Skip to main content
TD Securities
 
 
 
 

Receivables Monetization

Oil rig

Receivables Monetization is the purchase of open account receivables by TD Global Trade Finance that provides cash flow support to clients selling on open account terms.

 

This is a cost-effective solution for companies seeking: true sale treatment of receivables under GAAP (Canadian or U.S.), to manage daily sales outstanding, and to expedite cash flow.

 

Features

  • Receivables may be purchased on a periodic basis agreed to by the bank.
  • Seller may act as TD’s collection agent, thus sale is undisclosed to the Seller’s Counterparty/Obligor(s).
  • Balance sheet management & mitigation of credit exposure concentration.
  • Counterparty/Obligor may pay Seller (‘agent’) or pay TD direct if the program is fully disclosed.
  • Receivables term flexibility dependent on deal specifics.

Benefits

  • Reduced credit exposure/concentrations to certain Counterparties/Obligors to enable additional business flows.
  • Generate liquidity/improve cash flow by reducing ‘receivables cycle’.
  • Balance sheet reflective of true sale.
  • Potentially lower borrowing costs.

Requirements

  • Clients must have a good credit standing & have a relationship with TD.
  • A ‘Receivables Purchase Agreement’ must be signed and acceptable to both parties.
    December 15, 2017
    Login to

    Key Contacts

    Stephen Barr
    Head of Origination, Trade Finance
    416 308 9434Click to mail
    Email us
    Click to mail
    British Columbia
    604 654 3358
    Alberta, Saskatchewan and Manitoba
    604 654 3604
    Ontario
    416 983 6601
    Quebec and the Atlantic Provinces
    416 944 5794
    One of the World's 50 Safest Banks (Global Finance, 2009-2017)