We make the securitization of trade and consumer receivables stream lined, and more cost-effective with efficiency, enabling clients to finance at rates well below their corporate rating equivalent through the use of insurance instruments.
Our extensive automated reporting capabilities provide significant comfort to lenders, enabling clients to maximize the rate against their receivables portfolio.
- Facilitated transactions ranging from $1 million to $1.7 billion for companies with ratings ranging from investment grade to ‘Caa’;
- Facilitated transactions for receivables denominated in 58 currencies, with financing in 11 currencies; and
- Committed funding for transactions of less than $25 million.
An accounts receivable securitization facilitated can offer:
Better Pricing – We can access financing from both new and existing client funding relationships to ensure the best possible transaction pricing;
Maximum Liquidity – We work closely with key constituents to optimize rates based on a granular analysis of receivables pool performance;
Off-Balance Sheet Treatment – achieved off-balance sheet treatment under GAAP and IFRS, and has a proven ‘one -stop’ IFRS off-balance sheet solution;
Diversity of Funding Sources – get access to funding via more than 50 banks and institutional lenders, including committed funding available for securitization transactions of $5 million – $25 million;
Back-Up Servicing – Where required, our reporting processes, partners and technology enable us to offer the full range of back-up servicing capabilities, from ‘cold’ to ‘hot’.
- Securitization is a mechanism for companies to raise capital against portfolios of specific receivables on a non-recourse basis.
- Transactions typically involve a one-off or periodic legal “true sale” of the receivables to a Special Purpose Vehicle (“SPV”).
- The SPV, in turn, raises funds for a portion of the total value of the receivables, using the receivables as collateral.
- The seller receives the proceeds raised by the SPV initially, with the balance payable as the receivables collect.
Benefits for the originator of a securitization transaction include:
Lower all-in cost of funds;
Liquidity maximization;
Diversification of funding sources;
Minimal restrictive and financial covenants;
Other assets not encumbered;
Risk mitigation;
Potential for off-balance sheet treatment.
