Case Procountor Kassaturva: Supporting the cash flow of Finnish companies with integrated factoring technology
Exceptional times have been shaking the world since early 2020, and overcoming the challenges put forth by the pandemic has been part of many business owners’ daily lives ever since. In addition to the challenge of adapting to various restrictions and exemptions even at short notice, also uncertainty about cash flow has shaken the operations of many companies.
Cash flow management, i.e. balancing income and expenditure flows, can be challenging even in ordinary circumstances. So, when faced by unforeseen changes in cash flow due to uncontrollable events such as the pandemic, rapid actions are needed in order to keep the business running and growing despite fluctuations in cash flow. Changes in cash flow are of course not always unanticipated or abrupt. For example, seasonal businesses need to balance their cash flow between seasons of high demand and low demand.
What to do for example in a situation where inventory needs to be maintained for predicted demand spikes in the future, the due dates assigned to purchase invoices are approaching threateningly, and receivables do not appear on the account? In a situation where timing of receivables and payables is not in balance, factoring financing, ie accounts receivables financing, is a great alternative to long and complex bank loan negotiations.
During the exceptional year, PURO has helped more than 150 Finnish companies to grow their business with factoring.
What is factoring?
With the help of factoring, the company utilizes its own sales receivables to obtain financing that can be granted to the company's account even during the same day of application. In situations where speed is an asset, both in terms of deployment and money transfer, a flexible financial service such as factoring is a viable option.
With the help of factoring, a company can both improve its speed and predictability of cash flow and liquidity, as well as offer its own customers longer payment periods. Sales receivables financing is an ideal option for both growth-seeking companies and those that need to balance between customers’ demands of longer payment terms and their own running costs. This financing solution is suitable for companies trading both in the domestic market and abroad, regardless of the size and age of the company.
Applying for funding with PURO has been made as easy as possible. Once an application for funding has been received by us or our partner, we review the company’s creditworthiness and make a financing decision in an instant. After that, the company just invoices its customers in the normal way through its existing ERP or invoicing software. PURO makes sure that the company’s customer receives the invoice and the money is transferred to the company’s account immediately after the invoice has been sent. If the company does not have an existing invoicing system in use already, it can also be managed through PURO.
At PURO, we take care of the entire invoice lifecycle. We monitor that the company's customers pay their invoices, take care of reminders after the due date and, if necessary, also offer debt collection with the help of our extensive partner network. We keep company representatives up-to-date on invoicing situations with frequent reports and send SMS alerts about payments and invoices received.
Smoother accounting with an integrated factoring solution
PURO's sales receivables financing is available to any company regardless of the invoicing or financial management system that the company has in place. Agile and flexible operating models have also enabled PURO's factoring technology to be integrated into existing ERP or financial management systems – improving the end-user customer experience even further.
PURO's technology and service have been integrated into Accountor's software, for example. Instead of the user having to juggle between several different interfaces and software, seamless integration brings all the necessary services to an already familiar system, making the user experience effortless and enjoyable. The integrations have also enabled offering of new value-adding services, such as automated accounting of factoring (available only to Procountor Kassaturva customers).
A certain formula must be followed when bookkeeping for factoring transactions. Because the process can cause headache even for many accounting professionals, we have worked with Accountor Finago to create a solution that makes everyday life easier not only for the business owners, but also for their accountants.
Procountor Kassaturva, which is a factoring service offered to all Accountor Finago’s financial management service users, enables full automation of factoring financing in accounting. Each stage of the invoice life cycle and the subsequent entries are automatically entered in the accounts on behalf of the system, leaving the business owner with the sole responsibility to choose which of his or her invoices will be transferred to PURO for funding.
Procountor Kassaturva
Procountor Kassaturva, is a fully integrated and flexible invoice financing service that PURO offers in cooperation with Accountor Finago. It is suitable for all companies, regardless of size or age of the company. Deploying the service does not require lengthy negotiation processes or separate credit rating requirements, so you can access the service and the money in your account even during the same day and no later than the next business day. Procountor Kassaturva does not include hidden costs and the only cost to the company is the commission charged on the financed sales receivable. In the user interface of the service, the user can flexibly choose which invoices are to be financed with the help of Procountor Kassaturva.