RECEIVABLES FINANCE

Our flexible receivables finance programmes enable multinational companies to release cash locked in their global debtor books with the potential for off-balance sheet accounting treatment. Our technology platform, combined with professional structuring, minimizes risk for our funding partners while enabling our clients to achieve optimal advance rates and the lowest cost of funds.

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

Overview

The global receivables finance market is worth over $4tr and companies are increasingly turning to it to fund their growth and manage their working capital. Financing receivables via traditional and alternative investors has never been such an important tool in working capital management.

There are multiple products available, from invoice discounting and factoring suitable for smaller companies to receivables securitisation and asset-backed loan programs suitable for larger firms. DEMICA focuses on clients requiring $25m to $750m of funding and fits the structure to our clients' circumstances.

Structure

We start by analysing the composition of the debtor book and how cash collection has performed over time. The analysis identifies which receivables either cannot be sold (and are excluded from a program) or cannot by cost-effectively financed (and so are ineligible).

The structure may include enhancements or reserves to cover expected losses and dilution on funded receivables – unutilized reserves are released to the client at the end of the program. The chart below shows how these three factors impact the final advance rate.

The DEMICA Advantage

For Corporates

  • Higher advance rates
  • Lower cost of funds
  • Expertise built up over 12 years of program management
  • Off-balance sheet treatment under IFRS and US GAAP (subject to circumstances)
  • Access to diverse and proprietary pools of capital

For Funders

  • Opportunities to deploy capital efficiently and in scale
  • Best-in-class risk mitigation has led to zero loss for funders in 12 years
  • Excellent risk-adjusted returns
  • End-to-end programme management

Receivables Finance FAQs

Supply chain finance

Our innovative supply chain finance solutions enable our clients to extend days payable outstanding, capture early payment discounts offered by suppliers or help their suppliers secure lower cost funding, all while improving their own margins. We specialize in non-investment grade programmes and those that operate cross-border.

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