Accounts Receivables (A/R) Purchase programme as a
Working Capital / Supply Chain Solution

The A/R Programme

Due to an increasing demand for longer terms of payment among major customers AL Finans have established an A/R purchase programme
In this programme AL Finans purchases receivables from larger companies as soon as delivery of goods/services has taken place
The advantages of this programme include less expensive financing, favorable off-balance sheet treatment of receivables, assets and reduced credit risk
By selling their accounts receivable to AL Finans companies eliminate the asset from their balance sheet. This increases operating cash flow on their cash flow statement in the period of the sale. Furthermore it reduces their days of sales outstanding (DSO).

AL Finans purchases receivables from approved buyers, domestic as well as abroad
The receivables are purchased with 100 % - reduction of financing costs
The solution is an Off-balance solution according to IAS* §39

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