Posts on the Topic Credit-risk

what-you-need-to-know-about-a-master-factoring-agreement

A Master Factoring Agreement (FMA) is a crucial contract that defines the relationship between a business and a factoring company, outlining terms for purchasing accounts receivable to improve cash flow and reduce credit risk. Understanding its key components ensures clarity...

mitigating-risks-in-reverse-factoring-with-recourse-agreements

Reverse factoring, also known as supplier finance or confirming, is a financial arrangement that enhances cash flow by allowing suppliers early payment on invoices through the involvement of three parties: the buyer, supplier, and financier. This method benefits supply chain...

unlocking-the-benefits-of-export-factoring-for-your-business

Export factoring is a financial tool used by businesses to improve cash flow and manage accounts receivable in international trade, providing immediate capital by selling foreign invoices to a factor. It mitigates risks like non-payment and currency fluctuations, while also...

decoding-the-meaning-of-maturity-factoring

Maturity factoring is a financial service where businesses sell their invoices with set maturity dates to a factor without immediate cash advances, receiving the full invoice amount minus fees upon customer payment. It improves predictable cash flow and reduces administrative...