Credit Insurance Policy

Endorsement of Lender Credit Insurance Policy occurs to lower the risk of Buyer defaulting. Thus, if the Buyer fails to pay the Invoice, it will be the Credit Risk Insurer that will compensate the Lender.

This Endorsement refers to the redirection of Compensation Rights, meaning: the Provider company that purchased the Credit Insurance Policy was entitled to compensation in the event of a Credit Insurance claim. The Policy Endorsement embodies the endorsement of the Compensation Rights that become the property of the Financier.

This Endorsement is useful because it allows the Supplier company to avail of a service in addition to Credit Risk Coverage and in which it chooses which Buyers to endorse to the Lender.

With the insurance Endorsement the Provider can benefit from Non-Recourse Factoring and can decide with whom to take out Credit Insurance and with whom to take Factoring. It is the company that decides what company provides these services.

endosso de apolice de seguro de creditos

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Notification Factoring

Another way of classifying Factoring has to do with the relationship of the lender to the buyer. In Notification Factoring the Buyer will be informed that the Invoices of a particular Supplier must be paid to the Financier.


Savings by volume discounts and amount advanced

With the anticipation of your receipts you'll have more cash to get better conditions from your suppliers. As a result, this type of management can add many euros/pounds/dollars to your operating margin.

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Know what other types of Factoring exist.

Non-Recourse Factoring

Credit Risk Coverage by Financier

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