- The process of drawing up contracts and calculating financing fees has significantly accelerated, especially for more complex contracts with delays.
- The accuracy of the calculations is ensured.
- Earlier errors of interest calculation due to incorrect advance payment dates, VAT rates, outdated interest data, or technical copying errors are avoided.
At Faktoro, we are building a new type of financing for SMEs. Our financing is individual, flexible, and adapted to modern technology to take as little time as possible so that our clients can do the most important thing at that time – their business. So, we have to have a lot of tailored decisions.
We aim to provide flexible and fast financing for small and medium-sized businesses through factoring and loans. We select the best financial solutions after analyzing the needs of the company.
We truly know that success lives within the people and partnerships that surround you. Whether success means changing the way people think or simply getting that order out on time, you should have a choice of how to fund your business. We are here to give that choice.
In 2023, Faktoro had 450 customers and financed 25,000 invoices.
3 main criteria for choosing the new software
- Reliable supplier. In his previous workplace, the company’s CEO Algirdas Gutauskas used to work with the SOFT4 team. Such positive experience influenced the choice.
- Flexible software. Faktoro were one of the first non-bank lenders for B2B segment in Lithuania, there was no other dedicated and localized software in the market, which they could develop according to their needs.
- Having loans in the same system. Faktoro also provides loans and needed this functionality in the system.
Faktoro Business Challenges
In 2019, Faktoro started gaining speed in the factoring industry, financing their first clients. Led by people experienced in the finance industry, Faktoro quickly became one of the leading factoring companies in Lithuania. As the company needed to manage its growth, its CEO, Algirdas, approached the SOFT4 team for the software.
Like many growing companies, Faktoro used Excel to manage their operations. It needed to be more with increasing business volumes and numbers of invoices. Working in Excel was time-consuming and inefficient; the employees would also occasionally experience errors in calculating interest, which was unacceptable in a susceptible financing business.
Complexity when adding loans:
As business grew, Faktoro added loans as a financial product to their portfolio. Their business became even more complex.
Solution from SOFT4
In 2019, the SOFT4 team launched the SOFT4Factoring invoice finance software. As Faktoro was outsourcing its accounting and did not have any IT people or infrastructure in-house, the cloud option on Microsoft Azure was chosen.
Standard SOFT4Factoring software was launched within a couple of weeks; additional development works, per Faktoro requirements, took another two weeks.
After using the standard system for a couple of years, in 2021, the SOFT4 team launched the loans module from SOFT4Leasing in the same SOFT4Factoring system Faktoro used.
In 2023, the customer self-service portals for factoring and loan customers were launched successfully. This allowed Faktoro to serve their customers even better by spending fewer resources at their end.
As Algirdas Gutauskas, the CEO of Faktoro, states, “The process of drawing up contracts and calculating financing fees has accelerated greatly, especially for more complex contracts with delays. Also, the accuracy of the calculations is ensured due to the use of Microsoft Dynamics 365 Business Central (the platform on which the SOFT4Factoring solution is created). We avoid earlier errors of interest calculation due to, for example, incorrect advance payment date, VAT rate, outdated interest data, or technical copying errors.”
Paulius Tyla, the Operation Manager at Faktoro, says, “In our fast-paced environment, the most important thing for our partners is fast reaction. And SOFT4 meets this criterion – it usually works quicker than others. Also, they have the same feeling about price – that is important. Last but not least – the team’s professionalism; they set the card at a high level.”
When a consultation is necessary, it is recorded, which prevents repeating questions and allows smooth training of all members of Faktoro’s team, especially if a problem is recurring. In addition, the customer was issued a custom guide tailored to their system.
In 2024, Faktoro should move its entire financial accounting into Microsoft Dynamics 365 Business Central and, with this, be able to analyze its data more quickly and efficiently, as all data will reside in one seamless system. With integrated financial accounting, people in charge can see all the payments, overdue payments, and interest calculations in one place and make informed decisions in real-time.
The SOFT4Factoring product was designed to meet our needs and has grown and evolved with us and our requirements. SOFT4 seemed to be a reliable partner when we were setting up our company, because we had positive experience from the times when we worked together in previous projects.
Winning customers choose SOFT4Factoring
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