caprelease - "Every Sale is a Cash Sale"

The caprelease solution is aimed at medium to large companies that have a desire to utilise cash currently used to fund receivables in a more productive manner. It also aims to bring to the corporate and its customers a "Financial Discipline" in receivables management.

For a corporate client, the program significantly reduces the amount of working capital required to fund receivables.

Unlike other forms of cash acceleration, the caprelease program delivers 100% of the invoiced value which is paid to the corporate the next business day.

Using a unique trade credit insurance policy, the caprelease program eliminates bad debts. The program enables the receivables to remain off balance sheet.

The aim of the caprelease program is to enable the Corporate to operate its business with improved efficiency by employing the latest payment innovations and improved business practice.

For the corporate, the key features and drivers of the caprelease program include:

Key Features

• Under the International Financial Reporting Standards (A-IFRS), the receivables are able to remain "off" balance sheet under the caprelease program.
• Receipt of payment for 100% of receivables/invoiced sales on the next business day.
• Provides an effective credit risk management tool as there is no requirement for provision of a loss reserve or supplier recourse.
• Improves the company's financial ratios - no longer acting as banker to its customers.
• No bad debts - risk is 100% underwritten by credit insurance.
• Greater cash flow and lower working capital needs.
• Significant savings in the cost of receivables management and collections.
• Assists in standardizing trading terms.
• If listed, more favourable analyst reviews producing increased investor awareness.
• Detailed management reports.

Key Drivers

• Off balance sheet treatment for a corporate's receivables.
• Requirement for cash, particularly for corporate clients that may be capital constrained.
• Outsourcing of receivables management including monthly statement production, payments and collections
• A combination of some or all of the above drivers.

• Maintenance of existing or improved trading terms.
• Consolidated statement and electronic payment options.
• Standardisation of trading terms, while at the same time accommodating "standard" + "Extended Term" customers
• Access to optional online statement.

"The caprelease program is the 21st Century solution to getting paid the next business day."