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This approach enables factoring companies to implement solutions faster and with fewer resources, allowing them to begin offering factoring services to their clients, such as SMEs and corporates, more efficiently.

By providing pre-configured modules and features, ready-made factoring software simplifies implementation and streamlines key processes, such as handling receivables and invoices entered by entrepreneurs. 

The standardised nature of these solutions typically comes with pre-determined terms, fee structures, and documentation, making the software deployment relatively straightforward (compared to a fully customised offering). This is particularly valuable for banks and factoring institutions aiming to expand their services or transition from an older system without the delays associated with extensive IT development projects.

However, as is often the case, simplicity and speed can come with trade-offs. While good off-the-shelf software does not preclude requests for changes or new functionality over time, the standardised approach may limit the ability to tailor the system to fit specific operational requirements or market nuances, posing challenges for organisations with particularly complex or unique workflows. 

Karol Leszczyński, Product Development Manager at Comarch Factoring Platform, said, “When implementing off-the-shelf software, the process is mostly agile-oriented, allowing requirements to adapt to changing circumstances as the project progresses. 

“With a ready-made solution, clients receive a standardised version of the system early on, enabling them to gradually assess its features and determine the necessary customisations. The biggest advantage of this approach is that they can start generating revenue from the new system at an early stage and, if needed, tailor it further to their specific needs.”

What to consider when implementing a ready-made factoring system

Implementing ready-made factoring software can still be a long process, sometimes taking upwards of 3-6 months, depending on the scope of integration and the degree of customisation required. While these systems offer efficiency and ease of deployment, the process involves balancing standardisation with the specific demands of the business and its regulatory environment.

A key consideration is evaluating how well the off-the-shelf solution aligns with the existing processes and strategic goals of the factoring institution. Although ready-made systems are designed for broad applicability, they may not fully meet a company’s operational needs without some level of adaptation. Identifying essential features—particularly those tied to a company’s unique offerings—can help determine whether additional customisation is necessary.

Compatibility with local market conditions and regulations is equally important. Factoring companies operate in environments with varying tax laws, payment structures, and data privacy requirements. Ensuring that the software can adapt to these local nuances is crucial to a successful implementation.

The choice of implementation methodology also plays a significant role in determining outcomes. Traditional approaches like waterfall offer a clear, structured roadmap, while more iterative, agile models provide flexibility to address unforeseen challenges. Agile methodologies are particularly useful when extensive customisation or ongoing adjustments are anticipated.

Additionally, the transition to any new digital tool – ready-made factoring software included – often requires a cultural shift within the organisation. Employees used to legacy processes and systems will need training and support to fully embrace the new technology, making stakeholder engagement and change management essential parts of the process.

While the software itself may be ready-made, the implementation process is rarely one-size-fits-all.

Is ready-made factoring worth all the fuss?

This brings us to the question of whether ready-made factoring solutions are indeed worth all the fuss. “Before selecting a vendor for our new system, we first gathered all the requirements and customisations we wanted—there were around 600 items detailing what the software should include and how it should function. Initially, we planned to build the project scope around these specifications,” said Ewa Gawrońska-Micuń, Head of Strategic Marketing and Product for the CEE region, Country Manager Poland at Bibby Financial Services. 

“However, over time with the process of exploring the system, we realised that many of our needs can be met by the system’s features, without requiring customisation, in a different way that we designed.”

Proponents emphasise the speed and cost-effectiveness of these solutions, which allow banks and factoring companies to quickly begin offering factoring services without the high expenses of developing custom systems. The accessibility of pre-configured solutions can be especially beneficial for smaller financial institutions with limited IT resources. Moreover, the reliability of ready-made systems, combined with the ongoing updates and scalability provided by established vendors, ensures that the software can evolve alongside market needs.

“We approached the system with a clearly defined set of functionalities needed to meet the expectations of both our clients and our team,” Gawrońska-Micuń explained. 

“Exploring the out-of-the-box system and participating in functional workshops helped us identify potential gaps. Once we understood where those gaps were, we could easily decide whether customization was truly necessary or if it would be more effective to refine our existing processes to achieve the same result.”

However, critics point to the limitations of standardisation. Some ready-made systems may struggle to accommodate the unique processes or workflows of certain institutions, which can lead to costly customisations or workarounds. However, in the long term, as users become familiar with the out-of-the-box solution, many find that the pre-built processes are designed better than the ones they were used to before.

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Further, if an implementation is not well planned in advance or a vendor lacks transparency, hidden expenses, such as fees for additional features or updates, can also erode the initial cost advantage. Furthermore, the one-size-fits-all nature of these solutions may hinder organisations that rely on tailored systems to maintain a competitive edge in complex or highly regulated markets.

“Allowing clients to thoroughly explore the system before implementation should be a standard practice in the deployment process,” Leszczyński explained. “During the functional workshop phase, they gain an in-depth understanding of the off-the-shelf solution. In our experience, clients often come in with a long list of customisations, but after familiarising themselves with the system, they frequently find that the existing features meet their needs.”

“A good vendor remains flexible, readily adapting to these changes and evolving the system together with the client based on their real needs,” he summarised. The value of ready-made factoring lies in its balance of speed, affordability, and reliability against compromises in flexibility and extensive customisation. Whether it is the right choice depends on the institution’s ability to adapt its processes to fit the system or justify the investment in customisation where needed.