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That's a very common form of trade finance worldwide, and is usually called "invoice discounting" or "receivables factoring" https://tradefinanceanalytics.com/w

• denton-scratch 5y ago
  For an overdue bill, the factor is called a debt collector. But it's roughly the same business.
• Fnoord 5y ago
  There's collection agencies with no cure no pay (who add up their own fee upon the debt), and there's debt traders who buy a debt for a lower price and who then harass the person who (allegedly!) owes the money. Its a scoundrel market, IMO. Heartless, Ellisonish. County court bailiff (gerechtsdeurwaarder) is a government variant which has legal merit (unlike the other 2). Still, doesn't mean they are morally right (and those in debt have a harder time to defend themselves, legally), but at least it does have that legal merit. The problem is that, yes, often people who are in debt are in the wrong and should pay it, but there's all these corner cases and cases where the debt is incorrect, its an underlying dispute, it was started because of bad communication, etc (been there, done it).
  • NoboruWataya 5y ago
    I don't think that's what the parent comment is talking about. It's talking about selling non-defaulted invoices as, essentially, a form of secured financing for the vendor company. The invoices are highly likely to get paid in the ordinary course and usually the company selling them even continues to "service" them, ie, to liaise with the underlying customer and receive payment. It's a very different business to debt collection.