FactorPlus has put the Dutch Caribbean on the global map by being the first factoring company internationally to obtain the “International Certification of Factoring Services”. The certificate was granted by the International Factors Group (IFG) to FactorPlus after an intense audit of the company. Curaçao, where FactorPlus started in 2006 and where most employees reside, is very proud of being the first globally to get certified.
“Receiving certificate number 0001 is a great acknowledgement for our teams in the Dutch Caribbean”, says Niko Kluyver proudly as the Managing Director and co-founder of FactorPlus. The certificate is issued by the International Factor Group (IFG), who has combined forces with Factor Chain International (FCI) on January 1, 2016 and is the prominent factoring association globally of which FactorPlus has been a member since 2008.
The certification process is an initiative of the association and is meant to set quality standards in the industry for factoring companies. The certificate is valid for two years. Although there are currently no requirements to obtain the certification, it is expected that in the coming years, shareholders and investors will request companies to become certified. The areas that are evaluated as part of the process are Strategy, Structure, Risk Management, Processes and IT Systems, and is conducted by Licensed Advisors appointed by the association.
“It is a nice reward for our investments in procedures, controls and training during the last ten years. Factoring is a very specific, but not a risk-free activity so it requires strong risk management and internal control procedures” explains Kluyver, “and with this certificate stakeholders know that the fundamentals of our business processes meet the international standards”.
Factoring is a service whereby a business sells its current trade receivables, or invoices, to a third party, also known as a “factor”. This is done so that the business can receive cash immediately instead of waiting 30 to 60 days for payment by the customer. Annually about USD 2.3 trillion of receivables are factored globally.