Business

What Makes the Factoring Loans the Apples of the Eyes

You are a self-entrepreneur and factoring seems to be a quick response to your financing needs, but what are the conditions? Return on the status of auto-entrepreneur, what distinguishes you from conventional companies and the means of possible financing to develop your business.

What does “self-entrepreneur” mean?

The auto-entrepreneur status has appeared on 1st January 2009 with the sole purpose of facilitating administrative procedures for those wishing to start their own business. Whether it is an activity that is complementary to your main profession or is becoming your main livelihood, the status of self-entrepreneur allows you flexibility and creativity. Regarding the factoring loans this is important now.

What is the tax benefit?

Corporate contributions are a burden that often limits their ability to grow or hire, hence the creation of this status that eases your commitments. Contributions will be assessed based on your actual turnover.

How to finance my business “self-entrepreneur”?

There are many ways to get your business off the ground. The first is the source of personal input, a decisive factor in building solid foundations for your business.

  • The business start-up loan (PCE) can supplement a bank loan or a contribution up to 7000 $.
  • Other means of financing such as Business Angels or local investment funds are resources to explore.
  • There is also factoring, which is a financial management operation that supports the recovery of receivables and finances the cash flow. It’s a credit. A third party company takes care of this part and takes a variable commission.

In concrete terms, you do not have to wait for these debts to expire, the auto entrepreneur can collect a portion of the deferred bills in less than two days. It is an immediate source of financing that allows you to fuel your cash flow.

Is factoring an alternative for auto-entrepreneurs?

Factoring is a possible solution and being a self-entrepreneur is not a barrier to accessing these financing services.

Generally, know that factoring will be particularly recommended to young self-start-up companies, and those that do not benefit from a large cash flow. If you suffer from this situation, and it prevents you from financing your working capital requirement and increased turnover, this is a recommended means of financing.

For “auto-entrepreneur” status at small CA, the financial costs generated by factoring or factoring in English may seem too high for the expected results.

However, it is up to you to evaluate the situation of your self-business. From the moment you have a legal identification number, you are eligible for factoring and some companies offer adapted packages to have a quick cash return and avoid relatively long payment periods.

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