A/R SECURITIZATION

 Large multinational corporations that have gone global with worldwide sales need a cost-effective, creative financing program that provides greater operating flexibility and broader financing options, and at a lower cost, than Factors and Asset Based Lenders.
  1. Do you have foreign A/R and do business in other countries?
    If your business is selling in several countries, and does business in Canada, Mexico, Korea, Japan, Taiwan, Germany, Australia, England, France, and many other countries, an A/R securitization allowing percentages of A/R from each country can be structured.
  2. Do you do business in more than one currency?
    If sales or payments take place in multiple currencies the deal lends itself to accounts receivable securitization.
  3. Do your customers have stronger credit ratings?
    If your company, for example, is a staffing company, trucking company, or container shipping company with a B or C credit, but your customers are A credits (e.g. Samsung, Vizio, Western Digital, Broadcom, Qualcomm) the securitization is structured and rated off your customers' credit ratings, not yours.
  4. Do you sell on long terms such as extended due date terms?
    In an A/R securitization, you lend off the due date, not the invoice date. So, the deal can be structured as 90 days past due date. If you sell on 60 day terms it will give you eligibility of 150 days on your Accounts Receiveable.
  5. Are you a foreign company doing business in Europe?
    If you're a foreign company in a country that has struggled with international credit ratings, such as Thailand, Vietnam, Indonesia, Malaysia, Philippines, Brazil, Columbia, Mexico, Chile, etc., but your sales are to Europe, USA, or Canada, your A/R can be securitized (with an A or AA rating) depending on the quality of your customers...keeping your borrowing costs low.
WOULD YOU LIKE MORE INFO?
Accounts Receivable Securitization is a fairly complex financing arrangement that has  difficult transactional elements to it.

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EDUCATIONAL LINKS
The following links are resources to give you a more definitive understanding of how accounts receivable securitization works, and how it might be of benefit to your parent and subsidiary companies.