Factoring is a modern form of financing which can be adapted to the needs of the factoring client. The forms of factoring vary, based on the different requirements and wishes of the factoring clients regarding amount of financing, maturity, risk protection, extent of receivables management and possible other service aspects.

In the case of Inhouse Factoring, the entire debtor and receivables management remains with the factoring client on trust for the factoring company. The factoring company fulfills its financing and credit protection roles. Therefore, this form of factoring is particularly suited for clients which have a solid debtor management at their disposal.
Standard factoring includes not only financing congruent to the client’s turnover, but also extensive default/credit protection and receivables management. Due to the comprehensive scope of services provided by the factoring company, this form of factoring is also referred to as Full-Service-Factoring.
With maturity factoring, the factoring clients use the advantages of receiving full credit protection as well as relief with a view to receivables management, but they forego the immediate payment of the receivables purchase price, i.e. the financing effect of factoring. Maturity factoring makes financial planning easier for the clients as they can agree on certain payment dates with the factoring company which are independent from debtors’ payments.
The remainder is classified as other kinds of factoring and includes e.g. intragroup turnovers, ABS-like products, turnover from not purchased receivables and refinancing other factoring companies.
For more information on the factoring services provided by our association’s members, please refer to our brochure “Who factors what?” (“Wer factort was?”).