The paragraph financing is a kind of the Unternehmensfinanzierung, which has its origin in the United States.
A goal of the paragraph financings is possible a turnover-congruent financing in combination with a balance bilanzverkürzung as well as an insurance against the loss of demands in place of a consumption credit insurance.
Often in the Full service Absatzfinanzierung in such a way specified also service tasks of the demand collection are fulfilled.
The paragraph financing as demand sales by financial establishments means the assumption of the loss risk of the bought demands as well as the assumption of the accounts receivable, reminders and the collection. The invoice amount is paid fees and an addition less the interest, for the loss risk, which is named guarantee commission.
Absatzfinanzierunginstitut - the Absatzfinanzierer - (in Germany often subsidiaries of a bank) buys the demands of its client after submission of the calculation copy (or EDP-technically) and writes to this the invoice amount immediately well. Usually between 10 and 20 per cent of the claim amount for safety reasons will retain. The Absatzfinanzierer accepts so the risks of the demand loss (Delkredererisiko) and exercises so also tasks of a credit insurance.
The client usually dissolves his short term commitments with the won liquidity and shortens so its balance.
The Absatzfinanzierer finances itself on the one hand by a turnover fee, on the other hand by interest, which must be paid up to the payment of the invoice amount on the part of the garnishee by the client. In practice there are further fee models.
The Absatzfinanzierer purchases in principle not each demand, but examines the garnishees for soil quality and is limited with negative result to the pure collection of the invoice amount.