Corporate receivables-backed funding programmes are most effective when supported by a regular feed of detailed receivables data. The collection and processing of this data forms a critical part of what we do and is crucial to solving the key challenges surrounding these programmes.
Debtor verification, corporate linkage and global credit limit setting present real challenges, particularly in high volume environments, and especially if the debtors are located in diverse geographies. Matching Corporate accounts to Dun & Bradstreet forms an integral part of our solutions.
With best in class Aronova technology underpinning a receivables-backed ABL facility, many of the traditional operational and data visibility challenges are solved. Our technology tracks the changing risk composition of a collateral pool, monitors LTV rates, and crucially, allows a funding programme to be structured with greater certainty and less conditionality.
Today we support many forms of receivable purchase programme, with receivable assets being purchased either by some form of internal or external SPV, or directly onto a bank balance sheet. Many of these programmes operate using securitisation style techniques with dynamic discounting, and can take the form of on or off-balance sheet transactions.
Portfolio-wide programme structures are designed for revolving whole book invoice finance where the discounted purchase price can be fixed or can change from one purchase to the next. Portfolio funding can be associated with on or off-balance sheet finance programmes, and can support the dynamic build-up of cash reserves and expense accruals.
We support selective invoice and selective debtor finance, where the cost of selling an invoice is determined at an individual invoice level and programme operation is largely automated. This is usually associated with on-balance sheet funding, with an advanced purchase price being paid on purchase, and a deferred purchase price being paid on collection.
Following completion of our first receivables finance blockchain transaction at the end of 2017, all of our corporate receivables finance programmes are now blockchain compatible and could be written using distributed ledger technology.
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