Assets & Funding Management
Unlock working capital tied up in your assets to invest into the future
To meet the changing needs of corporates, arrangers, banks, investors, and regulators, asset based funding transactions are growing more complex. Greater transparency, data integrity, detailed processing, and reporting now play key roles for securitization and asset-based transaction participants. What’s needed is a reliable software to manage complex refinancing processes and fulfill mounting compliance mandates.
Gain full visibility into all your funding transactions.
Asset Based Funding is a financing method in which a company secures a loan or line of credit using its assets as collateral or even sell the assets to investors to get appropriate funding. Assets can be trade receivables, loan or leasing contracts, equipment, real estate or any other kind of company’s receivables of value.
The basic principle of Asset Based Funding is that the lender evaluate the quality and value of the assets, and not the corporate itself, and provides funding based on that asset value. Asset Based Funding is commonly used by corporates with valuable assets, allowing them to unlock capital tied up in those assets. By leveraging these assets, businesses can access the funds needed to support operations, invest in growth opportunities, or address financial obligations.
This involves using receivables as a collateral of a loan to obtain financing. Lenders advance funds based on the value of outstanding invoices.
In Forfaiting, future receivables based on lease or loan contracts can be sold to investors to get liquidity and reduce risks on own balance sheet.
In Factoring, directly sale outstanding invoices to a factor, house bank or investors to get needed funds.
Sale a portfolio of receivables based on leases, loans or invoices to an SPV for transformation to securities backed by assets (ABS). Key figures, waterfall calculations and complex reporting required by Investors must be provided.
Equipment invoices of an OEM to an approved distributor, will be transformed into a loan within a line of credit by the lender. The lender evaluates the value of the inventory and provides funding based on a percentage of its appraised worth.
Corporates or OEMs can leverage their equipment, machinery, or vehicles to secure financing. The lender assesses the value of the equipment and provides a loan based on its worth.
Discover our solution and find out how it can help you to streamline your financing processes and manage your assets.