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Receivables Securitization

At long last, you can achieve the cost savings of issuing asset-backed commercial paper secured by your accounts receivable.

Receivables Securitization

Conventional commercial paper limits your total borrowings to a formula based on receivables eligible under rating agency guidelines. By itself, commercial paper leaves a substantial funding gap.

We close the commercial paper funding gap with First Capital's CP Companion Loan. You get full borrowing availability plus a better blended rate than offered by all other alternatives.

Transaction size: $25 million to $1 billion


The Whole A/R Securitization Package
We put together for you all the elements required to access the commercial paper market:
  • Issuance handled by a top-tier CP desk
  • Our CP Companion Loan to close the CP funding gap.
  • A/R serviced by First Capital

As a result, your all-in financing costs are substantially lower than costs in the syndicated loan market.

CP Companion Loan

Our recourse, secured loan facility compliments your receivables-based securitization. Our CP Companion Loans are secured by:
  • Good receivables that are ineligible under rating agency guidelines
  • Over-concentrated credits
  • Inventory

Cost-Effective A/R Servicing

It is burdensome and costly to comply with the CP market's receivables processing and reporting requirements. When we service your receivables, you don't have to build in-house infrastructure to meet the strict requirements of the CP market.

What's more, our strong reputation in A/R servicing gives comfort to the CP markets, generating favorable terms for your transaction. Key A/R services include:

  • Anti-fraud emphasis
  • Hands-on receivables management, including independent field examiners
  • Improved transparency and reporting
  • Active securitization compliance monitoring

First Loss Security Purchase

At First Capital, we "put our money where our mouth is." We are so confident in the integrity of our processes that we will purchase a first loss interest in securitizations where we provide the receivables securitization services.

By participating at a meaningful level, which is negotiated for each transaction, we enhance the overall credit profile of the transaction and allow you to attract more favorable terms from the capital markets.

Is Receivables Securitization right for your growing business?

Call us about Receivable Securitization:
1-800-619-0804

Corporate Office:
West Palm Beach, FL

Office Locations:
California
Florida
Georgia
Hong Kong
Oklahoma
New York
Texas

 

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