Financial services – stable cash flow regardless of when payment occurs
With our service that has been developed for e-commerce companies, our clients are paid immediately, while consumers receive invoices or the opportunity to make installment payments. We can also buy companies’ overdue receivables for a portion of the value and pursue collection activities ourselves.
Companies may benefit differently from using our finance services. Some companies want to have a stable cash flow, others to temporarily increase their liquidity to make investments, for example. Or they want to minimize their financial risk. Perhaps the most well-known financing service is factoring, whereby companies sell their invoices to us and are paid directly. Another is our service for e-commerce companies with large amounts of credits continuously being provided to consumers, giving rise to major financial risks. Here, risk is minimized since we offer a service whereby our clients are paid immediately on completion of the purchase, while the consumer is offered monthly invoicing or installment payments. The e-commerce company itself is the sender of all communications with consumers, although we take care of all the work.
For those companies, who seek to sell without risk and who do not want to devote resources to payment reminders and collection services, we offer payment guarantees after having first performed a credit assessment. We treat any unpaid invoices as collection cases.
Many companies suffer from late payments or because they are not paid at all. On the whole, large amounts of lost income are involved that could instead be used for investment in the companies’ development and to provide opportunities for more Europeans to gain employment. For a bank or a company, it may be considered feasible to sell its unpaid receivables, fully or in part. The burden is taken off the balance sheet, and the payment received can instead be used to invest and further develop the company.
We determine the purchase consideration for portfolios of overdue receivables by forecasting how much of the debt will be repaid and when it is expected to be paid. Following its purchase of the defaulted receivables, Intrum’s long-term debt collection measures commence, aimed at helping consumers become debt-free, since we can help them reduce their debt in a respectful manner, for example through installment plans that take account of each individual’s payment capacity.