Financial Services.

Our Financial Services


Our Products

Greenstone is one of the leading global provider for Receivables Financing and Approved Payables Financing programmes through it’s banking business partners. Uniquely in the market, our platform is highly flexible and supports a wide range of products using the International Chamber of Commerce’s trade finance definitions.   

Structured Finance

Term used to describe a sector of finance that was created to help transfer risk using complex legal and corporate entities.

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Securitization

A structured finance process that distributes risk by aggregating debt instruments in a pool, then issues new securities backed by the pool.

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Merchant Banking

Long-term sources or funds are required to create production facilities through purchases of fixed assets such as plant, machinery, land, building, furniture, etc.

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Due Diligence Documentation

To deliver client satisfaction with creativity innovation, and sincerity, while acting in compliance with all laws and ethics.

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Trade Receivables Financing

SELLER-LED PROGRAMMES


Our Products

Greenstone is the leading global provider for Receivables Financing and Approved Payables Financing programmes. Uniquely in the market, our platform is highly flexible and supports a wide range of products using the International Chamber of Commerce’s trade finance definitions.

Trade Receivables Financing

SELLER-LED PROGRAMMES

TRADE RECEIVABLES SECURITISATION An efficient and low-cost way of financing a diversified trade receivables portfolio. Provides corporates with committed funding for up to 5 years.

RECEIVABLES FINANCE

Allows a corporate to sell invoices to their chosen funders who finance selected debtors from the seller’s portfolio ASSET-BASED LENDING (ABL) Loan finance based on a seller’s underlying pool of eligible receivables at a pre-agreed funding amount and advance rate Trade Receivables Securitisation Trade Receivables Securitisation is an efficient and competitive way of financing a diversified trade receivables portfolio. Securitisation programmes provide corporates with commitment and diversification of funding sources. The portfolio approach eliminates individual debtor approval and increases total funding.

HOW DOES IT WORK?

A securitisation programme is based on the sale of trade receivables to a Special Purpose Vehicle (SPV), which issues debt to funders. Funders finance the purchase of these receivables. Debt issued by the SPV is at an implied investment grade credit rating. This reduces funding costs compared to other types of financing available to the seller. The level of financing is based on portfolio performance as a whole, not on specific debtor names.

BENEFITS

  • Improved liquidity Access to trade receivables assets
  • Access to committed funding Portfolio diversification
  • Potential off-balance treatment Attractive risk-return profile

SUCCESS FACTORS

Trade Receivables Securitisations provide a number of benefits to a corporate. However, due diligence and a thorough understanding of portfolio characteristics are required early-on to ensure the optimal financial structure is realised.


Receivables Finance

Receivables Finance allows a corporate to reduce cash trapped in their accounts receivables balance, improve profitability and reduce leverage through the sale of part, or all, its receivables. The programme may achieve accounting deconsolidation of receivables, subject to review by the company’s auditors. A seller would communicate the outstanding balance of their receivables ledger to the funder/buyer, who finances a percentage or the full amount of receivables available by selecting invoices from specifically identified buyers

Receivables Finance

HOW DOES IT WORK?

Receivables finance programmes are based on the sale of some or all receivables to a funder or SPV, governed by the terms set in the Receivables Purchase Agreement (RPA). The amount of funding is based on an agreed advance rate, which is in turn based on the total balance of eligible receivables and debtors in the portfolio. The sale of receivables, and associated rights, can be structured with or without recourse to the company, and collections from underlying debtors can continue to be made either to the company’s accounts or directly to the vehicle or funder, depending on the agreed structure.

BENEFITS

  • Improve cash collection and reduce DSO
  • Access alternative source of funding
  • Improve liquidity position
  • Potential for reducing leverage/li>
  • Typically uncommitted
  • Not involved in cash collection

SUCCESS FACTORS

Trade Receivables Securitisations provide a number of benefits to a corporate. However, due diligence and a thorough understanding of portfolio characteristics are required early-on to ensure the optimal financial structure is realised.


Asset Based Lending

Asset-based loans (ABL) are a simple and efficient way of financing receivables. The simplicity of the structure drives short implementation and structuring timelines, that help companies quickly release incremental liquidity. The programme can be easily tailored and expanded to accommodate organic growth, and new jurisdictions or business lines, depending on the company requirements.

Receivables Finance

HOW DOES IT WORK?

