factoring: what does it mean in Danish debt collection?
factoring in English: factoring
info General information, not legal advice. Always check the current rules and get advice on your specific case. Disclaimer
Short answer
You sell or borrow against your invoices with a finance company and get the money sooner.
Explanation
Factoring is a form of financing, not debt collection. The business gets a large part of the invoice amount paid out straight away, in return for a fee or interest. It depends on the agreement whether you or the factoring company bears the risk if the customer does not pay. Compare the total costs before you choose.
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Article: Factoring
Related terms
- erhvervsdrivende business, trader
- fogedretten bailiff's court
- ejendomsforbehold retention of title
- forbruger consumer
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