The financial tool of securitisation is indeed a most useful one. It may provide convenient and inexpensive borrowings and often utilises assets that some senior executives may overlook as immediately utilizable.
Future revenue streams and investment coupons due payable in future months and years may be valuable cash needed today. For companies that provide their services through contracts with its customer base (eg. Mobile phones, Service Contracts, Supply Contracts) or own licenses, rights or royalties, it may be very possible to tap into that contractual income, discounted throughout the life of the contract.
Investment income may also be securitised. For investments carrying a fixed annual coupon or annuity of a suitable investment grade, the possibility of utilising this revenue stream is indeed very real.
Securitisation does not affect the company balance sheet as these transactions are ‘off-balance sheet’ allowing the management to operate without affecting the key financials of the company.
To see how securitisation may help your business, please contact us where our experienced partners will be able to answer your questions and advise you in detail. We look forward to meeting with all our potential clients and to discussing matters in strictest confidence here in Switzerland through our personal invitation.