute and transfer them to him. In return, the factoring institute undertakes to buy and settle the receivables from the factoring customer. The contract regulates either the assumption of all demands or demands on certain customer groups. The contract usually refers to claims that arise after conclusion of the contract but also existing claims can be included.

A factoring agreement is a longer-term, the maturity is at least two years. In practice, even contract periods of four to five years are the rule.

Credit check and limit allocation

Before the conclusion of the factoring contract and during the entire contract period, the factoring institute checks the creditworthiness of the debtors at intervals. Based on the result of the audit, the factoring institute awards so-called purchase or customer limits up to the amount of which it bears the default risk of a debtor. For exposures exceeding the limit, the factoring customer bears the risk himself.

Purchase of receivables

The basis for the purchase of the receivables from the Receivables Institute is the customer’s invoice to the debtor. It first checks the invoice data and the invoice amount. The processing takes place in most cases by electronic means. The required invoice data are transmitted electronically to the factoring institute. This saves not only costs but also time. Regarding the factoring of receivables you will be able to have the best options now.

If the invoice amounts are within the limits of the respective debtor, the factoring institute buys the receivables. If not, the receivables are placed in a waiting position until a purchase is possible again due to payments received from the respective debtors.

Payment of the purchase price

The time of payment of the price of the purchased receivables depends on the contractual agreements between factoring institute and factoring customer. Mostly an immediate payment is agreed. The factoring institute will pay as soon as the invoice has been received and checked. It only takes longer for invoices for debtors who have not yet been credit-tested, because a check must first be made and a limit set.

The purchase price will be paid either by crediting the customer’s billing account or by transferring it to the customer’s account at the customer’s bank. The factoring institute retains 10 to 20 percent of the amount upon payment of the claim price in order to compensate for any discounts due to defects, complaints, discounts, returns, etc. This amount is called security deposit.

Upon settlement of the claim by the debtor or on maturity of the claim, the security deposit is either offset or paid to the factoring customers.

 

Have you ever had somebody come to your holiday destination, asking to have a look around before confirming their booking? You may even have been that person yourself somewhere before, so you’ll know how important it is to build up a good first impression by letting guests see what you have to offer. And thanks to modern video production technology, you can do this right on your website.

What is a virtual tour?

Much like the street view on Google Maps, which allows you to ‘drive’ down streets right on your screen, a virtual tour allows guests to ‘walk’ around your facilities and see what’s on offer. Best of all, this can be done from the comfort of their homes, offices or anywhere else on their smartphones.

How does this benefit your business?

In the hospitality and entertainment industries, time is money. And a virtual tour feature on your website saves you the time you would have spent showing guests around in person. They can look around in their own time without needing a guide.

Also, you will have access to a wider pool of potential guests. All those people who are not booking with you because they do not have the time or live too far away to come for a tour can now look around as well. That’s a whole new group of potential customers that can convert into real business.

How do you set up a virtual tour?

It’s as easy as using the services of a professional video recording company like Megaphone Media. They have the necessary video production experience and equipment to handle this project for you.

You can simply have them come to your venue with the necessary equipment, and they will take care of everything from there. This process will entail photographing the necessary areas with high quality 360° DSLR cameras, so that users can look around and get the full experience your venue has to offer before actually arriving.

Does the tour just use images?

While many virtual tours just use static imagery, some innovative video recording companies are also adding in multimedia. If you have a wedding chapel, you can include a video of a wedding service there, sound clips of birds chirping in the gardens, and various other features that displaythe things that make your venue special.

Give your holiday destination a modern edge!

The Internet is a massive resource, so now is the time to make it work for you! Contact a video production company today and show the world just how great your venue is, from every angle.

Scratch off World map poster

 

A truly fantastic family holiday adventure in today’s tech-centric world would be an experience that takes you away from all the hubbub of everyday life. And what better way is there to do this than to take a horse riding tour, out in nature? Best of all, you just need the correct riding gear to make this experience idyllic while ensuring your comfort and safety.

Comfortable horse riding pants

You want to be comfortable while enjoying your break away, and the correct pants for horse riding are essential to this. After all, your legs are going to be in contact with the horse in some way, at all times.

