Forderungsabtretung

assignment of a claim

noun for-deh-ROONGS-ahp-treh-toong Rare

Also means

transfer of receivables

Usage Note

Forderungsabtretung (Zession) is the legal transfer of a creditor's right to receive payment to a third party. Banks use it as collateral for loans; factoring companies buy Forderungen at a discount through systematic Forderungsabtretung.

Examples

"Zur Absicherung des Kredits unterzeichnete die Firma eine Forderungsabtretung."

Natural Translation

To secure the loan, the company signed an assignment of its receivables.

Literal Translation

To-the securing of-the loan signed the company an assignment-of-claims.

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