Working capital management

Four excellent reasons to sell receivables

More security

Boost your liquidity
Transfer credit risks

Better creditworthiness

Increase equity ratio
Reduce working capital requirements

Higher sales

Gain new customers through longer payment terms
Minimise early payment discount losses

Lower purchase prices

Take advantage of early payment discount income

Sell your outstanding invoices to a broad investor base - to the benefit of your bottom line. You are completely free to decide which invoices you sell - and when. IPUs are purely optional. There are no framework agreements. Your company acquires more business flexibility.

Advantages of TrustBills

Bank
  • Several weeks of ramp-up duration
  • Lengthy and cumbersome credit processes
  • Often far-reaching collateral necessary
  • Suppliers are price takers
Traditional factoring
  • Several weeks of ramp-up duration
  • Obligation to sell trade receivables
  • Limitation of maximum payment terms
  • Commercial credit insurance necessary
  • Security deposits held by factoring company
  • Suppliers are price takers
Invoice discounting platforms
  • No true sale, but loans
  • Extension of the balance sheet and deterioration of the equity ratio
  • No transfer of credit risk
  • Debtor management remains with the supplier
Asset-Backed Securities
  • Very long ramp-up duration
  • Expensive implementation
  • Long-term framework contracts
  • Preferences of capital market investors must be met
  • Suppliers are price takers
  • Fast sign-up within days
  • Auction runtime of 1, 3 or 7 days
  • Entrepreneurial freedom: Supplier decides whether, when or to what extend to sell trade receivables in a true sale
  • Supplier sets the minimum price / sales prices are market prices
  • Supplier determines type of assignment (disclosed or undisclosed) and payment method
  • Irrevocable payment undertaking from the debtor is optional
  • Improvement of equity ratio

Auctioning receivables: on your terms or better

Initial situation

Invoice amount:
100,000 euros
(with a Days Sales Outstanding (DSO) of 45 days)

Own starting price:
99,400 euros
(discount: 0.6 % compared to all-in-one-factoring margin)

Auction

End of auction

Immediate payout of the second-highest bid plus an increment (one currency unit).

In this example you will receive:
99,670 + 1 = 99,671 euros

Coming soon: Early Payments

New feature for even more flexibility

With Early Payments, suppliers can optionally offer their open trade receivables to their debtors for early payout, who then obtain individual cash discounts. If no Early Payment is agreed, the supplier can offer their trade receivables to a large investor base. Thus they are independent from the debtor’s liquidity or their willingness to make an early payment.

By using their liquidity with Early Payments, debtors gain (additional) cash discounts on their liabilities. In times without excess liquidity, other investors, i. e. institutional investors, can support suppliers by providing financial backings.

External financing by means of auction or Early Payment by the debtor? Suppliers and debtors can individually decide for each invoice, which better suits their company’s current situation.

Quantity management through automation

ERP import

Excel upload

Automated import

Import by integration of ERP systems such as SAP™ or with an Excel template

Automated auctions

Automated setting of auction parameters for large quantities of receivables

The process

1

Sign-up

Within 10 days

2

Upload

Upload invoices as required. Individually or via interface

3

Auction

Set auction parameters such as minimum price and time

4

Assignment

Obtain the full auction price immediately and write off the receivable

Or make an appointment with our client-solutions team

Give us a call or send us a message:

+49 (0)40 257 660 650 solutions@trustbills.com

Marcus Wohlgeschaffen
Senior Vice President
Business Development & Operations

Petra Suetter
Senior Vice President
Client Solutions

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