Master seasonal peaks – always stay liquid with Factoring
Challenge: High capital commitment in a seasonal business
A medium-sized toy wholesaler faces the same challenge every year: high pre-financing costs for inventory, long payment terms from retailers and strong seasonal fluctuations. Especially before Easter or Christmas, the warehouse must be well stocked, but customers' invoices are often not paid until after the holidays. This creates a significant liquidity gap that slows down the company's growth.
Calculation example: Receivables tie up capital
Monthly turnover: € 1.5 million
Customer payment terms: 30 days
Average receivables period in your industry: 40 days
Ongoing monthly costs: € 1 million (warehousing, wages, purchasing costs)
The challenge without Factoring
The toy wholesaler issues invoices totalling € 1.5 million every month. As retailers only pay after around 40 days, the company has to wait for its money. Meanwhile, high running costs continue to accrue. To cover these and order new goods, reserves have to be used up or additional loans taken out.
Our solution: Factoring ensures liquidity in every season
With Factoring, the wholesaler sells its invoices directly to Deutsche Factoring Bank. Within a few hours, 90% of the invoice amounts – i.e. € 1.35 million – are paid out. The remaining 10% follows, minus a factoring fee, as soon as the customer pays. This allows the company to remain financially flexible and strategically manage its business. The interest rates are in line with market conditions.
Your Factoring advantages at a glance:
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Liquidity tailored to your needs: Instead of waiting approx. 40 days for payments, the company receives € 1.35 million within one day. This covers running costs of €1 million and allows additional funds to be used.
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Planning security: Financial stability is maintained despite seasonal fluctuations. In addition, discounts from suppliers can be utilised, resulting in additional savings.
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Protection against payment defaults: If a customer fails to pay, Deutsche Factoring Bank assumes 100% of the risk. This ensures reliable financial planning.
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Enabling growth: The secured liquidity allows the company to expand its product range, purchase larger quantities and tap into new markets.
With Factoring, the toy wholesaler remains operational and competitive every season – regardless of long payment terms.
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*The figures shown in all examples on this page are fictitious and are for illustrative purposes only. Results may vary depending on the customer due to different parameters.
