INTERNATIONAL RECEIVABLES SECURED FUNDING PROGRAM

Limit your company’s foreign-risk exposure while maximizing the use of its capital. Wachovia’s International Receivables Secured Funding Program provides exporters who have a larger portfolio of foreign accounts receivables with the ability to expand their borrowing potential while mitigating the risk of a catastrophic trade credit loss.

Challenges

Traditional asset-securitization programs and secured-credit facilities normally exclude foreign accounts receivable from the pool of eligible assets. For exporters with larger pools of foreign accounts or notes receivable, Wachovia’s Secured Funding Program may be the solution.

Benefits

Increased Liquidity

The Secured Funding Program offers the same liquidity benefit as an asset-securitization program, by converting a significant portion of your foreign accounts receivable into cash.

Risk Mitigation

An insurance policy provided by a private insurance company and crafted for this program also helps to reduce your company’s exposure to catastrophic losses from trade credit defaults.

Continued Customer Contact

Under the Secured Funding Program, your company continues to service its client accounts. Your export customers are normally unaware that their account has been insured or that the asset has been pledged to a lender.

Reduced Borrowing Cost

Larger pools of insured accounts receivable will often realize an interest rate reduction. The Secured Funding Program may also reduce the reliance on other bank credit lines.

Features

• A Special Purpose Entity (SPE) is formed with a capital contribution closely aligned with the deductible requirements of the insurance policy. Your capital contribution and any temporary excess funds are available for overnight investment.
• Accounts receivable collections are directed to a Wachovia lockbox. All information accompanying the payment is forwarded to your company.
• Settlement of funds is made either weekly or monthly, depending on volume and your company’s needs.
• The insurance policy is managed by your company or by an assigned broker. Wachovia is named Loss Payee under the policy.

Email This Page     Printer Friendly Version