Factoring without recourse entails the factoring company assuming the default risk, i.e. the full credit protection. In the case of factoring with recourse, the factoring company does not take on the default risk and hence does not offer credit protection, either. Another distinction can be made between factoring relationships where the debtors are informed of the sale and assignment of the receivables and are consequently asked to effect their payments to the factoring company, and factoring contracts which entail that the debtors are not notified of the sale and assignment of the receivables to the factoring company.
With export and import factoring, factoring companies offer factoring to both national and international or cross-border trade. When national enterprises (exporters) use the services of a factoring company in Germany for their cross-border business, this is referred to as export factoring. In contrast, foreign enterprises using German factoring companies for their import business result in import factoring.