Factoring Portfolios

Overview

We support increasing numbers of factored receivables finance transactions, or ‘fund-the-factor’ programmes, where the funder finances the advance rate paid by the factor to the seller.

These 3-tier transactions, where the seller is one step removed compared with Corporate receivables programmes, dramatically increase the importance of our automated seller and debtor verification systems. Likewise, the high volume nature of these environments makes the automatic setting and monitoring of debtor global credit limits a crucial part of a receivables finance solution.

3-tier programme visibility

Our factoring funding solution provides true clarity over the complex, 3-tier nature of factoring portfolio funding and the intricate relationships between multiple sellers and their debtors. This system introduces a seller statement, the ability to analyse in detail the relationships between seller & debtors, seller specific performance analysis and seller targeted eligibility criteria.

Seller verification & analysis

This 3-tier nature of factored receivables finance transactions makes seller verification and ongoing seller performance monitoring vitally important. Seller details are systematically matched to Dun & Bradstreet company records and users can track seller performance at an individual seller, seller group or portfolio level.

Seller & debtor eligibility testing

Our systems include an extended suite of eligibility criteria, built specifically to support a factored receivables programme. Delinquency, default and dilution eligibility tests and aggregate funding caps can be applied at an individual seller level, providing the funder & insurer with added flexibility, control and certainty over the funded receivables portfolio.

Advance rate tracking

The information provided to us by factors additionally includes invoice level advance rate information, which we then monitor and track. Seller and portfolio advance rate testing can form part of the factored receivables eligibility waterfall, and onscreen displays provide users with granular visibility of programme advance rates across sellers, debtors and individual receivables.

Recourse & non-recourse structures

Depending on the requirements of the funding programme, we can support recourse or non-recourse structures. In both instances, we carefully track debtor, debtor group, seller and dilution risk and within non-recourse environments, different forms of credit insurance protection can be applied.

Other things we do

What our clients think ...

"Over a short period, Aronova has become a valued partner and a key enabler for many of our solutions.  We have found them responsive, flexible and creative when it comes to fulfilling the needs of our programmes.  Their systems are powerful and accurate, but simple and intuitive to use, which has led feedback from clients.  Aronova looks to build long-term partnerships and I look forward to growing with them."


Edward Till – Levantor