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Monitor your Accounts Receivable in Asset Securitisation
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Welcome to Global Backup Solutions Limited!
Why Back Up Services?
Receivables securitization is a well-established funding method whereby assets such as trade receivables are packaged, underwritten and sold in the capital markets in the form of asset-backed securities
Cash generated by those assets will be used to service the securities that were issued.
Banks or firms structuring these transactions offload the debtor risk
Sometimes via credit insurance more often by applying a haircut to the amounts they finance
Similarly they cover dilution / fraud risk by applying a haircut to financing amounts
Yet in all cases they rely on the Seller (or ceding company) to collect receivables as they fall due
Banks and asset managers are not able to collect themselves, hence being at a risk if the Seller is no longer able to collect, particularly in case of insolvency
Standby services / Back-Up Servicing offsets this weakness by activating a third-party collection process and monitoring the portfolio performance.
Global Back-up Solutions is ideally positioned to perform this task.
What is Back-Up Servicing
It is a protection offered to Asset-Backed transactions, through immediate collections upon activation.
When a company (seller) securitizes client receivables in exchange for a immediate cash inflow, a SPV is using future debtors payments to remunerate investors.
A debt collector shall be ready to liquidate the portfolio in case of an early termination of the SPV / inability of the seller to perform collections
This debt collector shall have solid capacity as it is a peak demand. Extensive geographical reach is also appreciated
Working capital is the 2nd largest financial asset class after real estate
The risk associated to the Seller is often underestimated because a stable environment gives time to restructure transactions – time not necessarily available now
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Global Backup Solutions Limited
