Services

Receivables Financing

GSCF services programs based on Accounts Receivable (AR) of companies. AR Financing programs involve an originating company (Vendor) and its customers (Buyers). These programs can be financed by a third-party Funder and might include Credit Insurance coverage.

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  • GSCF is at the centre of programs, ensuring that data and processes flow seamlessly
  • GSCF can act as program servicer towards the Funder or the Vendor
  • Credit Insurance could be established by the Funder or the Vendor
Distribution Financing

Distribution Financing

How does it work?

  • Distribution Financing is a comprehensive solution that establishes a win-win scenario for the Vendor (sponsor) and it’s chosen Buyers
  • The Vendor sells the receivables to the Funder on a true sale basis and collects them earlier. The Buyers obtain extended payment terms, paying the Funder upon an extended maturity date
  • These programs are typically credit insured and require some level of recourse from the Vendor
  • The Vendor and Funder execute a Receivables Purchase Agreement (RPA) and the Buyers sign a Payment Agreement
  • Distribution Financing is also known as “Channel Financing” or “Sales Financing”

Benefits

  • Increase competitiveness by offering Buyers an extension in payment terms
  • Boost sales and enhance customer relationships
  • Improve liquidity, and that of Buyers, by accelerating receivables collections and extending Buyer payment terms off-Balance Sheet
  • Working capital enhancement for Vendor (via reduced Days Sales Outstanding or DSO) and for Buyers (via increased Days Payable Outstanding or DPO)
  • Reduce credit risk on Buyers

Who can use it?

Companies with high-volume recurrent sales to a portfolio of Buyers, looking to grow sales through enhanced competitiveness whilst maximizing liquidity.

Factoring
Receivables Servicing