Certified Accounts Receivable

This service is used when a company's book debts need to be ascertained and reported on as they may be worth as much or even more than the stocks. The Bank's legal security over the accounts receivable may be a floating charge, an equitable mortgage where appropriate or other alternative means as devised. The degree of control of payments received by the company would be entirely at the Bank`s discretion.

A company's book debts may be worth as much or even more than the stocks so any monitoring ACE Global Depository provides would be enhanced by their inclusion. This can be done by employing many of the same techniques used in Certified Inventory Control. ACE Global Depository's survey for example, would include the handling of book debts as well as stocks. ACE Global Depository then examines the company's books, verifies the balance if necessary, prepares an ageing analysis and includes its findings on the first Certificate and all changes on the subsequent Certificates

The degree to which ACE Global Depository would control payments received by the company would be entirely at the bank`s discretion and the bank might change its instructions to ACE Global Depository at the point when the company`s financial condition changes.

The Bank's legal security over the accounts receivable may be a floating charge, an equitable mortgage where appropriate or other alternative means as devised.

  • ADVANTAGES TO THE BANK
  • These services keep the bank accurately informed on a periodic basis about the level of receivables so that the unsecured or the secured relationship can be reassessed as conditions change.
  • The banker has ACE Global Depository's certification that its reports are accurate.
  • This regular flow of current and accurate information enables a banker to grant the maximum facility to its client consistent with good banking practice. Thus, the bank's income quality is enhanced and the customer is assured of a continuing facility within agreed limits but one which can fluctuate with changing conditions and requirements.
  • The Credit facility can be systematically reduced or controlled by putting it on a fluctuating basis arrived at by crediting the facility. This results in a gradual increase in the borrower's equity in his stocks.
  • ADVANTAGES TO THE BORROWER:
  • The greatest advantage to a bank customer is a financing plan which the ACE Global Depository certification permits. In this way, the company spends a minimum amount of time worrying about finding new sources of short-term credit and maximum amount of time making a success of the business. To the extent that a company is able to rely on its relationship with the bank for its short term cash requirements its chances of success must be increased. The ACE Global Depository service enables the bank's customer to provide the necessary transparency in reporting, and enables them to have a firm financing plan or to obtain enhanced credit limits based on the engagement of an independent third party acting on behalf of the bank in respect of the company's receivables.
  • The ACE Global Depository service enable the bank's customer to provide the necessary transparency in reporting, and enables them to have a firm financing plan or to obtain enhanced credit limits based on the engagement of an independent third party acting on behalf of the bank in respect of the company's receivables.
  • In any loan application that is considered by the Bank, there are a number of pre-loan considerations which must be taken into account by the Bank prior to agreeing to grant a credit facility to its client. Know Your Client's Client (KYCC) due diligence has to be conducted and certain decisions have to be taken such as:
  • PRE-LOAN DECISIONS BY THE BANK:
  • The maximum amount of credit to be made available against ACE Global Depository's Collateral Receipts.
  • The percentage of the advance to be made against the value of the receivables. (ACE Global Depository's experience will be helpful here)
  • The pricing system ACE Global Depository is to use in valuing
  • The frequency with which ACE Global Depository is to submit its documents.
  • The percentage the Bank will lend against certified receivables.
  • The length of time a receivable may remain in the collateral base and any receivable which is not to be included in the base.

For further assistance, information and templates with regard to our Services, or if you wish to subscribe to our premium E Learning service for a full legal appraisal and regular updates on developments within the field in various jurisdictions worldwide, Please contact us at info@ace-group.net.