West Asset Management Commercial Receivables Collections
West Asset Management commercial receivables collections provide a complete package of assistance to businesses, whatever their size. Accounts Receivables
Accounts receivables is the term used to describe unpaid customer bills and invoices plus all other money owed to a business by debtors. Accounts receivables is effectively the total sum of money owed to a business by all its customers. When a business provides a customer with goods, services or even money in the form of a loan, a contract is said to exist between the parties. In return for those goods, services or money the customer agrees to make payments. This may be a one off payment to be made at the end of an agreed credit period - usually 30, 60 or 90 days - or it may be a series of payments to be made over a period of time.The total sum of accounts receivable are shown on the balance sheet of a business as a current asset - an asset that can be used to provide immediate cashflow.This is where West Asset Management and their commercial receivables collections services come in to play. Financing Receivables Financing receivables is a solution to cashflow problems that can be arranged through West Asset Management. Both aged and new invoices can be purchased, at a discount, by West Asset Management providing the client company with immediate cash to meet its trading obligations. In some states it is a legal requirement for debtors to be notified when accounts receivables financing is being arranged as the terms of the original contract are effectively being varied. The debt is no longer owed to the original company but to West Asset Management. Some businesses are reluctant to consider financing receivables in case it causes their own customers to lose confidence in their stability as a supplier. It is certainly a step that needs careful thought and management before being initiated.In some market sectors financing receivables, or factoring as it is sometimes known, is nothing unusual but it is likely to cause consternation in others - particularly healthcare.There is no doubt that financing receivables is a quick method of solving urgent cashflow problems. However, it is essential that any business considering receivables financing, as an option to solve their cashflow problems, take proper independent legal and financial advice before entering into any agreements - even with a company as reputable as West Asset Management. Receivables Securitization For thoSecuritisationwant to consider receivables financing, receivables securitization is anothersecuritisation receivables securitization the current securitisationnts receivable shown on the balance sheet is used as collateral or security for a loan which provides immediate money to meet the cashflow needs of the company.Receivables securitization is a very recosecuritisationablished form of what is effectively borrowing from financial institutions such as West Asset Management. There is usually a calculation or formula applied that limits the amount the company can borrow against its accounts receivable which will be based on the quality of those accounts. If the company has a credit approval process in place whereby credit checks are run before credit is extended to customers it is more likely to find it possible to borrow against the accounts receivable shown on the balance sheet - the debts outstanding will be of a better quality.Because borrowing in this manner is effectively secured, the interest rates applied are considerably lower and less of a burden to the company concerned.For companies who need help improving their cashflow situation West Asset Management commercial receivables collections provide a number of possible solutions that are well worth exploring. |