Recourse Factoring CoEFI
Recourse Factoring is an operation of commercial credits assignment that does not contemplate the assumption by the Factor of the debtors’ insolvency risk.
The Factor performs the receivables management until they get collected, and can grant funds advancement up to 80-90% of the nominal value of the assigned receivables.
Recourse Factoring is for:
- Companies entertaining durable supply relations concentrated on a “non-fractionated” clients portfolio;
- Companies intending to outsource the complete management of the commercial receivables up to their collection.
The advantages of Recourse Factoring:
- Conversion of credit management and collection expenses from fixed to variable costs based on the turnover;
- Improvement of the average collection times;
- Additional form of financing in addition to the bank credit lines.