If the receivables are already insured with an insurance company, does factoring cost me less? Is the evaluation facilitated?
In order to evaluate a situation like this, the insurance contracts would always have to be signed by the customer, and the single case be assessed.
However, insurance companies generally insure all the turnover of a customer, applying shortage periods and deductibles and the cost is related to the entire annual turnover. On the other hand, in factoring one usually takes action on individual debtors by applying a commission without recourse on the turnover of that specific customer. It is difficult to evaluate in advance and on a theoretical case whether the cost of factoring may be lower or less seeing that the credit management component has a value that is added to the insurance benefits.
When evaluating the receivable, if it is already insured by the customer with its company, this will, in any case, be considered in the decisions; especially if there are giros of the policy rights, that is, if the insured customer endorses the rights and benefits of the policy to the factor which, at that point, operates with the debtor with an indirect guarantee provided by the insurance stipulated by the transferor.