Receivables Finance
Release the value of funds tied up in Invoices
Close Working Relationships
Attis Credit Solutions have close working relationships with many of the leading invoice finance and trade finance companies.
Working closely with funders and clients we secure a credit insurance wrap that reduces the overall risk of your portfolio and enables funders to provide more competitive and innovative solutions.
Invoice Discounting
This type of Invoice Finance allows you to release the value of funds tied up in invoices outstanding by converting your trade debts into cash.
This is achieved by assigning the value of your trade receivables to the invoice discounter, in return for 75% to 90% of the total invoice value. Once your customer pays, you will then receive the balance less the agreed charges.
With Invoice Discounting, you manage your own sales ledger, credit control and customer interface – the facility can be undisclosed to your customers.
Factoring
Factoring has all the benefits of Invoice Discounting in terms of a funding solution, along with some additional benefits.
With Factoring, the funder carries out your sales ledger management. They perform all aspects of credit control using a team of professional credit controllers. They maintain all sales ledger records on your behalf and remit statements of account to your customers at each month end.
Factoring can also be provided as a hybrid product where you complete your own sales ledger management.
in support of Receivables Finance
Both Factoring and Invoice Discounting will often seek to bolster the security of the debtor book by seeking to cover the debtors against insolvency.
The benefits of a trade credit insurance policy can be assigned to the lender and offers the following features:
- 90% cover against insolvency or non-payment
- Work in Progress or pre delivery cover
- Export cover on a Worldwide basis
- No premium charged against sales to a UK government agency
- VAT excluded from premium
- Independent of the funder and therefore transferable between lenders
- Binding contracts cover available
- Access to your nominated credit insurer therefore receiving greater business intelligence on your sales ledger with an ability to challenge credit limit decisions.
Why use Receivables Finance?
Benefits of receivables finance may differ depending upon sector / country though essentially they are:
- Risk reduction – Risk around insolvency is, in essence, mitigated by the financier, recourse depending.
- Improves a company’s working capital position.
- Potential for a competitive advantage by allowing longer payment terms with customers.
- Financing method – unlike debt which doesn’t affect gearing ratio and / or other loan covenants.
- Lowers working capital days
In summary, credit insurance underpinning a funded solution lowers the overall risk of the portfolio. Rather than having various customers each with a different risk grading you have the insurers grading which in most cases is better than the customer base itself. This therefore facilitates increased capacity, improved pricing and provides a competitive advantage to support growth aspirations.
If Receivables Finance is of interest to you, please contact one of our team who can understand your requirements in greater detail.
What Our Clients Say
Operations Director – £200m Energy Provider
All Steels Trading Ltd
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