Your reliable Business Process Outsourcing partner in financing and accounting
Increasing cost pressure, rising administrative and personnel costs as well as ongoing legal changes mean that companies are constantly faced with the challenge of developing its accounting system and looking for innovative accounting solutions.
Particularly in accounts receivable and creditor management transaction processes many companies use a competent partner to deal with the increased know-how and profitability requirements.
Thanks to our many years’ experience as a financial services provider we have specialized in the complete takeover of finance processes, known as Business Process Outsourcing (BPO).We offer integrated BPO services as part of Finance & Accounting and HR services, which can also be combined in a modular way with our service components of financing, protection against bad debt loss and debt collection.
Financial Auditing: Scalable Expertise
In an audit, processes are analyzed with respect to requirements and guidelines. Specially trained auditors assess the extent to which these requirements are fulfilled during the course of the audit and afterwards. Audits should be conducted more than once so that the correctness of the processes can be ensured even in the long term.
In the financial auditing segment, audits generally focus on receivables financing and the processes of the seller of the receivable. In general, receivables-based financing is possible only when based on a true service, rendered in full and accepted. In an audit, compliance with the agreed contractual framework and the accounting processes for financing within a business relationship are ascertained.
Back-up Servicing reduces risks
Safeguarding the securitization of receivables
Leading rating agencies such as Moody’s and Standard & Poor’s confirm that back-up servicing is a fundamental part of assessing the risk quality of asset-backed securities portfolios.Securitized receivables portfolios are extremely complex in structure owing to the numerous elements. Occasionally back-upservicers are not used with the aim of saving costs; however, this may be an expensive disadvantage for all concerned.
In receivables sales, reduction of operating risk has a positive impact on your rating as th epotential originator or investor, and thus enhances the attractiveness of the ABS portfolio. As an originator, your aim in selling your receivables is to convert balance-sheet assets into liquidity while reducing risks andcosts by means of recognized sale of assets.
As an investor, by selling ABS papers you can open up new asset classes and make opportune investments in line with your preferred risk and yield targets.
Association-free central regulation
With association-free central regulation Arvato Financial Solutions also offers
components of the central regulation service to companies that are not members of an association group. The companies retain their customary billing flexibility and their free choice of supplier as well as independent condition negotiations remain intact.
Through the web-based online portal of Arvato Financial Solutions the
companies can access a state-of-the-art billing system that simplifies existing processes such as individual invoice checking and on-time payment and at the same time offers the supplier comprehensive protection against bad debt loss (100% del credere).
Central regulation for purchasing associations
Based on the central regulation agreement Arvato Financial Solutions takes over a wide range of tasks in respect of the connected suppliers and members which comprise the service, billing and del credere functions. For example, the receivables of the connected suppliers in respect of the Arvato Financial Solutions member are processed and are paid to the respective supplier at the processing deadline in the first condition (using prompt payment discount). At the same time the member is paid the invoice for the connected supplier as a single total and from a single source.
Arvato Financial Solutions assumes the 100%ige del credere risk in respect of the suppliers for the receivables in respect of the members that are covered under the central regulation agreement.
Secure central regulation for the beverages sector
As manufacturing costs rise, many campaigns that are being run in retail spaces with resulting lower incomes, the competition is constantly increasing. At the same time, it is the stagnating revenue figures and the price pressure from the LEHs which is increasing the pressure on manufacturers and the trade to cut costs. As the margin calculations become tighter, the market players are demanding absolute payment security and the avoidance of duplicate payment risks.
Payment guarantee and 100% protection against bad debt loss
As a partner with a strong credit rating which is independent of LEH and banks, Arvato Financial Solutions offers the affiliated members and suppliers a secure and transparent central processing with 100% del credere cover. For this purpose, Arvato Financial Solutions uses separate trust accounts so that the members can pay into the accounts in a way that discharges their debts in respect of their suppliers. This gives all participants optimum security without any duplicate payment and bad debt loss risks. The weekly processing of the outgoing and incoming payments is carried out daily via a trust account. Service and security are a priority for us at Arvato Financial Solutions - but not the access to the payment streams.
Transparency in settlement and bonus distribution
With a web-based online portal, Arvato Financial Solutions provides a state-of-the-art central processing and billing system to ensure comprehensive liquidity controlling. Participants can access this 24 hrs a day to view their accounts and to process the confirmation lists. The due dates in the system are agreed in consultation with our partners. The invoices are posted on the respective due dates via the trust account. The bonuses can also be viewed and are distributed immediately with the weekly payment processing.
With our solution we focus on providing a service. At Arvato Financial Solutions there are no member contributions or participation conditions, thus excluding any joint and several liability.