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Funding the factor

Over the last few months we’ve seen a steady increase in activity aimed at fund-the-factor programs and the provision of liquidity to support factor advance rates. More often than not, these programs are credit insured, providing protection to the funder in the event of Seller and/or Obligor default.

February saw the first in a number of scheduled GFM releases aimed at enhancing our support for fund-the-factor receivables backed finance programs, starting with the launch of a dynamic Seller Statement, the ability to view Seller specific analyses and click-through’s that reveal Seller specific Obligor relationships.

Further releases will provide additional tracking and monitoring of factor advance rates and the incorporation of new Seller specific delinquency, default, dilution and advance rate eligibility tests.

This increased Seller focus is underpinned with extended data collection from factor systems and the systematic DUNS matching and sanctions checking of Seller records. As usual, Global Finance Manager provides transaction certainty by pre-testing receivables eligibility and establishing a daily pool of eligible receivables. Funding Point then applies the funding program parameters, manages program capacity and purchases (or assigns in an ABL transaction) the selected receivables.

Reporting is issued according to factor, insurer and funder requirements and real-time graphical analysis provides program performance metrics and granular receivables visibility.

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