Factoring transactions can be divided into two different categories:
The Model
Factoring can meet the various needs of businesses, including those relating to the assumption of risk, supporting them in their relationships with their clients.
Recourse
Target: small and medium-sized enterprises
- Recourse to the assignor in the case of insolvency of the assigned debtor.
- No assumption of credit risk by the Factor with respect to the assigned debtor.
- Assigned debtors remain the primary source of repayment.
- Possibility of intervention on individual debtor.
Non-recourse
Target: medium-large companies
- There is no recourse in the event of the assigned debtor's insolvency.
- Assumption of credit risk by the Factor with respect to the assigned debtor.
- Intervention on a portfolio of debtors.
For both categories, the factoring transaction can be:
Notification
- The Client/Debtor is aware of the receivable assignment and pays the Factor directly
- The Factor, on behalf of the Supplier/Assignor, notifies the Client/Debtor of the receivable assignment
- High management impact for the Factor, which directly manages collections in place of the Supplier/Assignor
- The Factor has a direct relationship with the assigned debtors
1The Supplier invoices the Client
2The Supplier assigns the invoices to the Factor
3The Factor notifies the Client of the assignment
4The Factor advances the receivable to the Supplier (if requested)
5The Client pays the Factor directly at maturity
Non-notification
- The Client/Debtor is not aware of the receivable assignment and continues to pay the Supplier/Assignor
- The Supplier/Assignor receives collections from the Client/Debtor and transfers them to the Factor
- Low management impact for the Factor (collections are managed by the Supplier/Assignor)
- No relationship between Client/Debtor and Factor
1The supplier invoices the client
2The supplier assigns the invoices to the Factor
3The Factor advances the receivable to the Supplier (if requested)
4The Client pays the Supplier at maturity
5The Supplier transfers collections to the Factor
Our Factoring Services
MBFACTA Factoring is a set of financial and management services developed to meet the most demanding requirements of industrial and commercial companies.
Thanks to its solidity, and the dynamism and flexibility of its structure, MBFACTA guarantees "tailor made" factoring solutions for any type of company, while also being able to count on the high level of experience, competence and professionalism of its Specialists.