Types of Debtor Finance
Debtor finance products, by whatever name, essentially fall into two categories:
- Confidential: the customer/end-user is unaware of the funding being provided, usually called 'invoice discounting',
- Disclosed: traditionally referred to as 'factoring', where invoices have a notice that warns the customer to pay the funds to the financier in settlement of the debt.
Export factoring is a highly specialised and selective form of factoring, and can provide non-recourse funding to exporters, paid at the time of shipment, and with solvency of the overseas importer underwritten by an overseas bank or institution.
Under each category there are a number of financiers, all with varying policies and guidelines regarding their procedures, security, pricing and target markets. There are providers of import and export factoring, and their conditions vary widely.
Read more about this topic: Debtor Finance
Famous quotes containing the words types of, types, debtor and/or finance:
“The wider the range of possibilities we offer children, the more intense will be their motivations and the richer their experiences. We must widen the range of topics and goals, the types of situations we offer and their degree of structure, the kinds and combinations of resources and materials, and the possible interactions with things, peers, and adults.”
—Loris Malaguzzi (1920–1994)
“Our children evaluate themselves based on the opinions we have of them. When we use harsh words, biting comments, and a sarcastic tone of voice, we plant the seeds of self-doubt in their developing minds.... Children who receive a steady diet of these types of messages end up feeling powerless, inadequate, and unimportant. They start to believe that they are bad, and that they can never do enough.”
—Stephanie Martson (20th century)
“Every novel is a debtor to Homer.”
—Ralph Waldo Emerson (1803–1882)
“There is an enormous chasm between the relatively rich and powerful people who make decisions in government, business, and finance and our poorer neighbors who must depend on these decisions to alleviate the problems caused by their lack of power and influence.”
—Jimmy Carter (James Earl Carter, Jr.)