Asset-based loan programmes are based on the financing of a pool of receivables; receivables being the asset base. The amount of funding is based on the total balance of eligible receivables and an agreed advance rate. These programmes are structured so the loan is backed and secured by the receivables. Greenstone’s platform automatically processes the portfolio on a daily basis, monitors portfolio performance and delivers regular transaction reports. Programmes can be tailored to meet client requirements, including the addition of sellers across multiple currencies and jurisdictions.

BENEFITS

  • Increase cash available
  • Access alternative source of funding
  • Short implementation and structuring timeline
  • Lower cost of funding
  • Higher amount of funding compared to traditional lending
  • Access to special situations

SUCCESS FACTORS

Prior to implementing the programme, it is important to ensure certain receivable and portfolio characteristics are met. This initial assessment ensures that the feasibility of the programme is ascertained early on to ensure successful implementation.


Approved Payables Financing

BUYER-LED PROGRAMMES

This solution allows corporates to extend funding to their suppliers through the discount of their own receivables. This may enable buyers to extend payment terms on their payables, unlocking working capital for redeployment into other corporate initiatives.

Payables Finance

HOW DOES IT WORK?

A payables finance structure establishes a tripartite arrangement between a corporate, supplier and funder. The funder will typically contract to purchase receivables generated by the supplier upon confirmation of the sale to the buyer. By keeping the relationship between supplier and funder independent and managed through the platform, any payable may be classified for accounting purposes as trade debt as opposed to an on-balance sheet finance obligation.

BENEFITS

  • Improve payment terms and increase DPO
  • Increase cash flow
  • Accelerate collection of receivables
  • Access to alternative competitive funding
  • Generate fees based on the discount
  • Finance irrevocable payment undertaking

Receivables Finance

HOW DOES IT WORK?

Asset-based loan programmes are based on the financing of a pool of receivables; receivables being the asset base. The amount of funding is based on the total balance of eligible receivables and an agreed advance rate. These programmes are structured so the loan is backed and secured by the receivables. Greenstone’s platform automatically processes the portfolio on a daily basis, monitors portfolio performance and delivers regular transaction reports. Programmes can be tailored to meet client requirements, including the addition of sellers across multiple currencies and jurisdictions.

BENEFITS

  • Increase cash available
  • Access alternative source of funding
  • Short implementation and structuring timeline
  • Lower cost of funding
  • Higher amount of funding compared to traditional lending
  • Access to special situations

SUCCESS FACTORS

Prior to implementing the programme, it is important to ensure certain receivable and portfolio characteristics are met. This initial assessment ensures that the feasibility of the programme is ascertained early on to ensure successful implementation.


Dynamic Discounting

Dynamic Discounting is a form of supply chain finance where suppliers sell their invoices at a discount to the buyer. Early payment discounts are dynamically-calculated based on the early payment and maturity date.

Payables Finance

HOW DOES IT WORK?

Dynamic Discounting allows the buyer to utilise their excess cash to make early payments to suppliers looking to sell their invoices before the invoice maturity date. The buyer can achieve accounting benefits, as the programme is purely commercial.

BENEFITS

  • Generate higher yields
  • Improve P&L
  • Strengthen relationship with suppliers
  • Accelerate collection of receivables
  • Improve liquidity and reduce DSO
  • Better relationship with buyer compared to a marketplace

SUCCESS FACTORS

Greenstone's multi-funder platform provides buyers with flexibility to use excess cash through their commercial trading cycles. It allows for a combination of funding sources by using dynamic discounting with other forms of supply chain finance without impacting their supply chain


Payment Extension

This structure is a form of supply chain finance commonly used as an alternative to traditional reverse factoring. Under this structure, the buyer is not required to renegotiate payment terms with their suppliers while still taking advantage of working capital improvements.

Payables Finance

HOW DOES IT WORK?

This structure allows buyers to take advantage of commercial early payment discounts offered by suppliers and leverage these to fund artificial payment extensions with selected funder(s). The structure can provide both P&L and working capital benefits. Accounting treatment needs to be analysed by the buyer's auditors.

BENEFITS

  • Improve payment terms and increase DPO
  • Increase available cash flow
  • Accelerate collection of receivables
  • Access to alternative competitive funding
  • Generate fees based on payment extension
  • Risk supported by the buyer

SUCCESS FACTORS

A thorough understanding of the buyer's business objectives is required prior to setup of the programme. The focus of this structure is to extend payment terms for the buyer, without impacting current commercial terms with the supplier.