Factoring is a kind of the Unternehmensfinanzierung, which has its origin in the United States. A goal of the Factoring is possible a turnover-congruent financing in combination with a balance as well as an insurance against the loss of demands in place of a consumption credit insurance. Often in the Full service Factoring so mentioned also service tasks of the demand collection are fulfilled.

Factoringinstitut - the Factor - (in Germany often subsidiary of a bank) buys the demands of its client after submission of the calculation copy (or EDP-technically) and writes to this the invoice amount immediately well. Usually between 10 and 20 per cent of the claim amount for safety reasons will retain. The Factor accepts so the risks of the demand loss (Delkredererisiko) and exercises so also tasks of a credit insurance.

The client dissolves his short term commitments with the won liquidity i.d.R. and shortens so its balance. The Factor finances itself on the one hand by a turnover fee, on the other hand by interest, which must be paid up to the payment of the invoice amount on the part of the garnishee by the client. In practice there are further fee models.

The Factor purchases in principle not each demand, but examines the garnishees for soil quality and is limited with negative result to the pure collection of the invoice amount.

Functions of the Factoring

Service function

The Factor fulfills service functions by consultation, accounts receivable, reminders and collection service.

Del credere function

By the del credere function one understands the adhesion of a creditor for a demand loss, which occurs with the inability to pay of a debtor, e.g. by insolvency or insurance in lieu of an oath. The del credere giver makes a commitment to a supplier that a customer fulfills his financial obligations from the final business.

The risks by del credere in practice above all taken over of centraladjusting consumer societies (also "“del credere companies"” or Kontore called), by Factoring or a credit insurance. A condition for the assumption of the loss risk is a detailed analysis of the soil quality of the debtor on the part of the del credere giver.

Del credere plays also with the private liquidations of the physicians a role. The del credere giver stands for the fact in that the private patient follows his commitments from the taken up medical achievements.

Factoring forms depending upon capacity

genuine Factoring/false Factoring (non recourse/recourse)

When "“a procedure designated genuine Factoring"”, with which the Factor takes over the Delkredererisiko. On the other hand Factoring without acceptance of this risks is called "“false Factoring"”. In Germany since years genuine nearly without exception Factoring one practices, while the "“false Factoring"” is loaded after iurisdiction of the BGH with the fault of the Sittenwidrigkeit ("§ 138 BGB).

Maturity Factoring (Maturity Factoring)

Factoring variant, with which the Factoringkunde uses the advantages of the complete risk security and the discharge at the debtor management, but on the immediate adjustment of the purchase price does without.

Eigenservice Factoring (also Bulk Factoring or Inhouse Factoring)

The Factor takes over the Delkredererisiko, but no further service functions. The accounts receivable remain at the customer.

By Factoring the demands from supplies and achievements in the balance expire. The blocked amount is proven as other demands.

Factoring according to the kind of the assignment of a claim

open Factoring (Notification Factoring)

With the open Factoring the debtor is informed and requested about the assignment of a claim to pay directly at the Factor.

quiet Factoring

With the quiet Factoring the debtor is not informed about the assignment of a claim, the assignment of a claim remains invisible for him.

half-open Factoring

With the half-open Factoring the debtor is likewise informed about the assignment of a claim, can pay however only to the client.

See also

• Forfaitierung
• Balance

Articles in category "Factoring"

We found here 13 articles.

Related Websites

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• Factoring Numbers
  Demonstrates a simple way to factor numbers. Also explains the usefulness of prime factorization.


• Factoring Quadratics: The Simple Case
  Teaches how to factor simple quadratics -- those with a leading coefficient of '1' -- quickly and easily.


• Integer factorization - Wikipedia, the free encyclopedia
  A special-purpose factoring algorithm's running time depends on the properties ... Most general-purpose factoring algorithms are based on the congruence of ...


• Regents Math A: Factoring
  P, Practice Factoring the Difference of Two Perfect Squares, Michael Caldwell ... P, Practice Factoring Trinomials (leading coefficient is not 1) ...