The sale of the debt transfers ownership of the debt to the postman, the factor having all the rights attached to the claims.   As a result, the debt becomes the factor`s asset, and the postman obtains the right to obtain payments made by the debtor for the amount of the invoice, and he is free to wager or exchange the asset without credit without any undue constraint or restriction.   As a general rule, the debtor is informed of the sale of the debt, and the postman invoices the debtor and makes all the recoveries; However, the non-notification factor by which the customer (seller) withdraws accounts sold to the postman as a factor agent also intervenes. The agreement is generally confidential because the debtor is not informed of the assignment of the debt and the seller of the debt withdraws the debt in the name of the postman.  If the factor transfers the debt „without recourse,“ the factor (buyer of the debt) must bear the loss if the debtor does not pay the amount of the invoice.  If the postman transfers the debt „with recourse,“ the postman has the right to recover the amount of the unpaid invoice from the seller.  However, all shipments of goods that could reduce the amount of the invoice to be recovered are generally the responsibility of the seller and the factor is generally retained for the payment of the seller for a portion of the debt sold (the „holdback-value of the postman“) in order to cover returns related to the claims in question until the right to return the property is lowered. Factoring as a fact of business life was going on in England before 1400, and he came to America with pilgrims around 1620.  It appears to be closely related to the first commercial banks. However, they have resettled non-commercial financing, such as sovereign debt.  Like all financial instruments, factoring has evolved over the centuries. This has been fuelled by changes in business organization; Technology, especially air travel and communicationless technologies, starting with the Telegraph, followed by the phone and then computers.
They have also fuelled and been driven by common law changes in England and the United States.  Factors often offer their clients four key services: information on the creditworthiness of their potential clients in Switzerland and abroad and, in the event of non-recourse, acceptance of credit risk for „approved“ accounts; Customer payment history (i.e., maintaining the debtor record); Daily collections management reports; and execute the withdrawal calls themselves.