As a small business, you don’t want to be worrying about future cash flow. With Banqup you can rest easy.
Using Banqup, your business can tap into flexible working capital for when you really need it. All to ensure that you stay financially stable in a way that works for you.
Create your invoices in Banqup, just like you normally do.
Select those invoices that you would like to finance.
You will receive your financing within 48 hours, directly in your Banqup Business Wallet.
All financed invoices are automatically processed and tracked.
Finance your invoices for accurate, real-time cash flow.
Real-time cash flow allows you to make informed financial business decisions.
Gain more available time by entrusting late payments and customer follow-ups to Banqup.
With factoring, you sell an open, not overdue receivable to a factoring company and receive the invoice amount in the shortest possible time, at the same time you are protected against non-payment. You pay a small fee for this upfront cashflow.
Banqup invoice financing is disclosed, non-recourse factoring.
Non-recourse factoring means that we bear the risk of non-payment of a sold receivable for you and you, in a legally binding way, transfer and sell your receivables claim to the buyer.
Disclosed factoring means that your customer learns about the sale of the receivable. We take care of this - you do not have to do anything. We also take care of the dunning and collection if necessary. Of course, we keep you informed about the payment status of the receivable.
In addition, our factoring is single factoring, which means that you do enter into a framework agreement with us, but you are not contractually bound to us and can decide for each receivable individually whether you want to finance it. So, your business enjoys maximum flexibility with our factoring offer.
You can decide at any time how much liquidity your business needs and how many receivables you want to sell. In addition, you are secured against non-payment at the same time. Full flexibility, fast liquidity - and completely independent of banks.
By selling the receivable, you reduce the value of your balance sheet and thus increase your equity ratio because of the cashflow injection, which can have a positive effect on your credit terms.
The sales process is completely digital and requires only a few clicks.
Factoring works very simply with us. After you have registered for factoring and signed the factoring framework agreement, you will be shown all open receivables that you can sell. You select the receivables you want to sell and receive the displayed amount in your account within two banking business days (if the purchase is approved).
The framework agreement can be terminated at any time with 1 month's notice by email to email@example.com. In addition, your company can stop selling your receivables immediately. Hence, there is no obligation to sell and you are fully flexible.
The debtor is informed about the sale of the receivable. For the invoice recipient, only the account and the recipient to whom the payment must be made will change, nothing else will change.
You cannot have more than €500,000 of sold receivables outstanding at any one time, while a single invoiced amount must not exceed €250,000. Once an receivable is paid, it is no longer open and you can sell another receivable.
Payment is usually made within 2 banking business days in accordance with SEPA rules.
Your company is in principle eligible for factoring, if (additional eligibility criteria might be required):
- it had sales of more than 1 million euros last year;
- the company is neither a US resident, incorporated under US law, nor subject to tax in the US;
- it is not a sole trader;
- it is not involved in industries such as construction, gambling/betting or adult entertainment;
- there are persons with sole signatory on behalf of the company.
- The receivable is denominated in euros.
- The nominal amount of the receivable is not below €500 and does not exceed €250,000 (plus VAT).
- The debtor is an entrepreneur with its registered office in Germany, but neither a sole proprietor nor a partnership under civil law (GbR).
- The debtor is not a public corporation or institution, CRR credit institution, savings bank, or financial institution.
- The debtor is not a company affiliated with the seller.
- The debtor is not included on a sanctions list, embargo list, PEP list or on other comparable lists.
- The debt is subject to German law and subject to the jurisdiction of Germany.
- The receivable is due for payment from the date of purchase within at least 1/3 of the original payment term.
- The payment term of the claim shall not exceed 180 days.
- There are no defenses or objections against the claim, in particular no rights of set-off or retention, and the debt is free from third party rights. The service underlying the invoice is fully rendered.
Setting up the factoring module is free of charge for you. Unlike most factoring providers, you do not incur any fixed costs. You pay a factoring fee, which is calculated as a discount on the invoice amount and is currently between approx. 1.75 and 4.75 percent plus VAT. The fee depends on different variables like the quality of the recipient, the invoice amount, and the payment terms. Beyond that, there are no further costs for you.
Invoice financing with Banqup is fully digital. You can conveniently apply for access to Banqup invoice financing online at any time.
First you have to answer a few questions about your company according to the anti-money-laundering regulations, the company's legal representatives, and beneficial owners. This only takes a few minutes. After that, all legal representatives have to go through the video identification process. After that, the factoring framework agreement still needs to be completed digitally. In total, the whole application process usually takes no longer than two bank working days.
After completion, the financing module will be activated in your Banqup account and you can sell the first receivable.
The unconditional purchase price is paid out within two bank working days. You will receive the 15% retention less the factoring fee and the applicable VAT, as well as any further deductions, e.g., for cash discount, as soon as the invoice recipient has paid, has filed for insolvency or no later than 120 days after the original payment date.