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Pro soluto IAS 39

Who is it for?

Our “Non-recourse” factoring agreement, which follows the accounting rules under “IAS 39”, is intended for businesses of high standing, listed companies, and multinational corporations.

Target

  • Improve financial ratios and accounts receivable turnover;
  • Actually transfer the following risks:
    • risk of default / insolvency of debtors,
    • late payment,
    • interest rate;
  • Increase working capital;
  • Optimise cash flows and cash management operations.

Payment of consideration

SG Factoring buys 100% of the receivables the seller intends to sell.

The proposal to purchase the receivables is examined after assessing the solvency of the debtors, which shall be transferred based on certain key principles:

  • business information;
  • financial statements analysis.

SG Factoring pays the consideration less factoring fees, interest, and any incidental expenses.
 As these are specific transactions—which may also be carried out an ongoing basis—the transfer of the above risks to SG Factoring takes place when our Firm sends the notice of acceptance of the “Non-recourse” transfer of the receivables.
 SG Factoring is at the disposal of its clients to define together the contract scope that best suits their needs.