Troc Circle’s platform is built around the concept of “netting”, which is the action of canceling a payable with a receivable. Regardless of the accounting system used, Troc Circle performs seamless netting of a company’s invoices and allows it to pay and get paid instantly.

Similarly, the principle of factoring is employed by companies who wish to collect cash payments ahead of their due dates, especially once they have urgent needs for liquidity. Factoring is when a business sells its receivables to specialized firms at a discount. Though it comes at a price, factoring does benefit companies who need liquid capital quickly and accept to compromise amounts of it to gain time.

Extending netting to factoring practices creates the perfect tool for enhanced financial management, allowing the automation of a substantial part of the factoring process, while saving time and cost.

Netting facilitates the work of factoring firms by eliminating the need to factor invoices that can be netted, while still making money!

Troc Circle does away with all transaction fees, including FX fees between different businesses from different countries. On average, using digital payment methods, transaction fees could reach up to 2% and FX between 1% and 4%.

Secondly, accounting for time saved, Troc Circle greatly lowers the expenses of payment delays, which may start at 1.6% for 30 days, and continue to rise as time passes by on unpaid dues. This is because netting is done instantly and a lot of time is saved.

Troc Circle reduces the amount of working capital that is needed to cater to a company’s ARs and APs, leaving more working capital for companies to utilize in growth and developing the business

When factoring firms employ Troc Circle’s netting platform, the number of invoices for factoring can be reduced by a number of invoices that could be netted. Factoring firms would also get a clear vision of all their clients’ invoice loads and thus, would be able to draw links among them. These links – drawn up thanks to netting – create the ecosystem in which the factoring firms would plan and execute factoring with lower costs and higher efficiency, two aspects that make much room for growth and development.

Payment systems are outdated and are in desperate need of modernization in order to stop them from hindering businesses’ growth with lengthy and costly procedures. Blending netting into factoring firms’ proposed solutions comes simple and fast, and instantly rewards the factoring firms by simplifying their workload and increasing efficiency while granting more control over master data. While many factoring companies have avoided large investments in modernizing their value chains, Troc Circle presents itself as a cost-saver, time-saver, and all-round enhancer of the factoring process. In certain instances, netting may even eliminate the need for factoring altogether. No need to worry about fraud and compliance issues since Troc Circle already complies with the GDPR privacy and law regulations issued by the European Union. Once Troc Circle is integrated into a continuous netting/factoring system, companies would be able to make quick – and more importantly – well-informed decisions to speed up their performance and market expansion.