Receivables are an asset, just like any other product. You can sell them and quickly raise the funds for your company.
The transaction is easy and boils down to three steps. We will assist you throughout the entire process.
Step 1: assessment of the receivables
We begin with reviewing the documentation regarding the receivables which you are planning to sell. You will receive a Power of Attorney from us with which you will grant our legal counsel access to the details of the case.
We view your receivables, e.g. in the form of an unpaid invoice issued for one of your clients, as an asset to be bought and sold, just like any other product put up for sale. Before we buy it, we want to give it a good look and assess its quality. In order to offer you a specific quotation we will have to see the case records of the insolvency proceedings. Only a party to the proceedings has got access to these documents – the creditors, the debtor, and the court. As a creditor you can authorise our legal counsel to review the court documentation.
Reviewing the documents, we will check for example:
- at which stage are the insolvency proceedings of the given debtor,
- whether your invoice is on the list of debts made by the trustee in bankruptcy and approved by the court,
- whether the list of debts is legally valid.
We will also look into the reports of the trustee in bankruptcy and we will try to estimate how much longer the entire process is going to take.
Step 2: quotation
After getting to know the details of the case and reviewing its documentation, we will make you an offer with a sales quotation. After accepting it you will receive a draft of the assignment agreement on the basis of which the transaction will be conducted.
Step 3: signing the agreement
When you accept the offered price, all there is left to do is finalising the transaction by printing out three identical copies of the agreement and signing it in accordance with your company’s principles of representation. After sending us the agreement in the way indicated by us, you will receive the agreed price by transfer to the bank account indicated by you.
After this transaction, your accountant will finally be able to write the debt off as an expense.
Pursuant to the regulations regarding trading receivables of a bankrupted entity, we will sign the agreement in the presence of a notary public. First copy will be sent to your company. Second one will be sent to the trustee in bankruptcy, so that they can reassign the receivables on the list of debts onto the new creditor. The third copy will be handed over to our accounting.
And that is all.
That way you can obtain funds much quicker than by waiting in line for repayments made in accordance with the list of creditors prepared by the trustee in bankruptcy.
On each step along the way you will have our full support. We will answer all questions asked by you, your partners, or your accountant.
If it ever happens that another of your contractors files for bankruptcy (which we would never wish on you, of course), give us a call. We can make another transaction. After all, we will be familiar with the procedure.