In the US, this term refers to all financing that has corporate assets as its basis. In Europe, the term was coined by individual factoring companies in connection with certain forms of receivables financing. The ABF process can be outlined as follows:

• Purchase of receivables due from individual customers.
• The selected customers belong to the A‑customers with regard to the amount of receivables.
• The management of receivables remains with the factoring client (in-house).
• The customers of the factoring client are not informed about the sale of receivables (silent procedure).
• Customers continue to pay to the previous bank account.
• The factoring client only submits the receivable balances of the debtors included in the factoring procedure for the factor to purchase the receivables.
• The prepayment rate is usually 100%.

The factors’ assumption of the del credere risk is not a priority, but can be included.