Trade credit insurers insure against the risk of non-payment. Most insurers also offer additional products, such as collections services, buyer/country rating, portfolio assessment and securitisation.

A factoring company buys receivables. It may also be used to outsource some of the activities of the credit department. The purchase of receivables ensures payment at a fixed date and makes it possible for companies to fund all or some of their invoices and thus cover their operating capital requirements; obtain cover against their customers' insolvency; obtain payment of receivables with shorter payment terms; obtain information on their customers' financial soundness; outsource or vary their administrative expenses; and optimize current assets and liabilities.

A factor company does not provide cover against non-payment on its own. Many factor companies partner with Receivables Insurance companies with regard to providing this cover.