Trade Receivables Securitisation

Trade Receivables Securitisation

What is Trade Receivables Securitisation?

Typically a receivables purchase agreement is signed between a company and Special Purpose Vehicle (SPV) which in turn will issue securities or notes to investors the proceeds of which are used to fund the purchase. Investors will typically commit to purchase the notes for up to five years against a formula that takes into account dilution and loss history. It is ideal for companies with large numbers of customers and can aggregate receivables from operating companies across different geographies and business units.

How does Trade Receivables Securitisation work?

Trade Receivables Securitisation

What are the benefits of Trade Receivables Securitisation?

Off-balance sheet structures, which improve balance sheet and operating cash flow metrics.

Low funding costs, with risk underwritten to the historic performance of the portfolio rather than the credit rating of the selling entity.

Companies can create large global facilities, incorporating jurisdictions that might be challenging to finance through traditional Asset-Based Lending structures.

Trade Receivables Securitisation

How we helped TreviPay

Learn how a Trade Receivables Securitisation programme powered by Demica unlocked $215m for fintech, TreviPay.

TreviPay case study

Why run your Trade Receivables Securitisation with Demica?

  1. Complimentary feasibility analysis: Demica will conduct a feasibility study at no charge and provide a simple cost-benefit analysis and recommendation.
  2. Structuring expertise: With the largest dedicated structuring team in the market we can work with you to extract receivables data and build a sophisticated model to review with investors.
  3. Funder sourcing: With 20 years’ experience running programmes on our platform we have an unparalleled relationship with the global investor community.
  4. Managed implementation: We have experience working with 200+ ERPs and are able to combine structuring, implementation and project management to drive successful execution.
  5. Platform automation: Our platform gives you real-time access to your underlying portfolio data and programme performance. 
Trade Receivables Securitisation

Arrange a call with our experts