When it comes to credits and debts, we are always moving in very unclear territory. This is because you do not always have the necessary knowledge to deal with certain situations and you risk making mistakes. Precisely for this reason, we are going to analyze what we mean when we talk about bad debts short term loans.

Furthermore, it must be emphasized that, today, what is the tax practice also speaks of the non-collectability of a credit when the creditor can provide documented proof and with certain and precise elements that leave no room for doubt. In this case, we are talking about credit recovery activities that have had a negative outcome; there is talk of proven insolvency of the debtor; there is talk of unavailability of the same and, finally, of insolvency procedures such as bankruptcy, debt restructuring agreement, etc look at more info.

It is a very common operation, which has replaced the discount of bills and requires the bank to ascertain the economic and financial conditions of the company before crediting the sum. corresponding to the value of the documents presented.

Factoring

The factoring is  aimed at the business world  and is a bank instrument governed by a contract by which a company  sells its receivables , current and future,  to a specialized company  with the goal of getting instant cash. The factoring company, for its part, has the task of managing the assigned credit, administering it, and takes care of the collection and advancement of the credits before they expire.