Non-recourse factoring
Optimizing your company s cash flow Our non-recourse factoring solution helps you to optimize your company s key figures in relation to solvency ratio and working capital. When it comes to working capital many companies fail to see the importance of a tied-up capital kept at a low level. A high level means an unnecessary tied-up capital and hence missed investment opportunities. A working capital analysis going after a low level of tied-up capital is a low-cost way of releasing capital for further investments.
Non-recourse factoring conditions The non-recourse factoring solution of AL Finans is a unique product which is based on the following conditions: Debtors must be credit rated and approved by AL Finans every debtor is given a non-recourse limit Preferably trade on a regular basis with established debtors or individual larger claims on chosen debtors. The non-recourse purchase currency will match the invoice currency
The advantages of non-recourse factoring AL Finans offers non-recourse factoring of approved Danish as well as foreign debtors Receivables are purchased by 100% Off balance solution under the terms of IAS* 39 *International Accounting Standard
The advantages of non-recourse factoring Lower interest costs Less bad debts Optimized business procedures
The advantages of non-recourse factoring Non-recourse factoring provides specific advantages if your company is looking for: A low credit risk An increased cash flow A slimmed balance sheet Optimized key figures on solvency ratio and Working Capital
Frequently asked questions How do we send our invoices to AL Finans? The invoice system of AL Finans will be integrated into your finance department. By each issue of an invoice, a copy will be sent directly into our system for processing. Hereafter payment to your accounts will take place. Who is the target group for non-recourse factoring? Larger companies who are dealing with working capital management seeking to optimize their composition of balances and their solvency- and liquid ratio. A nonrecourse factoring solution makes it possible to lower the unnecessary tied-up capital in debtors and thus achieve an off balance effect. Companies with an indicative annual turnover exceeding at least DKK Mill. 200 or more. Non-recourse factoring implies B2B sales.
Frequently asked questions How to get started? Arrange a meeting with one of our experts. We will go through your company s customer base and other relevant issues in order to estimate the off balance effect of a non-recourse factoring cooperation. How is the cost structure? Invoices will be purchased by 100%. An ongoing calculation of interests and handling- /risk charges will be deducted. How do we get access to our documents? It is easy: As a non-recourse client you will get access to AL Finans Online, where you can easily review your debtors, invoices and your cash flow. At the same time, your customers can log in and see their own debtor accounts, print invoice copies, etc.
Frequently asked questions By how many % will the invoices be purchased? Receivables will be purchased by 100%. A separate security account will be created to meet prospective losses. How fast can we expect to receive payments? The value of the non-recourse invoices will be paid by AL Finans immediately after receipt and processing. Should all our debtors be included in the non-recourse agreement? Yes. In principle all creditworthy debtors, who are granted credit, should be included. With a non-recourse factoring cooperation you will obtain the benefit of approaching only one agreement and one system in which all invoices and debtors are united. At the same time you will be guaranteed an off balance solution under the terms of IAS 39.
Arrange a meeting Fill out the form and we will contact you to arrange a meeting about non-recourse factoring Non-recourse factoring clients Existing factoring clients can access relevant information by using the factoring online bank, AL Finans Online. Debtors If you have received an invoice or a statement of account from AL Finans, it is possible to gain access to your account by using AL Finans Online. It is also possible to see invoice- or credit note copies. Please use the unique user ID and password stated on our letters.