How can you keep your working capital healthy while incorporating the requisite financial flexibility? Factoring helps you to finance your cash requirements in a proper, timely and suitable way.

Securing liquidity is the key to financing your working capital requirements and keeping your business running smoothly at all times. That's exactly what factoring offers.It is a structural solution for optimising working capital. In the video below (in Dutch) in less than half an hour you will gain a clear picture of what factoring has to offer.

If you prefer to watch the video in French, click here.

Factoring: a tailored structural solution

In exchange for transferring your invoices to an external factoring company, you can count on fast, flexible financing, monitor the collection of your invoices, and protect yourself against potential bankruptcy among your customers. Each factoring solution is tailored to fit the needs of your business. This includes companies operating at international level. In Belgium, one in six companies currently outsource their invoices to an external factoring company. The same trend is evident in other European countries.

Late payments and unpaid invoices weigh heavily on a company's financial health. To manage your finances, it is essential that you put in place an effective recovery strategy, while maintaining a commercial relationship with your customers.

Take care of your invoicing upstream

The first building block of a successful recovery strategy is implementing effective invoicing. This means before starting to recover your unpaid amounts, your company must implement everything you need in order to be paid on time. Clear invoices that are complete and free of errors are a good start to persuading your customers to settle up before the payment deadline. Also think about creating general terms and conditions that 'protect' your interests, by including (reasonable) deadlines for contesting and sanctions applied in case of default of payment. Finally, your whole invoicing process needs to work together like a well-oiled machine in terms of quality, timing, terms and more.

Adapt your approach

Next, you need to have a clear view of your outstanding receivables (customers, amounts, delays, etc.). An audit will allow you to properly assess the situation. When it comes to recovery, every case is different and varies depending on your sector, your size and your position (strong or otherwise) on the market. Moreover, one customer is not the same as another and you must often adapt your strategy. Your best customer, who always pays on time, cannot be treated in the same way as a chronic late-payer or a new purchaser (and did you think about checking their solvency before starting to do business with them?). Conclusion: separate your clientele using relevant criteria to be able to act in the best way.

Act preventively

Your recovery strategy must include a pre-emptive phase to intervene before the amount is due. How? By sending a simple e-mail, for instance, a few days before the payment deadline. This doesn't cost you anything and it gives a clear signal that you are waiting for payment. You could even add a commercial dimension here by asking your customer if they are satisfied with the product, the sale or the service. This type of diligence will be appreciated by your debtors. Along the same lines, and although it may be more costly in terms of resources, you could add a phone call from your sales team. In this instance (and all the others, in fact), you need to oversee the coordination of your sales and administrative department.

Articulate your recovery strategy

If your customers still don't pay, in spite of these preventive actions, you need to react quickly and send your debtors a reminder. Always follow through with what you have told them so as not to lose credibility. Get there slowly but surely – and attach real significance to the form and timing of your reminder letters. In your first letter use a courteous tone, because everyone forgets at some point. What if your debtor doesn't always react? Follow up with a second and (at most) third payment demand: a registered letter, possibly sent by a lawyer for the final reminder. Be increasingly firm and send a formal notice. Try to call your customer in between each attempt (especially those who are worth the effort). This is a great way of reaching a compromise, such as by suggesting a payment schedule if your debtor has specific problems with financial management. An amicable agreement is often better than a futile (and time-consuming) battle. And what's more, this may help you to continue your commercial relationship!

Follow through... if it's worth it

Are your reminders falling on deaf ears? Have you failed to receive a valid explanation? Have you even tried to negotiate in vain? It may (unfortunately) be time to revert to a higher power and take legal action. You won't be surprised to hear that this is the most complex, costly and time-consuming way to recover your unpaid amounts. This is why not all invoices are worth this amount of effort. Properly assess the situation (the amount of the invoice, the 'position' of the customer in your portfolio, etc.). If you're thinking about taking the matter to court, you should seek the advice of a lawyer. But remember there is no guarantee that things will be simple (from simple non-payment, to dispute of the invoice or even bankruptcy of the customer).

