No Recourse Factoring CoEFI
Non Recourse Factoring is an operation of commercial credits assignment that contemplates the assump-tion by the Factor of the debtors’ insolvency risk in the agreed terms / conditions and within the credit limit communicated in advanced.
The Factor, besides protecting the assignor from the debtors’ insolvency risk, can focus on the receivables management until they actually get collected, and provide the advance payment of the receivables in ques-tion (usually around 80-90% of their nominal value).
Non recourse Factoring is for:
• Companies entertaining durable supply relations with their customers and interested in receiving protections from the insolvency risk of their own clients;
• Companies approaching new markets especially abroad.
The advantages of Non Recourse Factoring:
• Guarantee in case of insolvency of the transferred clients;
• Punctual clients evaluation conducted by a specialized operator normally performing its duties in the national and international markets;
• Credit management transferred to a skilled operator;
Increased financial resources granted by receivables advancement