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.