No, factoring is not the same as debt collection. Debt collection is about the collection of outstanding debts. Factoring helps the clients generate liquidity with an innovative financing instrument. The factoring clients‘ and debtors‘ credit ratings are regularly checked in advance; thereby, our members‘ clients have a higher level of creditworthiness than „debt collection customers“. Hence, factoring differs considerably from debt collection: “Factoring purchases “just” the good receivables, debt collection takes care of the addled debtors.”
Factoring FAQ