To understand the terms used on our website
In this type of solution the customer (debtor) of the company is informed of the existence of the factoring contract.
Contrary to the notified factoring, the customer (debtor) of the company is unaware of the existence of the factoring contract.
It is a global solution where the factor (factoring company) provides financing, credit insurance and accounts receivable management (follow-up of overdues, possible reminders and collection).
In-house factoring (or with management mandate entrusted to the company)
In this type of solution, the factor only provides financing (and possibly credit insurance), while the management of receivables is done internally by the company.
Factoring with separate credit insurance policy
This is a solution where the company subscribes credit insurance separately from the factoring contract.
This solution is based on the financing of the company's supplier invoices by the factor, which is then reimbursed, after a set period of time, by the company.
Comprehensive credit insurance contract
This is the most common solution for companies looking for protection against the risk of non-payment. All open terms' buyers are normally insured.
Selective credit insurance
This type of solution tends to develop for companies aiming at covering only a limited number of counterparties.
Single buyer insurance
The objective of this type of insurance is to cover the company against the risk of non-payment occurring from one single buyer (for a regular number of transactions).
Single risk insurance
This type of solution is intended to cover one single buyer for one single transaction.
Top Up cover
As its name suggests, the objective of Top Up cover is to complete an insufficient coverage already in place.
Political risks are any type of risk associated with a country or state entity. Examples of political risks include devaluation or non-transfer of currencies.
Companies may be required to cover this risk in the event of bankruptcy of one of their customers when costs inherent in the manufacture of the product intended for their customer are not recoverable (personalized manufacturing).
Risks of non-delivery
Companies are sometimes led to pre-finance their customers so that they can deliver a product in the long term. Failure to deliver in accordance with the agreed contractual terms constitutes a risk that can be hedged.
The Loss payee or transfer of the right to compensation is a security usually requested by one or more banks in connection with the financing of the company's activity.