Factoring
Credit institutions and financial services institutions offer companies various factoring services as additional and alternative forms of financing. To assess the effects of factoring for your company, you need to know the legal consequences of the respective factoring agreement, such as, for instance, whether you are still liable for the solvency of your customers or whether this risk is assumed by the factoring company. What requirements must your accounts receivable meet for them to be purchased by the factoring company in the first place? Do you have to provide collateral on a reserve account? What happens to receivables that are not covered by the amount granted by the factor? Are you obliged to assign your receivables to the factor? These and other questions are negotiated when setting up the factoring agreement.
Alongside classic factoring, the sale of individual receivables from certain projects may also be a financing solution worth considering. In this case, a separate, carefully worded purchase and assignment agreement must be drawn up for the individual (type of) receivable.
We have more than 20 years of experience in successfully drawing up agreements for banks and financial service providers, particularly factoring agreements and purchase and assignment agreements for individual receivables. This expertise enables us to help you achieve best results in your negotiations with your financing partners. We advise you on how to prepare your accounts receivable for a successful factoring agreement and make sure that all legal and business aspects concerning your customers are well taken care of.