Factoring(Accounts Receivable and Promissory Note Credit Purchases)

Features

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.

Scheme Diagram

Factoring(Accounts Receivable and Promissory Note Credit Purchases)

Transfer Method for Accounts Receivable

Transfer Method When it is not possible to recover debt from the debtor Main use purposes
With Recourse Customer has the duty to repurchase accounts receivable from BOT Lease Conversion of accounts receivable into cash at an earlier date
Without Recourse 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.

Benefits

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.

Contact Information

Corporate Business Strategies Division
TEL 03-3270-5275
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