An international group
Successfully securing your non-recourse/off-balance-sheet accounts receivable financing strategies across all of your subsidiaries.
Our international team has already provided expert consultancy and support to major international groups in 37 countries.
International groups' requirements
The benefits of factoring
- A long-term solution
- Option of long-term confirmation
- Off-balance sheet treatment in accordance with IFRS, French GAAP and US GAAP
- Quick set-up (about three months)
- Possible central pooling of cash flow
- Resistant to changes in shareholding
- Fits in with your mobilisation practices for accounts receivable in various countries
A closer look at factoring for international groups
In the special case of a group present in several countries, it may be beneficial to develop a single trade accounts receivable strategy.
This could take on various forms, such as confidential factoring, balance financing or securitisation. A group-wide approach allows for larger-scale fluency of financing methods, economies of scale and many operational savings.
What are the challenges of an international factoring strategy?
Measuring the group’s financing potential
+Organising the project and setting-up the management team
+Successful negotiation and implementation phase
+Business case
Our assignment
Research, tender process and implementation of an off-balance sheet factoring agreement in a unique context (e.g., the March 2020 lockdown period)
What we did
- Research and tender process for factors and credit insurers, in a unique emergency context
- Implementation of a confirmed line of €90m over a term of three years in four countries for nine entities
- Obtaining a confirmed credit line in the middle of lockdown whilst the context was to reduce credit commitments
Background
Aeronautical sub-contractor, held by a private equity fund
Features
- Business activities: aeronautics, defence
- Countries: Denmark, France, the United Kingdom and United States
- Clients: Large clients, aerospace manufacturers
- Type of contract: confidential balance assignment
- Credit line: €90m
- % of financing: 94% of assigned receivables
- Cost: less than 2%
- Term: three years
- Credit insurance: delegated
Aim
To implement a factoring agreement by 30th June 2020
Our added value
- Identifying factors covering all group legal jurisdictions
- Pooling and coordinating the project for a group with several decision-making centres across the world
- Training five finance teams
- Implementing the project promptly
