Debt purchase
Within the framework of debt purchase the creditor sells his claims with all rights and responsibilities, for instance, to a collection enterprise. Contrary to factoring, debt purchase only applies to defaulting receivables (i.e. commercially non-demandable receivables) or already titled and nonsuable debts.
The original creditor benefits from debt purchase by saving administrative costs and capacities. He achieves immediate liquidity and no longer has the worry of collecting his outstanding receivables.