Factoring - a set of services for manufacturers and suppliers of leading trading activity on deferred payment.

The operation usually factoring involves three persons: the factor (factoring company or bank) - the buyer demands, the supplier of goods (creditor) and buyer of goods (the debtor). The principal activity of the factoring company is lending providers by buying short-term receivables are generally not exceeding 180 days. Between the factoring company and the supplier of the goods is a contract that she as incurred claims for payment delivery of products are presented invoices or other payment instruments. Factoring company provides discounting these documents by paying 60-90% of the cost to the client requirements. After payment of goods by the customer factoring company pays the remaining amount to the supplier, hold it for a percentage of the granted credit and commission payments for services rendered.

There are many varieties of factoring services, differing primarily the degree of risk, which takes on the factoring company.

Factoring with recourse - the kind of factoring, the factor which takes the customer the right to collect all amounts due from the debtor. However, in failing to recover from the debtor amounts in full, the customer assign the debt, shall reimburse the factor missing money.

Factoring without recourse - the kind of factoring, the factor which takes the customer the right to collect all amounts due from the debtor. If it is impossible to recover from the debtor amounts in full factoring company suffers losses (although paid under customer financing).

Factoring is an open (and has notified the debtor of the assignment) and closed (without notice). He also is a real (financial claim exists at the time of signing the contract) and consensual (monetary claim arise in the future.)

With the participation of one factor in the transaction is called factoring direct, with two factors - the mutual.

In the classification of factoring pay attention to the invoice-diskaunting, although it is significantly different, despite the fact that it contains features closed recourse factoring.

Factoring is called internal, if the parties to the contract of sale, as well as the factoring company are in the same country.

Factoring is called external (mostly used the name of international factoring) if the supplier and his client are residents of different states.