The best example of ideal horse riding pants would be Jodhpurs. These are trousers specifically made for horse riding, originating in Jodhpur, India in the 1890s. These pants fit loosely around your middle and hips to let you move about freely and comfortably, while also fitting more tightly down the calf to your ankle. This tighter section protects your legs against chafing from constant contact with the horse.

Protective riding gear

Now that you’ve got your comfortable pants, you naturally want to look after them. A sturdy pair of chaps is perfect for this, as they provide cover for both your pants and the tops of your boots against mud, dust andeven scrapes you would otherwise get while going past bushes and other vegetation.

Your own protection is also important, which is why gloves are a great idea. Just like your pants, your hands could easily come into contact with passing bushes and branches on some trails, and cutting or scratching your hands could cause you to pull on the rains or swat them about in a way that would send the wrong signal to the horse. Also, if you happen to fall, you want to be sure that your hands are protected against stones, grit, and whatever else might be waiting on the ground.

Riding caps

You might be wondering why riding caps are mentioned separately. The reason is that this piece of riding gear is too important to not stand out on its own.

Head injuries are the most dangerous injuries riders face, and they can happen faster than any of us realise. So protecting your noggin is essential, and riding caps help you do just that. Make sure you buy yourself a good quality cap that is sturdy and fits well.

For all your horse riding clothing needs, go to a reputable equine goods supplier like Trident Saddlery. Get the best out of your next family horseback adventure.

A truly fantastic family holiday adventure in today’s tech-centric world would be an experience that takes you away from all the hubbub of everyday life. And what better way is there to do this than to take a horse riding tour, out in nature? Best of all, you just need the correct riding gear to make this experience idyllic while ensuring your comfort and safety.

Comfortable horse riding pants

You want to be comfortable while enjoying your break away, and the correct pants for horse riding are essential to this. After all, your legs are going to be in contact with the horse in some way, at all times.

The best example of ideal horse riding pants would be Jodhpurs. These are trousers specifically made for horse riding, originating in Jodhpur, India in the 1890s. These pants fit loosely around your middle and hips to let you move about freely and comfortably, while also fitting more tightly down the calf to your ankle. This tighter section protects your legs against chafing from constant contact with the horse.

Protective riding gear

Now that you’ve got your comfortable pants, you naturally want to look after them. A sturdy pair of chaps is perfect for this, as they provide cover for both your pants and the tops of your boots against mud, dust andeven scrapes you would otherwise get while going past bushes and other vegetation.

Your own protection is also important, which is why gloves are a great idea. Just like your pants, your hands could easily come into contact with passing bushes and branches on some trails, and cutting or scratching your hands could cause you to pull on the rains or swat them about in a way that would send the wrong signal to the horse. Also, if you happen to fall, you want to be sure that your hands are protected against stones, grit, and whatever else might be waiting on the ground.

Riding caps

You might be wondering why riding caps are mentioned separately. The reason is that this piece of riding gear is too important to not stand out on its own.

Head injuries are the most dangerous injuries riders face, and they can happen faster than any of us realise. So protecting your noggin is essential, and riding caps help you do just that. Make sure you buy yourself a good quality cap that is sturdy and fits well.

For all your horse riding clothing needs, go to a reputable equine goods supplier like Trident Saddlery. Get the best out of your next family horseback adventure.

 

Getting a loan for the development of small business in our country is not easy. Credit institutions are wary of issuing loans to small businesses. According to statistics, only one application out of three can be expected to respond positively. As for the issue of large sums, the picture here is even worse. Only 8% of the number of approved loans falls on loans of large amounts. This situation hinders the development of small business in the country and requires a solution.

  • Getting credit for small businesses is problematic in every corner of the country. An unstable economic situation is the main reason for the refusal. Making a consumer loan is not a way out of this situation, as it is unlikely to be enough for doing business.

It is important for an entrepreneur to obtain credit from a credit institution. Financial reliability and solvency are the main factors affecting the decision to grant a loan to small businesses. The banking organization needs to prove that the activity is carried out regularly and there are no prerequisites for its curtailment. Any credit institution only trusts information that has been documented, so it is worth preparing documentation on monthly business expenses. The use of the factoring invoices is now rising up gradually.

