Factoring and Invoice Finance

Demica’s Factoring and Invoice Finance solutions enables corporates to release working capital through the sale of their accounts receivables. Corporates can select to sell invoices from single debtors to whole portfolios and access up to 90% - 100% of eligible invoice value while maintaining control over the collection and servicing of the receivable. Each programme is typically $30m to $150m in size and usually operates in a single jurisdiction. Demica’s Invoice Discounting solution provides low cost, quick & easy to implement, flexible off-balance sheet funding that uses our technology platform to manage multiple programmes. It suits clients that operate in only a few countries, have concentrated portfolios of good quality debtors and value speed and simplicity over the ability to craft a bespoke structure.

Want to know more?

If you would like to speak to us about our solutions, please contact:
Francois Terrade

Francois Terrade

Managing Director - Working Capital Solutions

Languages EN FR GE

+44 (0) 20 7450 2546 Monday to Friday, 08:00 to 19:00 Contact Francois

HOW DOES IT WORK?

Factoring or Invoice Finance enables corporates to access additional liquidity when trading on open account terms, selling individual trade receivables on a true sale basis directly to a funder, decreasing Days Sales Outstanding (DSO) while mitigating customer payment risk. Demica’s Receivables Finance platform automates the selection of approved debtors, manages trade credit insurance limits and provides a single dashboard to manage & report on multiple independent programmes with different funders for each jurisdiction if required.    

While previously an SME product, the combination of simplicity, significant working capital benefits and potentially off-balance sheet financing has made invoice discounting increasingly popular across a wide range of sectors for large corporates.

In addition to working capital benefits, clients are increasingly using it to improve their own customer relationships by offering extended payment terms to drive increased sales, and then mitigating the impact of this by discounting the receivables.

With over 2,000 companies financed with Factoring or Invoice Finance, using Demica’s platform, the company has extensive experience in establishing and managing invoice discounting programmes. The Demica platform provides a valuable bank agnostic solution that works seamlessly with other forms of financing, enabling single & multi-funder capabilities resulting in a significant working capital benefit for corporates.

Transactions can be funded by our clients’ relationship banks as well as a wide range of Demica’s Investor Partners providing flexible funding at the lowest cost of capital.

HOW DOES DEMICA DELIVER THIS?

Demica can undertake several different roles in a Factoring and Invoice Finance programme

ARRANGER

  • Access to global banks, institutional investors, and alternative finance providers 
  • Platform partner to FCI (Factor Chain International) with access over 400 financing firms globally
  • With over $3bn of receivable transactions live, we have a unique understanding of investor appetite 

Advisor

  • Lead advisory services including debtor analysis, portfolio modelling, and project management
  • Conduct transparent funding process providing the best terms to our clients
  • Provided by a large team previously working at blue-chip financial institutions including global banks, major law firms, and rating agencies

servicer

  • Platform bridges multiple ERP & billing systems to create a consolidated shadow ledger
  • Sophisticated rules engine automates the selection of eligible receivables
  • Credit insurance limit management
  • Highly flexible reporting platform provides daily, weekly or monthly reporting

THE DEMICA ADVANTAGE

For Corporates

  • Platform partner to Factor Chain International with access to over 400 financing firms globally 
  • Accelerate cash conversion cycle, improve liquidity and mitigate customer payment risk.
  • Off-balance sheet financing when appropriate

For Funders

  • Full white label solution, if required, with end to end programme management
  • Automatic reconciliation of invoices and payments with credit insurance limit management
  • Opportunities to deploy capital efficiently and in scale with excellent risk adjusted returns

CLIENT TESTIMONIALS

“Demica has developed a market leading platform that enabled us to launch new solutions to our clients including Invoice Finance and Factoring. Demica provided advice, support and the technology to position us as market leader” 

Head of International trade and receivables financing
-- Global Bank

"Demica facilitated the execution of our global receivables programme, enabling us to integrate with their technology platform and consolidate our group receivables through one provider. Demica also acted as placement agent, sourcing financing from their investment partners"

TREASURER 
-- Large European Corporate

Want to know more?

If you would like to speak to us about our solutions, please contact:
Francois Terrade

Francois Terrade

Managing Director - Working Capital Solutions

Languages EN FR GE

Francois has more than 20 years of experience helping corporates and private equity funds across Europe secure working capital solutions in France and in Europe by way of securitisation, factoring or asset-based financing in order to meet their strategic objectives.
+44 (0) 20 7450 2546 Monday to Friday, 08:00 to 19:00 Contact Francois

CASE STUDIES

Illustrating the depth of our client relationships, we have highlighted a few programmes powered by Demica

VIEW ALL CASE STUDIES