Definitive invoice purchase

Using this product, the factor purchases receivables definitively from a business.

 
For clients that apply IAS/IFRS and wish to maintain predetermined receivables turnover standards, liquidity ratios or ratios of working capital as a proportion of total assets, assigned receivables can be removed entirely from the financial statements. Through a definitive invoice purchase, a company transfers all of its credit risk and late-payment risk to the factor.

 
WHO IS IT FOR

Medium and large companies that supply other businesses or the public administration.
 
BENEFITS

  • All the benefits of non-recourse factoring.
  • Eliminate receivables from the financial statements through definitive purchase (IAS).

 
COST

The cost of the service usually comprises an all-inclusive purchase price that takes account of three components:

  • the rate applied to the amount of receivables sold for their entire forecast duration;
  • a management fee for the factor’s servicing operations;
  • a non-recourse fee for guaranteeing the receivables.

 
USEFUL DOCUMENTS FOR ANALYSIS AND DECISION-MAKING

  • Portfolio with list of proposed names for recourse factoring and relevant amounts.
  • Supply contracts, tender notices, orders.
  • Last two annual financial statements and provisional report for the year.
  • Certificate of good standing, articles of incorporation and association.
  • Documentation showing full tax compliance.
  • List of bank credit lines.

 

Contact us and we will find the best solution for your business.

 

Other solutions of support with receivables