2
Two countries: Germany and Italy
3
Financing products
10
Days to financing
“Invoice Trading” consists of selling trade receivables to institutional investors
Modern Capital purchases trade receivables from SMEs via a dedicated company financed by institutional investors. SMEs benefit from significant investment power, while investors gain easy access to a highly attractive, uncorrelated asset class.
Key benefits for SMEs
1.
Financing is also available to weaker companies
We can also serve smaller and weaker companies as we use advanced IT systems and we mainly focus on debtors’ creditworthiness, not that of the sellers.
Banks, instead, use legacy IT systems and, due to their regulations, must reserve capital based on sellers’ creditworthiness, not that of the debtors. For these reasons, banks often avoid serving smaller SMEs.
2.
Diversification of funding sources, away from banks
Our investors are long-term investors that seek non-correlated, stable returns, generated by a portfolio of good quality debtors. Therefore, such funding will remain in place also if the sellers were to experience troubles.
Banks, instead, focus on providing funding via debt and factoring to good and large sellers. This means that if an SME were to run into trouble, it would not get any funding from banks, neither via loans nor via factoring.
3.
Silent purchases of trade receivables are possible
We can purchase trade receivables without informing your customers.
This is a topic that causes a lot of concerns for SMEs, and that’s why we are happy to be able to provide an effective solution. Invoice verification methods will be agreed jointly with the seller.
product 2
“Reverse Invoice Trading” for companies with good financials
Companies with attractive financials can, in addition to “Invoice Trading”, also implement a “Reverse Invoice Trading” program, which enable their suppliers to easily sell their trade recevables. Benefits for debtors are numerous: reduced suppliers’ funding risk, improved image and reduced bank debt if longer payment terms were agreed.
Product 3
“Inventory-backed Invoice Trading” (a.k.a. “Trade Finance”) to finance purchases
We finance traders that face a cash shortfall since they have immediate outflows for the purchase of goods while their inflows occur after months.
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Contact us to find out more about our funding solutions.