50 Years Facilitating Open Account - Trade Finance

Stand by services

This solution enables you to put in place a structural solution so that when you need to escalate the intensity of collection and even manage the financed clients’ ledger, you are able to do so quickly and efficiently.

 

Typically this solution can either be generic or as part of a securitization structure.

 

  • Stand By Services for normal Factoring deals  (So called “warm phase” when a factor requires an international collection network to support them in specific periods of the financing cycle, for example when their risk exposure have increased too much or they are not happy with the collection performance  of their client).
     
  • Stand By Services for Securitization deals where the financed client doesn’t have the required financial strength.  Typically the financial committee of the bank requires a back up service provider which can step in and start the collection activities on the client ledger.  Often this can be where financial triggers, set by the banks during the structuring of the deal, have been breached.

 

How it Works

Stand By Services has 3 distinct phases: Set Up phase – Stand-By phase – Activation phase.

Set up : Set up the required system interfaces, reporting requirements and  collection strategy.

 

Stand By : An initial data quality check of the Accounts Receivable ledger received from the customer and a report back on missing or incomplete information. This phase monitors the financial performance of the client and ensures that the back office is prepared to start the collection activities in case it is necessary to invoke the next phase: Activation (Liquidation phase).

 

Activation (Liquidation phase): In the event of default of the customer (most of the cases is due to bankruptcy), the financial institution will instruct the Stand By solution partner to take over the collection activities of their customer and in some cases also perform the cash application of the received payments.

 

Tariff and invoicing

Backup Servicing is a tailor made solution; therefore there is no standard price. Please contact the solution provider so that they can understand your need.

Atradius Collections logo

 

Competitive advantage

Atradius Collection Backup services,  leverage on the “A rating” of Atradius, the fact that we are specialized in debt recovery and that we operate globally with direct capability in 18 countries and indirectly through partners in more than 40 countries.

 

To find out more and to allow us to understand your need please send your data here for contact form to our Stand By partner who will call you back.

 

For more intormation go to: www.atradiuscollections.com