Customer issuesReduction in Working Capital Requirements (WCR)
In recent years, reducing Working Capital Requirements (WCR) has become one of the major objectives of listed companies or companies that have been bought out through an LBO. There are three areas of work to reduce Working Capital Requirements: reduce inventories, reduce the deadlines agreed with customers or those agreed with suppliers. For listed companies, the benefit lies in improving the presentation of the balance sheet by removing the customer receivables from it and by therefore taking action on customer deadlines. For companies under an LBO, it is about retaining financing conditions while complying with the ratios and covenants set by the bankers. Again, in order to achieve this, removing the customer receivables from the balance sheet is an extremely effective technique. The ideal set-up is to combine off-balance sheet credit insurance and off-balance sheet factoring.
Globalia Conseil is a broker specialised in reducing Working Capital Requirements through off-balance sheet credit insurance and off-balance sheet factoring.
Insuring export turnover in a new geographical area
A company that sets off to conquer new markets, by creating a subsidiary or otherwise, in a new geographical area has every incentive to insure its turnover through an export credit insurance policy. Taking market shares is the company’s objective but preserving the company’s profit is that of the insurer.
Export credit insurance enables a company – regardless of its size – to be compensated in the event of non-payment by one of its customers. The intervention of credit insurers is not limited solely to the OECD zone. They also insure export invoices from customers outside the OECD zone.
Financing export turnover
International factoring enables a company to finance its Working Capital Requirements (WCR), by financing its export invoices. Financing export invoices responds to cash-flow needs. The intervention of factors is not limited solely to the OECD zone. They also finance export invoices for your customers outside the OECD zone.
Financing its turnover but continuing to manage the payment of customer invoices
Non-notified and/or outstanding balance factoring enables a company to obtain financing for its invoices while continuing to manage the payment of its customer invoices. If the company already has a credit insurance policy, the factoring company may be the delegatee of rights to compensation payments. Therefore, the insurer insures while you continue to manage your customers, and the factor finances up to the guarantee negotiated with the insurer.
You have a large number of customers and the average size of your invoices is not high: how do you manage?
SME credit insurance gives you access to financial information collected by the unique credit insurer networks. The credit insurers survey and constantly monitor approximately 70 million companies worldwide. Your customers are therefore analysed and assessed and you benefit from guaranteed amounts on each of them within the framework of your business relationship.
Contact us
Globalia Conseil
171 bis, avenue Charles de Gaulle
92200 Neuilly-sur-Seine – FRANCE
Cell : 33 (0)6 13 14 33 26 / 33 (0)6 63 28 77 60
Phone : 33 (0)9 83 87 33 27 / 33 (0)9 83 89 33 27
Email : contact@globaliaconseil.com
