Supplier and customer liquidity balance

The healthy growth of companies and the relationship between suppliers and customers requires a smart strategy. The solution: maintain liquidity from accounts receivable to increase your company’s room for maneuver.

By analyzing each client’s financial situation, Mutuo Capital adapts to the needs of companies to provide immediate and continuous liquidity balance to both suppliers and their customers, regardless of payment terms. As a consequence, your capital ratio and return on capital increase, resulting in optimized working capital and improved solvency.

What are the benefits for suppliers?

At Mutuo Capital, suppliers benefit in several ways.

Invoices are discounted only in USD, avoiding currency exchange risk. The risk of non-payment is eliminated, the invoice is paid on time. The company will have immediate liquidity, strengthening credit evaluation. It can be more agile than the discount with the client for treasury procedures, to the point that if desired, the entire accounts receivable process can be outsourced, thus relieving the workload. It frees up the credit quota assigned to the customer, allowing it to do new business.

Suppliers improve their portfolio turnover and cash flow indicators. The equity ratio increases significantly, which improves the rating within financial institutions and increases their credit lines.

Mutuo Capital takes over the processing of invoices, reminders, monitoring the receipt of money, checking the solvency of customers. In this way, possible claim and collection processes are avoided, which again is reflected in savings of time and effort.

What are the benefits for the payer?

Mutuo Capital is an excellent complementary tool for local factoring programs. It facilitates payment to international suppliers under a single tool. It takes care of the relationship with the suppliers. The financial cost of the transaction is assumed by the invoice issuer. It continues to be supplier credit. It does not involve exchange rate risk since the entire transaction is made in USD.

Mutuo Capital is the factoring company that guarantees timely receipt and consultation with the company in case of differences in the amount of the claim. This ensures that all involved are informed of important details about the respective orders and a smooth process is guaranteed.

Find out more about the exact process of International Factoring! Contact us.