Factoring

Factoring is a financial service that serves the turnover-equipment financing companies. The factor buys the revolving ownership of the assets of its factoring clients (this is also connected client, called port company, client or user) to the buyer (customer). The transfer of ownership takes place over a non-recourse purchase of receivables at nominal value of the receivables. The purchase goes ahead, an assignment (assignment) of receivables.

As consideration for the sale of receivables factoring is the customer to pay the purchase price minus fees and security deposits of the factor. The factoring client may or must take (depending on the factor) generated from the availability of liquidity to complete.

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