Final words of advice

Whatever the result of your recovery efforts, make sure to keep a record of any 'accidents' in terms of your customers' late and missed payments. This kind of monitoring may prove very useful in future. And last but not least, you could even choose to manage customer risk (completely or partially, upstream or downstream) using external actors (such as a lawyer or bailiff) or companies specialised in recovery (such as BNP Paribas Fortis Factor). This is a more expensive strategy, but guarantees you greater peace of mind, as long as you choose the right provider...

Thanks to its low-pollution solutions and the arrival of new investors, the Mons-based company has every intention of continuing to grow. Discover more about this inspiring success story.

Eradicate the environmental and health problems associated with medical waste on a global scale: Ecosteryl's ambitions match the technical expertise of this Mons-based company. Founded in 1947, its core business was equipment and machinery for the mining industry.  Around twenty years ago, it completely reinvented itself by specialising in the treatment of (potentially) infectious waste from the healthcare sector.

A global player with high-profile clients

Today, Ecosteryl is a globally recognised player in its sector, exporting 100% of its production to more than 65 countries. Its customers? Hospitals, of course, but also organisations in the waste recycling sector and international institutions such as the World Health Organisation, the World Bank and the United Nations, as well as cities and states. The company employs around forty people and has an annual turnover of over €20 million.

Medical waste, a critical public health issue

Syringes, dressings, masks, sharp instruments... 15% of medical waste is considered hazardous and therefore requires special treatment. Given that a single hospital bed produces between 0.5 and 3 kg of this waste every day, it's easy to imagine the scale of the problem. The infectious, toxic and sometimes even radioactive risks associated with hazardous medical waste are far from minimal: among other things, it can trigger or accelerate a pandemic, and even give rise to new diseases. Decontamination and recycling of this waste, the only solution to eliminate this health risk, is therefore a global public health issue.

An environmentally responsible process

Direct incineration or autoclaving: these are the two methods used by Ecosteryl's competitors to decontaminate hazardous medical waste. The problem is that these processes are far from being environmentally neutral. Incineration causes significant CO2 emissions and harmful emissions, such as dioxins, and is also energy intensive. And autoclaving requires large amounts of water and energy, again with significant environmental consequences.

It is in this area of the environmental footprint that Ecosteryl has made a difference, thanks to a technological breakthrough developed in collaboration with the University of Paris. The decontamination and recycling process uses microwave and dry heat technology to disinfect hazardous waste. The decontaminated waste is then shredded to reduce its volume, after which it can be processed in the same way as non-hazardous waste. Or better still, it can sorted and recycled.

This process requires very little electricity to operate, and its environmental performance compared to incineration and autoclaving is incomparable in terms of emissions and water consumption.

Too much plastic in medical waste: recycling instead of prevention

Single-use plastic products, equipment and utensils are a fact of life in hospitals. In many cases, this single use is justified, for example for syringes. The problem arises when this waste is directly incinerated. But thanks to pre-treatment, decontaminated and dried waste can be given a second life.

Until now, there has been no machine for this final stage. Ecosteryl's latest development, R-Steryl, fills this gap. It is a unique sorting centre. Placed after the decontamination machines, it can sort decontaminated waste and recycle up to 80% of it. The major players in waste collection and treatment know that recycling is and will be a real challenge in the coming years. Ecosteryl is also positioning itself as a key player in this field, and is investing in a number of analyses to this end.

Private equity to accelerate development

Despite its size in the medical waste decontamination sector, Ecosteryl has no intention of slowing down. The company intends to continue and accelerate its international growth, and welcomes new investors: BNP Paribas Fortis Private Equity,  Wallonie Entreprendre and IMBC, an investment company focused on the Mons, Borinage and Centre regions. Philippe Dufrasne, Chairman of Ecosteryl, comments:  “With these new shareholders, we have found the right partners to help us stay ahead of the game and achieve our long-term goals, particularly in terms of ESG (Environmental, Social and Governance) performance.”

