 Deal Structuring
Finacity structures the most cost-efficient securitization program possible given a client's objectives and circumstances. We then solicit bids from several appropriate funding sources in order to obtain the lowest cost of capital, and to expand the client's network of funding options. If a client so desires, we may also explore alternative funding options for receivables or other asset classes that fall outside the scope of the securitization itself. As a third-party, Finacity is able preserve its client's banking relationships while evaluating funding sources outside of those existing relationships.
When appropriate, Finacity structures a program that includes a proprietary trade credit insurance policy developed in collaboration with strategic partner Euler Hermes (other insurers can be accommodated as appropriate). This increases liquidity by allowing advances against certain foreign receivables and weaker credits that would otherwise be ineligible or excluded from the securitization program altogether. The Euler Hermes policy is also employed in some cases to solve the issue of customer concentration.
When required by the funding source, Finacity structures a program that conforms to rating agency requirements, and manages the rating process on behalf of the client.
Program Management
Operationally, Finacity independently tracks a client's account receivables portfolio on a daily basis. Our multi-currency and multi-lingual platform accepts data from virtually any account receivables system, and can combine receivables from multiple divisions, business units, or locations.
The detailed receivable-level analysis performed by Finacity includes verification of suspicious or unusual items, calculations for daily collateral valuation, reserve maintenance, receivable purchases, and payment of fees and interest. We also generate all required daily, weekly, monthly, quarterly, and ad-hoc reports, manage cash disbursals to all parties, monitor termination triggers, and track the historical basis for reserve percentage adjustments.
Finacity's detailed analysis and reporting provides the funding source with greater comfort and insight on its investments, lets us serve as a backup servicer, permits funding as frequently as daily, and allows us to enforce all deal requirements at an item level to ensure compliance with the rating agency and investor. As a consequence, a Finacity transaction typically provides more financing and better terms for the client.
|
