Monthly Archive: January 2020

Credit cards: what conditions to obtain them?

credit cards

Are you looking to get a credit card? Whether it’s replacing your current credit card or getting a new one alternatively, the basic conditions are in principle the same for all customers. Let’s see the main ones.

The decision whether or not to accept a credit card request depends primarily on the creditworthiness of the applicant.


Basic conditions

credit cards

Even before carrying out a study on the solvency of the applicant, the bodies in charge verify that the basic conditions are filled. In particular:

  • Professional situation of the applicant: if the latter is unemployed, the request will be automatically refused unless he has declared a net fortune of over 250,000 dollars.
  • Precepts in progress: if the applicant has precepts in progress, even for very low amounts, he will have to pay them obligatorily before he can obtain a credit card.
  • Age: minors cannot get a credit card, but it is possible to request a prepaid card.


Solvency and integrity study

Solvency and integrity study

If the applicant is not unemployed, the issuing body then carries out a solvency study. In general it is a question of deciding whether the credit card conditions are met. In particular, the following are examined:

  • Financial situation (good repute): are there any negative codes to the ZEK? Are they recent?
  • Available income: is there enough budget to release a card?
  • Personal situation: how old is the applicant? Are you addicted? Free professionist? Do you have dependent children?

Generally, it is the solvency study that determines whether the credit card conditions are filled, but not only: this will also determine the threshold of the ceiling.


Credit card ceiling

Credit card ceiling

If all these conditions are met, the request will be accepted. Furthermore, depending on the solvency and integrity, a more or less important ceiling will be proposed. The latter corresponds to the credit card limit. The applicant can then either accept the proposed ceiling or request a lower limit.

It should be noted that all entities offering Visa / Mastercard credit cards do not have the same conditions regarding the proposed ceiling. Indeed, some solutions, such as those proposed on Multicrédit, very often allow higher ceilings to be obtained. In case of doubt, it is always possible to make a request and check the proposed conditions before committing.


The alternatives: the prepay card

credit card

In case of impossibility or refusal to obtain a “traditional” credit card, there is always the possibility of obtaining an alternative such as the “prepaid”, a type of credit card accessible to everyone. Unlike the “traditional” solution, the latter payment solution must be loaded in advance before it can be used.

Supplier credit: practical pre-financing of your orders

credit loans

Numerous companies in Switzerland are faced with the same problem: on the one hand, it is necessary to pay their suppliers quickly, but on the other, customers pay for 30, 60 or 90 days. This causes a strong imbalance between collections and expenses. To deal with this problem, supplier credit is a modern and practical financing technique.


Finance your orders with supplier credit

Finance your orders with supplier credit

How does a supplier credit work? Your company buys goods from a business partner. Normally you have to pay the invoice of the latter according to the deadlines. The supplier credit is to finance your orders through a financial partner: the factor . The factor pays the invoices of your suppliers in your place within 24 hours, provided that you repay the amounts lent to him in a generous period of time. This system has several advantages:

  • Your suppliers are guaranteed to get paid. This offers you a better basis for negotiating discounts and lower purchase prices.
  • Benefit from payment terms that go up to 120 days for repayment to the factor, allowing you greater financial leeway.
  • You can place orders at any time, even if the liquidity needed to place orders is not currently available.
  • Your company’s liquidity increases because the outgoing cash flow is slower = positive cash flow.
  • A supplier credit is therefore doubly useful: your cash flow improves because you do not have to pay your order immediately and at the same time you benefit from discounts and reductions from your suppliers.

For more information, Prestafix offers a page dedicated to supplier credit / reverse factoring and the possibility of a free consultation by a specialist!


What is factoring?

supplier credit

The term “supplier credit” is a simplified term for the financial principle of reverse factoring. Factoring is a financial concept that is still little known on the Swiss market, but is rapidly expanding. With “classic” factoring, it is the credits deriving from the sale that are financed by the factor. In other words, the so-called “classic” factoring allows immediate collection without waiting for the customer to pay. There are different types of factoring, let’s see which:

  • Classic factoring : pre-financing of sales invoices. The seller is paid by the factor, which in turn is paid by the customer. It is a uniquely B2B solution.
  • B2C factoring : works in the same way as the classic variant, but can be used to pre-finance the invoices of private customers. (B2C = business to customer).
  • Supplier credit or renverse factoring : the renverse principle, according to which it is not customer loans that are pre-financed, but supplier invoices.

Within the factoring family there are already several special products that meet different needs. We recommend that you contact a factoring specialist to find out more about the nuances of factoring.


The advantages of factoring, an example:

credit loan

Do you manage a commercial company that sells products delivered mainly to companies (B2B) and, in smaller quantities, to private individuals (B2C)? As distributors, you are always dependent on the shipments of your business partners, which you must pay as quickly as possible. Opt for classic factoring for B2B, B2C customers and supplier credit. Your company takes advantage of your decision in several ways:

  • With supplier credit, your orders are paid in 24 hours . Take advantage of a 120-day payment term from most factors.
  • You will receive the proceeds of the sale within 24-48 hours. This will greatly speed up your income.
  • The result is faster cash flow , more liquidity and more flexibility for your financial planning.


The advice of a specialist

credit loans

Factoring solutions such as supplier credit are highly specialized financial products that can be individually adapted to your company. For this reason, a complete consultation and a precise analysis of the company are necessary before concluding any contract. It is advisable to consult a specialist who can perform these analyzes professionally. For example, Prestafix Services offers factoring solutions with the analysis of the corresponding file so that you can receive a product suitable for your needs. In any case, it is recommended to contact an expert before signing the contract.