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