The CEO of Norway's leading manufacturer of tailor-made suitcases and transport boxes for various types of equipment, Knut Steinnes, shares the story of how Nordea Finance factoring service helped Rufo AS achieve better liquidity.
The main reason why they chose factoring from Nordea Finance was to achieve better liquidity. But there where also other factors that made the choice fall on factoring.
- With the help of Nordea Finance we were able to focus on maintaining the good relationships we have with our customers, says Knut.
- The customer prioritized other expenses
For Rufo the ability to manage receivables has been a challenge. Failure to follow up on claims resulted in more outstanding payments and less funds.
- If you are a service provider that is not very well known, it can be a challenge to get the customer to pay. Because the customer tends to prioritize other expenses, such as electricity, wages and taxes. But with factoring, Nordea Finance is responsible for the administration of invoices, and we feel that the bills are paid faster, says Knut.
The company operates in a market with huge competition and relies on having funds available for product development and innovation in order to maintain the leading position.
- We invest heavily in technology and development; and that requires that we have money available. Factoring is a great help here because we get the invoices financed immediately, which means we can concentrate on developing the company and our products.
Used similar solutions before
Rufo AS used factoring services before but chose to use Nordea Finance because they offered them a very good deal.
- For us, many of the factoring services out there seemed quite similar, which is why the good offer was crucial to the decision.
When asked what he thinks would have happened if the company had not entered into a partnership with Nordea Finance, Knut Steinnes is clear;
- Our liquidity would have been low. And some of the customers probably would have waited even longer to pay, if we administrated the invoices ourselves.