Sale of receivables

In the sale of receivables, a loan — for example, your construction financing — is resold. The whole process is also known as factoring. The outstanding receivable from your loan is sold to a third party. This is usually another bank, which then becomes your new lender.

Is the bank allowed to do this? Yes. But. The legislator protects you in the meantime. That means the claim may not be sold to foreign lenders. In addition, the contract must be continued 1:1. But now the question arises: Why are receivables sold at all? There can actually be different reasons for this. Your financing bank:

• merges with another institution and your loan is transferred to the new company

• no longer offers construction financing in the future

• has run into financial difficulties and needs liquid funds

• wants to get rid of loan agreements where the installments are not paid as scheduled