Factoring With Recourse


Who is it for


Companies, even small and medium size, with:

  • growing sales.

Benefits


  • The transferor can obtain a line of credit which is on the whole greater than that which could be obtained with the same guarantees with a self-liquidating loan

  • Fixed costs for management and credit collection become variable costs

  • Additional source of financing, proportionate to the sales volume


Description


Factoring With Recourse is the most traditional form of factoring, closest to forms of self-liquidating loans offered by the banking system.

The risk of the debtor failing to pay is still born by the transferor, who is answerable to the transferee in the event of defaulting.

The operation may be technical managed with or without notifying the debtor of the transfer, using different technical forms of collection (direct payment, collection order, documents of credit).

As the operation’s overall risk profile is determined by the creditworthiness of the transferred debtors, as well as of the transferor, and by the size of the debtor’s debt to the Factor as a result of the transfer, the operation may allow the transferor to obtain a line of credit which is on the whole greater than that which could be obtained with the same guarantees with a self-liquidating loan.


Customer care800.016.901
 

 

The factoring for your company





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