Non recourse Factoring
Non Recourse Factoring is an operation of commercial credits assignment that contemplates the assumption 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 question (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.
- disponibilità di risorse finanziarie aggiuntive derivanti dall’anticipazione dei crediti.
It is the ideal tool if you are looking for a product complementary to commercial credits insurance coverage. It does not require the assignment of the entire turnover of your company but only of those credits developed with an homogeneous class of your portfolio, that we both agree upon.
For the operations of guarantee only, the advance payment is not contemplated.
This service allows you to receive a risk coverage up to 100% of the credits amount, both for the Italian and foreign customers; it allows you to safely manage the potential risks connected to the financial exposure vaunted towards your actual clients, in addition to evaluating the development potentials with new prospects.
In the event of debtor insolvency, the payment under insurance coverage is made after a certain number of days after the receivable due date.
- Precautionary evaluation of the clients both active and potential;
- Shifting of the credit risk to the Factor;
- Increased credibility with banks for the coverage of risks connected to the commercial credits portfolio;
- Possibility to access a credit insurance service that, for portfolio dimensions and type, would be otherwise precluded.
RELAX factoring: when besides your credits… You assign us your risks.