By selling accounts receivable (accounts receivable and bills receivable) to BOT Lease, early conversion to cash is possible. With the WITHOUT-RECOURSE method, assets can be compressed and the balance sheet can be slimmed down simultaneously with execution.
Scheme
Main schemes handled
WITH-RECOURSE method
If it becomes impossible to collect receivables from the original debtor, the customer bears the obligation to repurchase the receivables from BOT Lease.
WITHOUT-RECOURSE method
BOT Lease bears the risk of receivables collection and the customer has no obligation to repurchase.
Benefits
1. Diversification of financing
By utilizing accounts receivable, diversification of financing is realized.
2. Cash flow improvement
Cash conversion before the collection due date of receivables improves the customer's cash flow.
3. Improvement of financial indicators (WITHOUT-RECOURSE method only)
In the case of the WITHOUT-RECOURSE method, off-balance sheet treatment of accounts receivable is possible as BOT Lease bears the collection risk.