Factor Premium
Frequently asked questions
Here we answer the most frequently asked questions about our mature factoring and offshore bank account management services. Our aim is to provide you with clear, detailed answers to help you understand our offers and optimize your finances in complete security. If you can’t find the answer to your question, please contact us directly.
We’re here to help you with all your financial needs.
Of course you can be transparent with your customers and tell them that you have a professional solution of payment factoring in place and therefore the invoices will be made and processes by our company. Our services are 100% legal and are nothing to be hidden.
You should remind your client via email or postal mail. If no answer then you can use any legal mean to recover your funds, including our services.
Ask us for an explanation:
- Either our services have received and cashed the funds and will proceed to transfer them as soon as possible.
- Or we have not received the funds and we will need contractual documents (order, contract, etc.) so that we can sue your customer, and our insurer will pay you the invoices in the meantime.
- Yes, it’s perfectly legal to use a Factor to manage your invoices. Maturity Factoring, is a simpler concept which consists of managing the collection of your invoices, guaranteeing payment and paying you the funds when they are collected.
- Make sure you’re in a position to process your bills using our services.
- Inform your shareholders or associates if you are willing/obliged to do so.
- Yes you can choose to process certain invoices.
- You will need to take care to track them differently from those processed regularly.
- When drawing up the invoice, you should specify in the payment section that it is payable to your Factor’s account.
- You will have a warranty check drawn on your Factor’s bank, equal to (or greater) than the amount of your customer invoice.
- When you sign a factoring contract, it is stipulated that the factor will provide a warranty check.
- This check is nominative and will be sent by post to your home address.
- We wont proceed with any transaction as long as you have not received this check, which is valid for one year and renewed every year.
- You can test this solution on an initial small factoring operation and wait until you’ve opened your foreign bank account and received the expected funds, before deciding to talk to your partners.
Depending on your internal organization, this decision belongs only to you.
If you have complied strictly with the terms of your factoring contract and our recommendations, you need have no fear of being questioned by the controller. You are using a 100% legal solution.
- Factors are subsidiaries of banking institutions whose sole purpose is to lend money to commercial companies. Please understand that their goals is totally the opposite of ours.
- We don’t advance you any funds, but we enable you to optimize your tax and social charges without taking any risks and recover your bills in case of mis-payment.
- You must keep your Factor (and us) informed.
- They will have to register you as a shareholder in one of their UK LLP companies, which will be able to pay your funds into your personal bank account in France as and when you become a partner, and these funds will officially be exempt from social security contributions, because they will be declared for tax purposes as income from abroad.
- You will therefore be required to declare them to your tax office and will only have to some social contributions : CSG and CSDR, i.e. approximately 17.2%.
- The UK LLP is tax-exempt, since it is the partners who receive the income and must declare it for tax purposes in their country of tax residence.
- This is technically possible, but not advised for tax purposes, unless you have sufficient additional income to finance your lifestyle in your country of tax residence.
- Your lifestyle must be coherent with your income.
- We do not recommend this solution to our customers without first investigating their tax situation.
The banks we work with are located in non-EU countries that have not signed the « OECD transparency agreements » and are therefore not obliged to report their non-resident foreign customers to the tax authorities of the countries concerned.
This offshore banking solution is essential for the security and confidentiality of factoring operations.
- YES, you’ll have a Visa and/or MasterCard that you can use at your convenience.
- Cards allow cash withdrawals from ATMs.
- Each year, you’ll receive an « Attestation de versement de revenus mobiliers » issued by your LLP company, on which the total amounts paid into your account will be recorded.
- You will therefore have to declare this income under the heading « foreign income from movable property » when you file your tax return.
- You can create a foreign structure to hold your funds. We’ll be happy to help you with this when the time comes.
- You can also set up a SCI (Société Civile Immobilière) in France and be the minority manager of the SCI, which will be owned by your foreign company (Trust), which will contribute the share capital to the SCI, which can then become the owner of the property purchased.
- The risks are considerable, insofar as you are drawing the attention of the tax authorities, who could be led to discover the reality of the set-up.
- You risk being brought before the Commercial Court.
- We do not encourage these kinds of behaviour.