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Increased Liquidity:
Benefit from the same level of liquidity as from an asset-securitization program by converting a significant portion of your foreign accounts receivable into cash.
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Risk Mitigation:
Reduce your company’s exposure to catastrophic losses from trade credit defaults with a carefully crafted insurance policy provided by a private insurance company. |
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Customer Contact:
Your export customers are normally unaware that their account has been insured or that the asset has been pledged
to a lender because your company continues to service its client accounts directly. |
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Reduced Borrowing Cost:
Larger pools of insured accounts receivable will often realize an interest rate reduction. The Receivables Funding Program may also reduce the reliance on other bank credit lines.
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Benefits of FGI’s International Receivable Secured Funding Program:
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A Special Purpose Entity (SPE) is formed with a capital contribution aligned with the deductible requirements of the insurance policy. Your capital contribution and any temporary excess funds are available for overnight investment. |
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Accounts receivable collections are directed to a FGI lockbox. All information accompanying the payment is
forwarded to your company. |
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Settlement of funds are made either weekly or monthly, depending on volume and your company’s needs. |
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The insurance policy is managed by your company or by an assigned broker. FGI is named Loss Payee. |
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