Assignment of Receivables provides customers with an opportunity
to pay equal and fixed periodic payments for services, software
licenses and/or hardware even though costs may be more heavily
weighted during the delivery and “go-live” period of the supply
contract.
Vendors also find this facility of particular interest as it
allows them to negotiate extended payment terms directly with
customers and still recognise revenue on day one. The receivables
stream is assigned by the vendor who confirm a net present
value, which enables an invoice for the agreed capital sum to be
raised.
A finance addendum comprising relevant terms and conditions
is simply added to the vendor’s standard supply agreement, which is
then executed in the normal way.
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