The Challenge

Factoring is one of the most dynamically developing services in Europe and all over the world. It is hoped that the trend will continue for the next few years. Actual growth of the factoring market and further development perspectives encouraged Comarch to invest in the creation of new software for operating factoring transactions. Factoring as an alternative to traditional overdrafts, is gaining popularity on the market. Factoring processes may however cause many difficulties for both vendor and debtor. Although these processes are usually automated by IT solutions, they may not provide the desired effect.

The most common problems related to factoring are:

• Technology – nowadays the internet is affecting almost every aspect of our daily lives. Clients are expecting functional factoring software which can be accessed via the web.  Many factoring IT systems do not fulfill this requisite.
• Lack of automation of business processes – the automation of processes affects competitiveness and helps sharpen businessedge on the factoring market.
• Daily data entry – many day-to-day routines consume most of your employees’ time, which could be utilized more efficiently.
• Localization of the factoring software – some factoring solutions are designed for one specific national market and do not provide multi-currency and multi-lingual support.
• Risk control – the factoring business is strongly connected with risk. Sometimes lack of or miscalculation of risk may bring huge losses to a factor
• Slow money transfers – usually transferring money to clients’ current accounts takes a couple of days.
• Lack of efficiency of the factoring solution - due to the turnover growth the factoring software may suffer efficiency problems.
• Competitiveness – not all factoring software is characterized by the complete coverage of all areas related to the factoring business. It is always better to own one centralized IT solution instead of maintaining many smaller systems.
• System incompatibility – some core solutions may not be compatible with optional modules, which generates extra costs in case of system extensions.
• Communication difficulties between participants of the factoring process.
• Security issues related to weak authentication processes and protection mechanisms.