A priority to invest in the transition of companies

BNP Paribas Fortis is also enthusiastic about this new project.

“We are particularly proud to support this company, which has developed a unique expertise in the production of cutting-edge equipment specialised in the environmental field. Over the years, Ecosteryl has succeeded in expanding worldwide in a niche market at the intersection of environmental and health issues. This investment is fully in line with our ambition to invest €1 billion in venture capital by 2025, focusing on funds and companies that respect environmental, social and governance criteria,” explains Raf Moons, Head of Private Equity at BNP Paribas Fortis. 

The Princess Elisabeth Island, is the world's first artificial energy island for transporting offshore wind power to land. A combination of innovation, technology and biodiversity conservation.

8,802 km: that's the length of all the onshore and offshore power lines and cables managed by Elia Transmission in Belgium.  As the operator of the Belgian high-voltage grid, Elia keeps the lights on by matching electricity generation and consumption at all times.

Artificial energy island

Grid operator Elia has just started to work on one of the most challenging projects in its history: the Princess Elisabeth artificial energy island. It will be located in the middle of the 285km² Princess Elisabeth wind zone. This is the second offshore wind zone in the Belgian North Sea that has yet to be fully built. With a capacity of 3.5 gigawatts, the new wind farms will produce electricity equivalent to the annual consumption of 3.5 million households.

Catherine Vandenborre, CFO of Elia: “The Princess Elisabeth Island is a vital link in the successful energy transition in Belgium. The island has a dual function. First, it will bring electricity from the new offshore wind farms to the mainland. And then from 2030, the island will also be connected to wind farms in other countries with which electricity can be exchanged. This will give our country access to cheap and renewable energy.  This is crucial for our energy-intensive industries, which are rapidly moving away from fossil fuels and switching massively to wind energy over the next 10 years. In this way, Belgium is contributing to Europe’s climate goals and the ambition to realise 300 gigawatts of offshore wind in the North Sea by 2050.”

Designing for nature

In terms of location, design and implementation, due attention is being paid to limiting unwanted impacts on the marine environment. “We are going one step further and opting for nature-inclusive design,” explains Catherine Vandenborre. “In consultation with experts, we are taking concrete steps to protect the biodiversity around the island. For example, we are adding ledges to the outer storm walls where the kittiwake – a vulnerable bird species – can rest and breed. Below the waterline, several measures will be combined to create a diverse and rich artificial reef, with a particular focus on the return of the European flat oyster.  The measures have been selected on the basis of their technical feasibility and expected positive outcome.”

Co-creation and innovation

Achieving such a nature-inclusive design required close collaboration and knowledge sharing between all stakeholders and different domain experts. “An instructive process for all involved,” confirms Vandenborre. “With this initiative, Elia wants to set the tone for the environmentally friendly realisation of future offshore infrastructure. Europe’s seas are becoming the power stations of the future. By integrating biodiversity conservation measures from the design and construction phases, we want to increase and accelerate the positive outcomes. The co-creation project with the experts has already made an important contribution to scientific development in this field. But the work is not finished. Monitoring programmes will be put in place to follow up, and if necessary, adjust the selected measures.

Ready for the next gust of wind

As one of the main financial partners, BNP Paribas Fortis is supporting Elia’s transition to a reliable, affordable and environmentally friendly energy system. BNP Paribas Fortis has already financed 8 offshore wind projects in the Belgian North Sea. These 8 farms together represent 2200 megawatts, equivalent to 2 to 3 nuclear power plants. The next round? New wind farms in the Princess Elisabeth zone. This will be done through project financing, with the underlying contracts and resulting cash flows backing the loans.

How does Ziegler aim for greater environmental responsibility? By methodically exploring various avenues. Their approach is based on four key pillars.