UniCredit’s Sebastian Hölker discusses the possibility of a single buyer for entire receivables portfolios

FaSebastian Hölkerctoring receivables is highly advantageous for corporates – lowering DSO, raising asset quality and improving debt-equity ratios, in addition to
providing liquidity and risk management. Yet it is a technique that often causes firms difficulty, with no one buyer interested in purchasing an entire portfolio, writes Sebastian Hölker in AFP’s Global Treasury & Finance Insights newsletter.

The resultant need to re-package contracts for different counterparties has troubled companies for some time, but it need do so no longer. Banks have recognised this problem, and are working in partnership with factors and insurers to provide a single entity for buying receivables portfolios wholesale.

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