Trade receivables are a high credit quality asset class and an effective alternative to the traditional capital borrowing and other credit arrangements. It offers lesser funding cost and faster turnaround time.

Original equipment manufacturers, micro, small and medium enterprises (MSME), and corporates, need healthy working capital to address their growing business opportunities. According to a study, as the order book grows, nearly 40% businesses face cash flow, working capital and liquidity challenges.

Securitisation invoice discounting and invoice factoring are the different methods leveraged to provide credit using trade receivables. Securitisation banks/funding providers are increasingly showing interest in it, as trade receivables securitisation proves to be a relatively less risky asset class with a constant fee as income.

An overview

‘vTRACE’, a unique one-stop solution for banks that addresses all the needs of Trade Receivables Securitisation.

This tool can help banks perform due-diligence, process receivables and funding requests at a much faster pace. It also employs various credit risk management techniques to ensure that the right amount of funding is done with optimal exposure and concentration distribution among obligors.

In addition, the tool supports securitisation, invoice discounting and factoring services of trade receivables. The solution also caters to revolving credit, one time funding and single invoice funding. This can also be used in receivables exchange/market places as a decision supporting solution.

Key business features

  • Seamless processing of receivables
  • Configurable dynamic reserves setup
  • Process receivables for different configurable eligibility tests
  • Concentration distribution engine
  • Compliance engine to ensure facility terms monitoring
  • Risk management features to analyze the risk exposure and attribution
  • Dashboard driven solution accessible across various devices
  • Always ensures right amount of funding is done with right distribution

Download the vTRACE brochure to know more.