Using this product, IFIS Finance offers businesses the definitive purchase of receivables.
For clients that apply the financial reporting standards IAS/IFRS or US GAAP and wish to maintain predetermined receivables turnover standards, liquidity ratios or ratios of working capital as a proportion of total assets, the assigned receivables can be entirely written off from financial statements. Through a definitive purchase, a business can transfer all of its credit risk and late-payment risk to IFIS Finance.
WHO IT IS FOR
Medium and large-sized companies that supply other businesses or the public administration.
- All the benefits of non-recourse factoring.
- Eliminate receivables from financial statements through definitive purchase (IAS).
The cost of the service usually comprises an all-inclusive purchase fee that takes three elements into account:
- the rate applied to the amount of receivables sold for their entire expected duration;
- a management fee for the servicing carried out by IFIS Finance;
- a non-recourse fee for the Factor’s assumption of the risk of non-payment.
USEFUL DOCUMENTS FOR ANALYSIS AND DECISION-MAKING
- Portfolio with list of proposed names for recourse factoring and relevant amounts.
- Supply contracts, tender notices, orders.
- Last two annual financial statements and provisional report for the year.
- Articles of incorporation and association.
- Documentation showing full tax compliance.
- List of bank credit lines.
Are you interested in knowing more about definitive invoice purchase? Contact us and we will find the best solution for your business.