Maturity Factoring

The factor guarantees payment to the client at the expiration of the receivables sold, and offering at the same time to the debtor the chance to obtain a further payment extension for the original accounts payable, charging them with the financial cost.

The transaction implies an agreement between client, factor and debtor for the settlement of the maturity receivable and the operational and financial terms of the possible extension granted to the debtor.

The advantages for the client:

  • Certainty of the financial flows with the payment of receivables at the expiration or on the agreed date;
  • Availability of the amount of receivables at the expiration;
  • Steady management of inbound cash flows.

The advantages for the debtor:

  • Potential extension of payment terms to new agreed expiration dates.