东莞出口企业应收账款问题的探讨(开题报告+任务书+英文文献翻译) 第4页
to participate in an accounts receivable financing program with a particular purchaser. Sellers should be cognizant of the purchaser's source of funding, the stability and commitment of the funding source, as well as the track record and reputation of the purchasing entity.
Program complexity. Accounts receivable purchase programs may be difficult to understand and administer, particularly by provider organizations that are unfamiliar with the operation of such programs. Closing documents often are lengthy and complicated. Operational difficulties may arise with regard to the way in which breaches of representations and warranties concerning the collectibility of receivables are handled. For example, is notice of a breach of representation or warranty given to the provider organization, and if so, when and how is the provider organization required to respond? Must receivables that breach representations or warranties be repurchased, and if so, what is the procedure for doing so?
Further problems may arise from the way in which posting errors are handled, payments are processed upon collection, and funds are returned to the seller. Additional complexities may be created when the purchaser contracts with a third party to handle the servicing of the purchased receivables.
Another problem is the tendency of some purchasers to understate the complexity of their programs in their marketing efforts or to quote "best case" terms that are seldom, if ever, implemented. As a result, providers may come to the closing table with unrealistic expectations.
Such problems can be minimized if sellers understand fully all aspects of the program and develop strong communication links with purchasers prior to the commencement of the program. The seller's legal counsel should ensure that all closing opinions and www.751com.cn requirements are clear and fully understood by the seller. The seller's representative who negotiates the terms of the purchase should be familiar with all the terms of the contract. He or she also should continue to pursue alternative financing arrangements until the closing occurs on acceptable terms.
Communication links between the provider and the seller should exist both at the operational and at the managerial levels in order to assure that maximum operational efficiencies are obtained. Some purchasers offer hands-on training sessions so that the seller's operational staff can learn how to handle the complexities and nuances of their purchase programs. However, other purchasers rely on third parties to service the purchased receivables. Additional time and attention needs to be devoted to maintaining proper communication links between these purchasers and sellers.
Voluntary termination. Sellers may wish to terminate their participation in an accounts receivable purchase program for a variety of reasons. For example, a seller may no longer wish to sell accounts receivable because its financial condition has improved and, as a result other, more attractive financing has become available. Or, because of a change in top management, the seller may decide it no longer wants to pursue the sale of accounts receivable. Or, the seller may terminate because a particular sale and purchase program may not have functioned as anticipated.
However, several factors restrict the ability of sellers to terminate their participation in an accounts receivable purchase program. One of the most important is fundamental economics. A seller that is contemplating withdrawal from an accounts receivable purchase program needs to ensure that it will have sufficient funds to meet its working capital needs. These funds must come from a source other than accounts receivables because collections on receivables belong to the purchaser and collections from newly generated receivables will not be immediately forthcoming. Additional sources of working capital will have to be identified to cover current operating expenses.
A seller may have difficulty meeting the requirements for new financing to bridge this gap, however. In particular, if the new financing source requires a first lien on accounts receivable, the prior interest of the original purchaser must be released. In order for this to occur, the original purchaser must be repaid in full for all amounts that are due on previously purchased receivables, including those that must be repurchased by the seller because representations or warranties have been breached. The purchaser must retain its security interest in the receivables until payment is received in full because it typically has no other source from which to recoup the amounts it has paid out (including costs and expenses).
Communication links between the provider and the seller should exist both at the operational and at the managerial levels in order to assure that maximum operational efficiencies are obtained. Some purchasers offer hands-on training sessions so that the seller's operational staff can learn how to handle the complexities and nuances of their purchase programs. However, other purchasers rely on third parties to service the purchased receivables. Additional time and attention needs to be devoted to maintaining proper communication links between these purchasers and sellers.
Voluntary termination. Sellers may wish to terminate their participation in an accounts receivable purchase program for a variety of reasons. For example, a seller may no longer wish to sell accounts receivable because its financial condition has improved and, as a result other, more attractive financing has become available. Or, because of a change in top management, the seller may decide it no longer wants to pursue the sale of accounts receivable. Or, the seller may terminate because a particular sale and purchase program may not have functioned as anticipated.
However, several factors restrict the ability of sellers to terminate their participation in an accounts receivable purchase program. One of the most important is fundamental economics. A seller that is contemplating withdrawal from an accounts receivable purchase program needs to ensure that it will have sufficient funds to meet its working capital needs. These funds must come from a source other than accounts receivables because collections on receivables belong to the purchaser and collections from newly generated receivables will not be immediately forthcoming. Additional sources of working capital will have to be identified to cover current operating expenses.
A seller may have difficulty meeting the requirements for new financing to bridge this gap, however. In particular, if the new financing source requires a first lien on accounts receivable, the prior interest of the original purchaser must be released. In order for this to occur, the original purchaser must be repaid in full for all amounts that are due on previously purchased receivables, including those that must be repurchased by the seller because representations or warranties have been breached. The purchaser must retain its security interest in the receivables until payment is received in full because it typically has no other source from which to recoup the amounts it has paid out (including costs and expenses).
Another set of reasons that a purchaser may impose minimum program participation periods is related to fund management. Purchasers often have a defined pool of funds which they use to fund their purchases. Once the pool is fully committed, a seller's withdrawal can result in funds obtained by the purchaser going unused, which can be costly to the purchaser. Termination penalties are a typical way for purchasers to manage this risk.

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