Loans under digital control

Specialized software created for factoring firms takes into account two fundamental criteria: the size of the company and its specialization. In general, the larger the factor, the less flexible and more focused is the offer on the individual needs of the client. The lack of accounting segment, risk management plan (module) and sales management module is typical of systems for banking factors working with the parent companies core systems. Systems for factors unrelated to banking require solutions with complete factoring service (activities), as well as additional services such as risk and sales management and overdue debt (liabilities) monitoring.

A limited (modest, narrow) choice

“There is only a small number of factoring software offers; they are limited to two products developed by Polish companies and several manufactured by foreign firms. In Poland, Anica System (located in Lublin) with its Ebi Factor and Comarch systems offers the Comarch Factoring application” says Michał Kinkel, the CEO of AOW Factoring.

“The choice abroad is greater. Solutions are offered by the UK, the US and German companies. One the most established products derives from the British HPD Software, manufacturer of the I-Factor and the more advanced Aquarius system. All systems of this type were designed for the banking sector and are therefore suitable for factoring firms associated with banks” assesses Michał Kinkel.

The construction, flexibility and price make these products inadequate for smaller and independent factoring companies. As a result, smaller firms decide to outsource (delegate) the software development in order to meet their individual (unique) needs. Hence, Arvato Services Poland uses the FIAS (Factoring Information and Administration System) application developed by Bertelsmann group. In 2009, AOW Factoring implemented Rebit Consulting’s Kalypso Factoring Management System.

A different solution was applied by Coface Poland Factoring. It is based on the concept of ‘in-house factoring’ , which allows the client to decide on how to settle the contractors’ payments of each invoice. This is significant for companies that use system solutions and specific procedures related to the management of receivables (debts) (liablilities). Moreover, keeping the contact (communication) with the factoring recipients (customers) at minimum means that Coface does not interfere in the relations between business clients and their contractors” comments Wojciech Superson, Manager (director) of Customer Service at Coface Poland Factoring.

Dual role

Nowadays, clients of factoring firms demand a deeper communication with the company. It is therefore necessary to allow the recipient to access the information about the status of their order” explains Jarosław Zając from Comarch. The internet enables the factorer to have an online view and access to their accounts; they can also create reports or enter the claimed liabilities directly into the system. Factoring systems also permit users to send messages and notifications to their clients. A further function of this software is the automatic process execution related to factoring services: calculation of commission (provision) and interest, registration of invoices, support with regard to collection of receivables and in the case of delayed (overdue) payments throughout the whole process of vindication (debt collection). Additionally, a comprehensive system of alerts informs the user about important events or activities connected with current invoices.
Małgorzata Ciechanowska

Source: Puls Biznesu, poniedziałek 23.11.2009, pb+ faktoring

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