What are the programs for small business lending?

For small businesses, a whole range of programs has been developed that meet a variety of objectives – from covering cash gaps to acquiring equipment, office and storage facilities or special equipment. Each bank proposal is selected individually for a specific case. The most common credit programs are:

  • leasing with the right to repurchase in the long term;
  • overdraft – crediting of a businessman for a sum greater than his balance on the current account;
  • factoring;
  • Financing of business when providing a business plan and clearly justifying its profitability.

Almost all programs for small businesses are of a targeted nature. They are designed to promote the development of activities, the expansion of production, the release of new products, etc. It should be remembered that the credit institution monitors the expenditure of each ruble of loan funds. Any use of borrowed money for personal purposes that do not correspond to those stated in the business plan leads to imposition of penalties and the entry of a businessman in the black list.

 

Transport covers the total of transport, storage, transshipment and information activities when moving goods or products from origin to destination and consists of:

Transport: the part of transport activities where the goods or products are moved elsewhere by means of a means of transport;

Storage: the part of transport activities where the goods or products are at rest;

Transshipment: the part of the transport activities where the goods or products are transferred from one state within the system to another,

Transport information: the documentation required for sending transport activities.

A good international transport policy for export must be more than just transporting the goods on time from the factory to the destination. An efficient transport policy goes further, also has control over, for example, purchasing, production, stock, information exchange.

In short: control of the total flow of goods, from raw material to end product, from producer to end-user. That is why international transport can often be mentioned in one breath with the term ‘physical distribution management’.

When choosing a certain mode of transport, the exporter must not lose sight of one thing. Transport is a service product that cannot always be delivered from stock. As a result, the utilization rate of transport resources and capacity utilization play an important role in the operational management of transport companies. You can easily get the service of Load boards for trucks from a well-established company in the market if you go for little research.

The choice of means of transport must be customer-oriented. Often, for example, road transport comes closest to the wishes of the customer, since also in the other transport modes the road is used first to bring the goods to a station, port, airport, etc.; these combinations cannot always be checked by all parties involved, so not always reliable. The transportation options that the exporter will use depend on, among other things, the type of goods. A distinction can be made between piece goods and mass goods. Piece goods are usually transported in packaged units, while bulk goods, for example, will be transported as a wagon load. An exporter therefore often has to make arrangements well in advance with the transport company about when and where the goods have to be transported. Moreover, he often has to specify to the carrier how much he intends to export. These factors in turn have consequences for the business operations of the export company.

Simply put, factoring wants to say; pre-financing invoices. For companies that require cash flow, factoring can offer a solution for various reasons. As an example, it allows companies to hand over their credit management to a factoring company. This reduces the need for companies to hire debtors. In addition, factoring gives direct access to the money that is outstanding in invoices from clients without waiting for the payment term of 30, 60 or sometimes 90 days.

Factoring differs in different ways from bank loans and other forms of financing. One of the main differences is that factoring can be used as a means to get invoices in a quick way, often within a day or two after sending the invoice. Another difference is that factoring, unlike a loan, is not based on the creditworthiness of the companies that want to cooperate with factoring companies.

The most common reasons that companies use and benefit from factoring

Fast-growing companies can quickly receive the money needed for expansion. If companies make rapid growth, they often have to deal with cash flow problems as a result of (too) long payment terms. This can create problems within a company, because instead of keeping the focus on growth and success, the company has to look for ways to bridge the payment terms for invoices. Companies that are in such a scenario are not able to realize further growth, because they have to wait until customers pay their bills. However, if companies sell the invoices to a factoring company, they get quick access to cash to maintain the focus on growth.

It can be difficult for new companies to obtain a loan. In many cases, banks do not give credit or financing to new or starting companies. Factoring companies can offer a solution for these companies.

Seasonal companies may have a challenge to obtain loans. Companies that are only operational during certain months of the year often have trouble getting a loan. Loans are usually offered to companies that can show a consistent and positive cash flow.

Factoring can be used to survive unexpected situations. Even though it is an unpleasant thought, sometimes situations arise whereby companies unexpectedly end up in financially heavy weather. In such cases, factoring firms can offer a solution by offering temporary factoring and helping the company through a difficult period.