Hidden (confidential) factoring is suitable in cases where the debtor refuses to work under factoring arrangements and to make payments under the supply contract in favor of the factor. With this type of factoring, the main risks remain with the supplier. Payments are made to the supplier’s nominal account, for which the factor is the beneficiary. The assignment of rights is executed in full legal compliance without notifying the debtor.
No, in this case the debtor does not sign a notification regarding the transition to factoring services.
They are transferred to the supplier’s nominal account, for which the factor is the beneficiary. Such an account is opened with the assistance of the factor.
Confidential factoring is available only for reliable and verified debtors.
These are usually:
Large corporate clients with strong financial reputations.
Long-term partners with impeccable payment discipline.
Companies with stable financial performance that have passed the factor’s assessment.
Industrial holdings, including those with state participation.
Clients with strong business reputations who meet their obligations on time.
The factor conducts a preliminary assessment of your buyer’s creditworthiness and decides whether they qualify for hidden factoring.