Sale of receivables
Mediation in the sale of accounts receivable on the secondary market
Many companies often have to sell their accounts receivable. This may be due to the need for cash and the inability to wait for customers to pay their bills, or the unwillingness to deal with the credit risk of customers. And endlessly remind or hire about overdue payments – in other words, the unwillingness to worry about collecting accounts receivable.
If a company does not want to deal with debt collection on its own or with the help of specialized companies, it can sell accounts receivable. This is a legal and convenient way to receive funds, in which you do not need to wait for the debtor to return the money. Selling accounts receivable is a common financial management practice in the modern business world.
Selling accounts receivable is a common financial management practice in today’s business world.
The procedure for selling accounts receivable usually consists of several stages.
1. Debt assessment
Obviously, before selling a debt portfolio, it is necessary to assess its value. To do this, receivables are analyzed, their liquidity and collectability are determined.
2. Buyer selection
The next step is to find a buyer. This step can be the most difficult if you do the search yourself.
3. Conclusion of the contract and transfer of debt
After selecting a buyer, it is necessary to check whether all the necessary documents are available and to conclude a contract for the sale and purchase of accounts receivable. The contract must specify all the terms of the transaction: the value of the debt, the payment procedure, etc. It is obligatory to inform the debtor about the sale of the debt.
Since business owners often have to find ways to deal with accounts receivable issues, many choose to use the services of intermediaries.
BENEDIXUS OÜ may act as an intermediary in the sale of accounts receivable on the secondary financial market, transferring the rights to claim cash or other assets to a third party.
Based on the Service Agreement and Power of Attorney, BENEDIXUS OÜ will sell the accounts receivable in your company in the interests of the customer of this service.
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We know our customer
In order to comply with applicable laws, we also need information from our customers for various purposes. To ensure the best customer experience, it is important that our customers’ data is always correct and up-to-date. In addition, like banks and financial institutions, we must follow the “Know Your Customer” principle.
The requirements presented to us arise from legal norms:
If necessary, we also request additional information about a specific transaction (including the origin of funds, sources of income, content of the transaction, etc.). These documents must be in an understandable language. If necessary, we have the right to ask the client to order an official translation of the documents.
Benedixus OÜ
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