The assignment of credit with recourse provides for the transfer of the credit from the customer to the Factor after having received a loan credit with an interest charge from the date of it's emission to the date of payment by the debtor.

The customer bears part of the solvency risk . As a consequence,in case of default of payment, the customer has to refund the Factor.

The Factor advances a part of the par value of the invoice (an average of 80%) and it detains a share as a guarantee of the assigned credit.

This assignment operation is very similar to the advance on invoices through a bank Loan, however it is different for the reasons listed below:

• management and collection of the credit
• it allows a planning of cash flows even if it is limited to the part advanced by the Factor. On the other hand, it does not signify complete insurance against risks.