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imported>Doug Williamson |
imported>Doug Williamson |
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| The sale or transfer by a supplier of legal title to accounts receivable (invoices).
| | ''European Union (EU).'' |
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| The supplier sells or transfers title to the receivables to a third party known as a factor.
| | Supervisory Review and Evaluation Process. |
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| The arrangement can be either with or without recourse.
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| | | ==See also== |
| Factoring is often a convenient - but relatively expensive - form of finance for weaker corporate credits.
| | * [[European Banking Authority]] |
| | | * [[ICAAP]] |
| The supplier sells its invoices, at a discount, to the factor. The factor then becomes responsible for collecting the debt.
| | * [[ILAAP |
| | | * [[Liquidity risk]] |
| A factoring agreement between the factor and a client sets out the terms on which a factoring arrangement is made.
| | * [[Pillar 2]] |
| | | * [[TSCR]] |
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| As noted above, factoring arrangements can be with or without recourse.
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| Recourse factoring allows the factor to recover from the supplier/borrower any losses caused by bad debts.
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| == See also == | |
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| * [[Factors]]
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| * [[Confidential factoring]]
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| * [[Domestic factoring]]
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| * [[Export factoring]]
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| * [[Import factoring]] | |
| * [[Internal factoring]] | |
| * [[International factoring]] | |
| * [[Invoice discounting]] | |
| * [[Recourse]] | |
| * [[Securitisation]] | |
Revision as of 20:48, 13 August 2016
European Union (EU).
Supervisory Review and Evaluation Process.
See also
