Wichtige Begriffe einfach erklärt
The transfer of a receivable from one creditor (the factoring client) to a third party (the factor). In factoring, the client assigns their invoices to the factoring company, which then collects them.
The risk that a debtor (customer of the factoring client) will not pay their invoice. In non-recourse factoring, the factor assumes this risk.
A service in which the factor takes over the receivables management for the factoring client.
See credit limit.
The sale of receivables through factoring generates immediate liquidity and supports improved financial planning.
If a debtor disputes or fails to pay the receivable, the factoring company may charge it back to the factoring client in recourse factoring.
A contractual agreement between the factoring client and the factor to protect sensitive business information.
The maximum amount of receivables a factor is willing to assume for a particular client or debtor.
Internal guidelines governing credit issuance and risk management within a factoring company.
An analysis of the financial situation of a company or debtor to assess creditworthiness and default risk.
A debtor credit check performed by external credit agencies.
A metric showing a company’s financial health based on the ratio between debt and income.
The customer of the factoring client who received the invoice and is obliged to pay it.
Administration of outstanding invoices, including reminders and collection procedures, often handled by the factor.
A core benefit of non-recourse factoring, where the factoring company carries the non-payment risk.
Improved liquidity from factoring enables companies to pay suppliers faster and take advantage of early-payment discounts.
A factoring model in which the factor pays the receivable only on its due date.
A clause ensuring that goods only become the buyer’s property once the invoice has been fully paid.
The proportion of a company’s equity relative to its total assets. Factoring can improve this ratio by removing receivables from the balance sheet.
A financing model in which a company sells its open invoices to a factor in exchange for immediate liquidity.
A contractual arrangement between a factoring company and a client governing the purchase and management of receivables.
The cost charged by the factoring company for its services, usually expressed as a percentage of the invoice amount.
A comprehensive factoring solution that includes prefinancing, debtor management, and default protection.
A factoring model in which the invoice amount, including VAT, is prefinanced.
The original invoice amount owed by the debtor to the factoring client.
Depending on whether factoring is with or without recourse, the client may remain liable for defaulted invoices.
The factor's ongoing review to ensure credit limits for debtors are not exceeded.
A company’s ability to access cash or cash equivalents. Factoring improves liquidity by speeding up incoming payments.
Some factoring providers require a minimum annual invoice volume for the service to be economically viable.
A factoring model in which the factor fully assumes the risk of debtor default.
The total amount of receivables previously sold to the factor that are still outstanding.
A factoring model in which the debtor is informed that the receivable has been sold to a factoring company.
A factoring variant in which an entire group of invoices is sold rather than individual receivables.
The percentage of the invoice amount the client receives immediately after selling the invoice.
A fee paid to third parties (e.g., consultants, banks) who introduce clients to the factoring company.
The maximum amount the factoring company is willing to finance based on a client’s outstanding receivables.
The primary assignee is the initial party receiving the transferred receivable (e.g., the factor). If the receivable is reassigned, the new party becomes the secondary assignee.
The maximum amount the factoring company is prepared to finance for a client’s outstanding receivables.
A model in which the factoring client retains the risk of non-payment by the debtor.
A legal concept describing the transfer of creditor rights to the factoring company.
A factoring type in which the debtor is not notified that the receivable was sold.
Payment of a receivable by the debtor to the factoring company.
See Non-Recourse Factoring.
Risk assessment and determination of credit limits by the factoring company.
See Recourse Factoring.
A model in which a company regularly finances a predefined portion of its total revenue through factoring.
In the factoring process, VAT may either be prefinanced or settled only after the debtor pays.
A contractual prohibition on the assignment of receivables — a potential barrier to factoring.
Additional cost applied when prefinancing in factoring is structured as a credit.
