PROGRAMme SERVICES

For 20 years, we have used DEMICA’s deep domain expertise and continuously improving technology platform to enable our clients to seamlessly meet even the most complex reporting and back-up servicing requirements across jurisdictions.

Contact Us
If you would like to speak to us about program services, please contact
Tim Davies
— Managing Director (Europe) - Working Capital Solutions
+44 (0) 20 7450 2502

Overview

Our programme services solutions help corporate clients that have already agreed terms with their preferred trade receivables securitisation funder and financial institutions requiring third party programme management. We specialize in project managing the transaction, implementing and managing automated reporting and providing warm back-up servicing on complex, multi-jurisdictional programmes.

Our clients often have to deal with a variety of underlying ERP systems, stretched finance teams, different accounting policies and consolidation procedures – all factors which can mean they struggle to surface the underlying data and carry out the complex calculations required to meet their reporting obligations in a receivables finance programme. DEMICA’s platform and our highly experienced team solves these problems and takes a client live on time every time.
 

Structure

Our project management service utilizes the same proven team, processes and experience that we use on our own funded programmes to support clients that require additional resource and expertise to go live.


Our reporting service starts with planning the implementation of the programme. Typically, we:

  • Advise the client how to maximize their funding availability. We manage aged debtors and reducing dilution reserves using invoice and credit note level analysis and also release value for receivables currently considered ineligible.
  • Project manage the implementation of the reporting requirements.
  • Advise the client on how to extract the required data from their internal systems
  • Take data from each of the underlying operating subsidiaries in whatever data structure the client can provide (which may differ by subsidiary).
  • Review how each subsidiary handles issues such as invoice write-offs, value adjustment and invoice identifiers.
  • Daily during the testing period, we generate all the necessary reports analysis that the funder and the client require and assess the necessary adjustments and overlays.


The ongoing reporting package is always tailored to the funder's requirements, but usually consists of:

  • An overview of the performance of the sales ledger.
  • An invoice level breakdown of sales, collections, dilutions, unallocated cash etc.
  • Ageing analysis of the portfolio at a funded and/or total level.
  • Ineligible and Exclusions analysis.
  • Offer or Acceptance letters and a purchase list supporting the individual receivables sold by the client to the funder.
  • A funding report calculating the advance rates on the programme.

 
Our warm back-up servicing, offered as package with our reporting solution, eliminates the unnecessary duplication of time and costs of a separate services. Our technology platform interfaces with world class collection agencies which automatically handle the switch to hot servicing if required. 

We are proud of our reputation of always successfully enabling our client and their funders to go live, even in the most complex corporate and financing scenarios.

The DEMICA Advantage

For Corporates

  • Confidence that comes from partnering with a firm that has powered 75 trade receivable securitizations
  • Expertise of bank structurers to maximize advance rates
  • European location – minimal journey and time zone separation from client subsidiaries is key to rapid, problem-free implementations
  • Automated reporting to minimize clients’ ongoing resource commitment
  • Independent platform not tied to any one funder – this simplifies switching

For Funders

  • Industry-leading risk mitigation platform built on daily reporting and an independent record of every invoice
  • Interfaces with trade credit insurers to pre-check that all receivables purchased will be within limits
  • Interfaces with verification and auditing firms to automatically confirm ongoing compliance
  • Bank grade settlement & payment modules to seamlessly manage cash transfers

Program Services FAQs

  • What type of trade receivables programmes does DEMICA support?
    DEMICA’s platform was originally built to run the treasury departments of banks and large multinationals such as Siemens with their complex financing structures. This heritage ensured that we developed an incredibly flexible receivables and payables offering and have yet to come across a programme that could not be easily onboarded to our platform.
  • Who are your typical clients for reporting services?
    DEMICA's clients are multi-nationals with revenue of $250m to $40bn that have a receivables financing programme purchasing receivables from subsidiaries in 4-16 countries. Programmes are typically multi-currency with total facility size of $25m - $750m.
  • Have you ever failed to implement a programme?
    No. Only one program that DEMICA has been appointed as the reporting agent has failed to go live and the causes related to the deteriorating credit standing of the client and its relationship with its bank partner.
  • Can you provide references?
    Yes. We are fortunate to have a large number of clients willing to act as referees for our expertise and technology.

Solutions

DEMICA's purpose is to meet the working capital challenges facing today's businesses. We use our expertise, world-class technology platform and access to deep pools of capital to efficiently deliver $25m to $750m+ programmes that our client's treasurers seek.

FIND OUT MORE
Contact Us
If you would like to speak to us about program services, please contact
Tim Davies
— Managing Director (Europe) - Working Capital Solutions
+44 (0) 20 7450 2502