Receivable Financing is a means for clients

to accelerate cash flow by financing their

open invoices.

TURNING YOUR
RECEIVABLES INTO CASH

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INTRODUCTION
The biggest obstacle to business success is not
poor product development or lack of management
control. In simple terms, it is a shortage of cash
and the inability to maximize cash flow. Whether
it is due to rapid growth, seasonality or lack of
time to chase debtors or a long business cycle, the
end results are the same pressure, under
performance and the inability to grow.
The receivables financing platform, SCiCustomer
allows selling organizations to generate cash flow
through a centralized web-based platform, backed
by more than 45 leading financial institutions
generating unprecedented flexibility in terms of
jurisdictions, currencies, credit limits and
competitive pricing. This publication highlights the
benefits of receivable finance and the key
features of SCiCustomer.
PrimeRevenue, Inc. 2013

What is Receivables Finance?

It is common that sellers suffer from late payment from large corporates, meaning that a
significant part of their balance sheet is illiquid. Receivable finance unlocks the cash that is
owed to the seller by purchasing the invoice and providing cash in return. So technically it is
not lending or financing debt but an asset purchase. You are raising cash against your
debtors. A receivable financing solution, provides a true-sale of receivables with limited
recourse. It is an attractive alternative source of funding which optimizes the companys
balance sheet by converting receivables into cash.
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Turning your Receivables into Cash

GROWTH THROUGH
RECEIVABLE FINANCE
RECEIVABLE AND CREDIT

GROWTH

Receivables are often seen as a necessary byproduct of sales. The primary goal is to minimize
the days sales outstanding (DSO) and reduce the
amount of finance provided to customers. On the
other hand, providing finance can support higher
sales and deepen relationships with customers.

Receivable finance is one tool in the companys

cash management toolbox that can support
significant business growth and help achieve
business objectives by improving the cash
conversion cycle. The accelerating of the cash
conversion cycle can lead to significant improvement in returns on invested capital.

Selling organizations are not banks. So why are

they financing their customers? The answer lies
partly in history, where the business practice has
developed. Credit has been used as a strategic
tool, where giving more credit may generated more
sales or maintained a level of sales in the face of
new competition. However, there was a price for
that.

Converting receivables into cash by reducing the

day sales outstanding (DSO) means releasing
working capital trapped in trade receivables and
creating additional capacity within the business to
self-fund growth.

Turn Your Receivables into Cash with Accounts

CHANGING ENVIRONMENT
Receivable Finance
With globalization of trade, goods, information and
payments are moving faster through cross-border
supply chains involving more parties in more
jurisdictions than seen in the past. As companies
expand into new markets, the need to access
liquidity and optimizing working capital while
minimizing credit risks are becoming more and
more important.
By taking a more holistic approach toward
financing receivables, sellers not only achieve
these objectives but also gain control over their
cash flow for the growth of their business.

SUPPORTING

BUSINESS

Health of Financial Supply Chains

Is Critical for Every Corporate
There is a good reason for that, as
the consequences of failing to
support key trading partners can be
dire. The German manufacturer
Karmann was the main supplier of
convertible roofs for the Mini cars. In
2009, the insolvency case filed by the
company
jeopardized
BMWs
production line in the midst of a
worldwide financial crisis.

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