Factoring（Accounts Receivable and Promissory Note Credit Purchases）
By transferring (selling) your company’s accounts receivable (accounts receivable and promissory notes receivable) to BOT Lease, factoring allows for these to be converted to cash before settlement dates. In addition, it is possible to take such accounts receivable off your balance sheet depending on transfer method.
Transfer Method for Accounts Receivable
||When it is not possible to recover debt from the debtor
||Main use purposes
||Customer has the duty to repurchase accounts receivable from BOT Lease
||Conversion of accounts receivable into cash at an earlier date
||Customer does not have the duty to repurchase accounts receivable from BOT Lease
||- Cut debt-collection risk
- Removal of accounts receivable from the balance sheet
When the purpose for factoring is to remove accounts receivable from the customer’s balance sheet, it is necessary to fulfill the necessary requirement to duly assert against a third party and requirement to duly assert against the debtor after notifying the debtor and receiving their consent.
1. Recovery of funds before settlement date
Improves customer cash flow by collecting accounts receivable at an earlier date.
2. Support for Hedging against collection risk
The Without Recourse method allows the customer to avoid accounts receivable collection risk due to debtor bankruptcy or other circumstances.
3. Support for removing assets from the balance sheet
The Without Recourse method removes assets from the balance sheet using certain procedures which can improve the customer’s financial indicators.
- Corporate Business Strategies Division
- TEL 03-3270-5275