Use factoring financing, or accounts receivable pledge financing? Which is more beneficial?

The “Property Law” stipulates that “accounts receivable” is within the scope of pledge, so the pledge of accounts receivable is legally permitted.

Accounts receivable pledged loans and factoring businesses are essentially financed through the claims of accounts receivable. But there is still a big difference between the two.

1, the ownership of the creditor’s rights in the accounts receivable pledge business has not been transferred, and is still owned by the financing party, and the financing party belongs to the pledgee. The factoring business belongs to the transfer of accounts receivable, and the creditor’s rights of the accounts receivable have been transferred to the factoring company, which belongs to the assignee of the creditor’s rights. However, in order to prevent multiple pledges or transfers of accounts receivable, it is necessary to register the pledge and transfer on Zhongdeng.com.

2, the “Property Law” applies to the pledge of accounts receivable; the “Contract Law” applies to the factoring business.

For the effective conditions of the business, the effective condition of the “Property Law” for the pledge business of receivables is to register the pledge on Zhongdeng.com; The Contract Law requires the factoring business to notify the debtor to take effect.

3, if the pledgee of the pledged accounts receivable is unable to recover the funds due to the due date, the pledgee shall have the priority to receive the repayment if it is pledged first. rights, and may assert the pledge rights against the pledgor and the debtor.

However, for the factoring business, especially the non-recourse factoring, the original creditor’s rights have been transferred, and the recourse is not assumed. The original creditor can no longer be required to bear the responsibility for payment.

4, the accounts receivable pledge business requires the pledgor to repay first, and dispose of the accounts receivable in the event of default by the pledgor can be recovered from the debtor of the accounts receivable. However, if the amount received is more than the pledged financing amount, the remaining part must be returned to the pledgor.

Without the factoring business without recourse, the recovery of accounts receivable has nothing to do with the creditor, even if there is a recourse factoring business , the first repayer is also the debtor, and in the event that the debtor fails to pay when due, it will then recourse to the original creditor or request the repurchase of the accounts receivable.

5, the pledged financing of accounts receivable is not reported, the asset side is included in the monetary funds of the enterprise, and the liability side is included in the loan account , increasing the asset-liability ratio indicator. It has a certain negative impact on the financial indicators of the company.

Without recourse factoring business, it actually converts accounts receivable into monetary funds, although it does not reduce the company’s asset-liability ratio, However, compared with the former, it still has the effect of optimizing financial indicators under the condition that the financing function can be realized.

However, the factoring with recourse is the same as the accounts receivable pledge business, which cannot be published.

6, the “Property Law” stipulates that the pledge of accounts receivable cannot be transferred, but the factoring business can be factoring business. Therefore, the asset liquidity of factoring business is better than that of accounts receivable pledge financing.

In summary, factoring business, especially non-recourse factoring business, is better than pledge financing in optimizing corporate financial indicators, and guarantees The management business can be transferred, and for the pledge business, it has the function of adjusting the asset allocation and reporting of the factoring business.

This article was originally published and first published by “Mr. Jin Yi 2022”, the WeChat public account has the same name, pay attention to it, it will be successful.

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