FINANCING FOR SME COMPANIES

Transcription

1 FINANCING FOR SME COMPANIES

2 TABLE OF CONTENTS I. What is Factoring II. III. Who is KMU Factoring AG Contact 2

3 WHAT IS FACTORING?

4 HOW DOES IT WORK AND WHAT ARE THE ADVANTAGES? The entrepreneur ( Client ) delivers a service or supplies a product and receives 90% of the gross invoice amount from KMU Factoring AG as soon as the service or product is delivered; the remaining 10% will be transferred upon reception of the payment for the invoice As a result, we finance good receivables for completed service or delivered goods to solid customers ( Customers ) KMU Factoring AG suffers credit losses of approx. CHF per year on a total volume of CHF 300 million, i.e., less than 0.05% (which is covered by the credit insurance company) -> solid customers The credit notes (incl. year-end bonus, discounts, deductions etc.) amount to approx. 3% -> good products and services 4

5 HOW DOES FACTORING WORK? (1) Delivery with a maximum of 90 days payment term (2) Delivery of invoice data in excel and invoice copies in pdf to KMU Factoring AG (3) Financing of 90% of the gross invoice amount (paid next day) (4) Receivables management in co-operation with client (5) Payment of invoice by your customer to KMU Factoring AG (6) Transfer remaining 10% by KMU Factoring AG (next day) 5

6 WHO IS KMU FACTORING AG?

7 WHO IS KMU FACTORING AG? Thorsten Klindworth Markus Hankammer A.B.S. Global Factoring AG Wiesbaden, Germany 100% 100% Founded 1996 Largest independent factoring company in Germany Profitable every year since the foundation Financed turnover in 2016: CHF 1.5 Mia. 40 employees Around 160 clients KMU Factoring AG Pfäffikon SZ, Switzerland Founded 2003 Largest independent factoring company in Switzerland 15 employees Around 100 clients 7

8 GROUP COMPANIES IN SCANDINAVIA, AUSTRIA AND SLOVENIA A.B.S. Factoring AB (Sweden) Established in 2013 in Stockholm CEO and management own 40%; remaining 60% owned by A.B.S. Global Factoring AG Offers full service factoring in Scandinavia CHF 50 million financed turnover; 4 employees A.B.S. Factoring AG (Austria) A.B.S. Factoring AG is the largest privately-owned and provider of quality full-service factoring in Austria (with full bank licence) CHF 600 million financed turnover; 30 employees and 160 clients A.B.S. Factoring d.o.o. (Slovenia) Important bank independent Factor in Slovenia 6 employees Our group offers full service factoring in Germany, Austria, Switzerland, Slovenia and Scandinavia with a financed turnover of close to EUR 2.5 billion 8

9 WHAT DO WE OFFER? Receivables financing In CHF, EUR, USD, GBP, CAD For domestic as well as international receivables (mainly OECD-countries, other countries on request) Protection against customers losses (insolvency and payment delay) In cooperation with Euler Hermes; other insurers on request Receivables management Standard reminding process, 10 days, 20 days and 30 days Receivables management as a service to our client our client can influence our reminding process (e.g., suspension of reminders in justified cases) Collection after receiving the approval from our client will be carried out by a third-party contractor 9

10 WHAT ARE THE ADVANTAGES? Immediate liquidity Taking advantage of growth opportunities Congruent financing of turnover Taking advantage of discounts for early payment to suppliers Providing customers with appropriate payment terms (e.g., seasonal) Reduction of liabilities against suppliers or banks, to improve financial ratios Protection against defaults Better protection against customers defaults Service Optimization of resources Professional receivable management, freeing up internal resources Effective receivables management, leading to shorter payment behavior Concentration on core activity No complex interfaces 10

11 HOW MUCH DOES IT COST? The costs depend on various factors, including: Customers and receivables structure (concentration, geography) Payment behavior Type of product / service (risk of complaints, warrantees, etc.) Credit standing of Client Turnover 11

12 WHO ARE OUR CLIENTS? Swiss or European companies with a need for liquidity. This need for liquidity can have various reasons: Growth Longer payment terms for customers Discounts on suppliers Reduction of liabilities against suppliers or banks, to improve financial ratios M&A Turnover from CHF to approx. CHF 100 million Main business with corporate customers or public entities (B2B) (we do not finance receivables against private consumers) Diversified customer base Largest part of customers in OECD-countries 12

13 WHERE ARE OUR CLIENTS? 13

14 CLIENT REQUIREMENTS Clear and reliable business processes and sustainable business model Good products or services, with little quality risk But: No Covenants No financial ratios (e.g., cash flow multiple, equity ratio, etc.) KMU Factoring AG finances based on the quality of the services or products and the quality of your customers! 14

15 DOCUMENTS REQUIRED TO PROCEED To make a concrete, non-binding offer, we need the following information: Total turnover Turnover by customer Latest financial statements List of open receivables (most recent) If you accept the offer (non-binding), then we need the following additional information to prepare our internal documentation for approval by our Credit Committee: Financial statements of most recent 2 fiscal years Intermediate accounts / business plan for 2017 List of open receivables (most recent), preferred in Excel List of open payables (most recent), preferred in Excel List of bank relationships List of shareholders / beneficial owners Sample contract and process overview (purchase order, confirmation, delivery documents, invoice, etc.) 15

16 CONTACT

17 YOUR CONTACT KMU FACTORING AG Huobstrasse 3 CH Pfäffikon SZ MARC MEIER Executive Board Tel: Fax: Mobile: STEPHANIE HONEGGER Executive Board Tel: Fax: Mobile: meier@kmufactoring.ch honegger@kmufactoring.ch 17