The handling and settlement of complex insurance claims with the involved insurers may go on for several months or longer. As a result of this the affected company can be driven into an existential endangering liquidity squeeze. In such cases, the Loss Factoring represents a good option for the assurance of liquidity and the achievement of the company goals. By Loss Factoring, there exists the possibility to substantiate booked costs/revenues as accruals within the balance sheet at the end of the fiscal year.
The Loss Factoring is an effective way to improve the cash flow situation short-termly for companies that are situated in restructuring or insolvency situations.
Each insurance claim is to be evaluated individually to decide whether and which type of the Loss Factoring is feasible.