In factoring, the usual deduction – usually one fifth – when paying out the purchased receivables. The amount serves to compensate for any difficulties of any kind in connection with the receivable. If the receivable is paid in full – i.e. if the debtor has paid without further ado – then the
security retention amount is transferred by the factoring company to the factoring client. – Under a credit insurance policy, a justifiably made security retention and, as a rule, the full reduction amount can be insured. – See SelfFactoring, security, security money.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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