The sales of receivables with and without recourse solution always consists o the first phase of receivables evaluation (due diligence) in which Invenium performs a detailed analysis in preparation for the sale, aimed at assessing and forecasting the collectability of important individual positions, or entire portfolios, both nationally and internationally.
Following the evaluation, a forecast is made with an estimate of the realizable amount. Invenium is then able to submit the receivable/receivables analysed to its Financial Partner (Specialised Fund) and assist the seller throughout the operation.
The sale of receivables consists of transferring the related right by the creditor (seller) to the buyer who buys it at a certain price. When a company decides to sell its receivables to a third party, it can opt for 2 solutions:
1. Transfer of Receivable without recourse
2. Transfer of Receivable with recourse
In selling the Receivable without recourse the seller guarantees only the existence and validity of the receivable at the time in which the sale is made. On the other hand, selling the Receivable with recourse, the seller, as well as guaranteeing the existence and validity of the receivable, guarantees the solvency of the debtor. The difference between receivables sold with and without recourse lies, therefore, in the fact that in the latter the seller is required to guarantee only the existence of the receivables sold and not also the solvency of the debtor, as is the case of the former, with the consequence that the seller is released from any obligation to pay, in whole or in part, the debt should the debtor fail to do so.