Receivables Based Financing

Advantages

Growth

As you embark upon a period of sales growth, the increase in receivables and inventory can place a strain on your cash position. This can be addressed by selling your receivables to obtain an immediate boost to your liquidity.

By selling your receivables, you will then be in a position to expand your growth plans, generating more receivables which can again be sold to further increase your liquidity – you enter a virtuous circle and the financing line can grow with your business.

Increased Profitability and Improved Balance Sheet

With increased liquidity, you are able to pay your suppliers more quickly to take advantage of early payment discounts. You are also able to avoid the prospect of losses on the receivables that you sell as you receive full payment (less costs) no later than 120 days past the due date.

This improves your profit margins, which in turn improves your balance sheet and ultimately the credit rating of your business.

Trade Indemnity

After supplying your products or services, you submit your invoices for sale. Upon purchase, the risk that your customer may be unable to pay is transferred which provides effective protection against insolvency risks and the related bad debts.