Deferred Purchase
A Deferred Purchase arrangement is similar to Collection Factoring in that Milberg takes over all credit functions, and collections and receivables bookkeeping are also outsourced to Milberg. As receivables are collected, Milberg credits the client’s account and remits monies to the client on all approved accounts.
Similar to Collection Factoring, if a customer should go bankrupt or can’t pay its bills, Milberg pays the client. Milberg never takes title to the receivables, though, unless and until an account debtor goes bankrupt or is financially unable to pay its bills.