Market dynamics and rationale for account receivables finance

Account receivables finance, also known as factoring, is a type of financial arrangement in which a company sells its outstanding accounts receivable to a third-party finance company at a discount. This allows the company to receive immediate cash payment for its outstanding invoices, rather than having to wait for the customer to pay.


There are several reasons why a company might choose to use account receivables finance. One reason is to improve the company's cash flow. By selling its outstanding accounts receivable, the company is able to convert its future expected income into immediate cash, which it can then use to invest in new opportunities or cover its operating expenses.


Another reason is to reduce the risk of non-payment by customers. When a company sells its accounts receivable to a finance company, it transfers the risk of non-payment to the finance company. This means that the company is no longer exposed to the risk of customers failing to pay their invoices on time.


Overall, the market for account receivables finance is driven by the need for businesses to manage their cash flow and reduce the risks associated with outstanding invoices. By providing immediate cash payment for outstanding accounts receivable, finance companies help businesses to operate more efficiently and effectively.


Qube Account Receivables Finance Added Value

PRI® inside Platform

The fully automated solution for account receivables (or AR) financing by PRI® inside offers:


Set-up for daily settle-ment routine is defined on automated interface between client’s financial and operational systems and Qube’s PRI® inside. Interface will be implemented and supported by Qube Servicing.


After go-live Qube’s clients will have access to all daily settlement reports with automated instructions for payments if required, resulting in a very limited work-load for clients on an ongoing basis.


PRI® inside has been developed based on the in-depth experience with receivables finance with the objective to have a fully front-to-backend automated receivables finance platform based on historic and actual data which to provide full insight & transparency which will be evidenced by demo on request.

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