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Recourse Factoring En

Factoring is a simple solution to improve a company’s liquidity and an equally simple approach to administrative outsourcing. It is the possibility of assigning receivables from accounts receivable invoices to a third party (to a factor) and thereby creating more liquidity. At the same time, the factor in its rol e in most cases takes over the accounts receivable management, which brings further advantages for the company. The following section looks at different types of factoring.

 In classic factoring, the factor decides on the basis of a credit check which receivables he wants to pre-finance or buy. Accordingly, the factor also bears the debtor risk for the selected receivables.

“Recourse factoring” is another type of factoring. With recourse factoring, the company increases its liquidity directly through the sale of receivables - as with original factoring. Here, too, the accounts receivable management is basically left to the factor. The difference to classic factoring is that the service provider pre-finances practically all receivables (without a credit check). The service provider does not assume the default risk of the debtors and subsequently settles unpaid customer receivables with the company.

In addition, a distinction is made between disguised and open (recourse) factoring; while in open factoring the customer is informed about the assignment of receivables, this is not the case in disguised factoring.

 What CrowdPay offers

CrowdPay's factoring offer is a form of recourse factoring, which is optimised through automatic and digital processes. Our core competencies lie in the pre-financing of up to 100% of the assigned receivables, the assumption of the entire invoice management as well as customised process optimisations:

For more information contact us here.