The Law of Corporate Finance: General Principles and EU Law: Volume III: Funding, Exit, Takeovers

52 3 Reduction of External Funding Needs Factoring and invoice discounting are devices of particular value to small, fast- growi ...

3.4 Management of Working Capital 53 Factoring and block discounting of receivables. Block discounting is basically a form of fa ...

54 3 Reduction of External Funding Needs the receivables are assigned to the factor, the factor has the right to proceed di- rec ...

3.4 Management of Working Capital 55 As regards transaction finality, one of the most important questions for the fac- tor is wh ...

56 3 Reduction of External Funding Needs factor is governed, in the absence of choice, by the law of the country where the expor ...

3.4 Management of Working Capital 57 Approximation of laws. The legal aspects of forfaiting depend on the regulation of bills of ...

58 3 Reduction of External Funding Needs assigned as security, sold to individual financiers, or held by the firm to generate a ...

3.4 Management of Working Capital 59 the risks in the original assets are removed from the originator; if the assets are bank l ...

60 3 Reduction of External Funding Needs securities and sell them on rather than hold loans on their books. Exposures related to ...

3.4 Management of Working Capital 61 Information about the underlying assets. Layers of securitisation tend to separate the orig ...

62 3 Reduction of External Funding Needs Security arrangements generally. Security arrangements are, to a large extent, governed ...

3.4 Management of Working Capital 63 transaction can be interpreted in an adverse way. This recharacterisation can lead to a mat ...

64 3 Reduction of External Funding Needs In the light of continental European laws, the question would again be whether the requ ...

3.4 Management of Working Capital 65 principles take a stricter view on derecognition (see section 3.3.2) and consolidation comp ...

66 3 Reduction of External Funding Needs the cash expected from the revenue-generating assets, there should be surplus funds ava ...

3.4 Management of Working Capital 67 the standard securitisation structure, the latter require permanent managerial involvement ...

68 3 Reduction of External Funding Needs technique uses a variant of the concept of a secured loan rather than a true sale struc ...

3.4 Management of Working Capital 69 Both securitisation structures will require covenants to be undertaken by the parent compan ...

70 3 Reduction of External Funding Needs A synthetic securitisation structure is funded, if the payment obligation of the risk t ...

3.4 Management of Working Capital 71 be either an actual bank account or a fictive account. Sub-accounts are used for normal cas ...