Working capital and liquidity

ING Commercial Finance

Finance your invoices while awaiting payment

Do you need working capital, while having many invoices outstanding? With factoring you can obtain financing on the basis of your outstanding invoices and can even contract the entire management of those invoices out to ING. Factoring provides 3 formulas, which you can choose individually or combined.

  • More working capital

    You are paid immediately for the goods and services provided.

  • Shorter payment periods

    Due to our expertise in debtor management, the average payment period for you customers becomes much shorter.

  • Time saving

    You will save time, as you do not have to follow up invoices yourself.

  • Protection against non-payment

    ING bears the risk if a client does not pay.

Factoring is a type of financing where the bank advances funds on outstanding invoices. You can also expand your factoring programme to include insurance against unpaid invoices. And if you want, we can take care of collection from your customers.

Are you sometimes faced with late payers? Ask our legal collection department for help. This will greatly increase the likelihood of getting paid.

For any business with an annual turnover of at least 4 million euros that has to deal with:​

  • rapid growth
  • strong seasonal fluctuations in sales and purchasing
  • the need to outsource invoice management
  • long customer payment periods
  • international customers
  • foreign subsidiaries
  • a high risk period
  • restructuring, reorganisation or management buy-out

  1. Basic: financing outstanding invoices
    You "sell" the outstanding invoice to ING Commercial Finance and immediately receive an advance of 70 to 90 percent of the amount that the customer must pay to you. As soon as ING has collected the complete amount from the client, you receive the balance of the funds. You pay some interest on the advance payments and a possible factoring compensation.
    • You are paid immediately for the goods and services provided.
    • The invoices no longer sit on your balance sheet and you can pay your suppliers more quickly. In this way, you improve the ratios and risk profile of your business.
    • You choose yourself the amount to which the outstanding invoices are financed.
  2. Option 1: debtor management
    ING Commercial Finance provides the administration, follow-up and collection of all of your accounts receivable. With the "Creditview" tool you can follow up all incoming, outgoing and outstanding invoices. In this way, you know exactly at each moment how much working capital you have.

    • You will have more working capital, as the average payment period for your customers becomes much shorter.
    • You will save on administration and personnel costs, as you do not have to follow up invoices yourself.
    • You will have fewer unpaid invoices.

  3. Option 2: Take-over of the risk of non-payment:
    ING Commercial Finance can take over the risk of non-payment by your customers either in part or in full. We first assess how great the risk is that a particular customer will not pay. Based on that information we will choose the amount of default risk that ING will assume.

    • You are protected against unpaid invoices.
    • You choose for yourself the customers for which ING assumes the default risk.

    ING Commercial Finance provides the same expertise and support in a pan-European environment as it does in Belgium.

  • Our European Passport means that we can easily accept invoices from other European countries without the intervention of the local ING office.
  • In addition, we were the first Belgian bank to create pan-European factoring syndicates. These are cooperative programmes with other large European banks, led by ING. In practice this means you have one pan-European factoring programme with 1 contact, 1 contract, 1 credit committee and access to 1 online platform (Creditview). This ensures that you always have a clear overview of all your (financed) outgoing invoices, thus optimising your cash flow management.

The charges depend on the options that you choose. Contact your ING Relationship Manager for more information.