Different Forms of Factoring

Domestic/Overseas Factoring

Domestic Factoring: Where buyer and seller are located within the same country.
Overseas (Export) Factoring:Where buyer and seller are in different countries and an export transaction exists. Usually a foreign correspondent factor comes into play and deal with local factoring firm.

Revocable and Irrevocable Export Factoring

Revocable Factoring: The exporter assumes the risk of non-payment of the invoice.
Irrevocable Factoring: Factoring firm assumes risk of non-payment.

With/Without Notice Factoring

Assignment of Receivables with notice: Buyer is aware that seller is working with a factoring firm and accepts to pay the latter.
Assignment of Receivables without notice: Buyer is not informed about the presence of factor and pays the seller.