Selling the Invoices
Companies that want to fund their short-term operations can submit their invoices to 0KM-f and sell them on its electronic market. Companies will show a sell price that may be matched by a buy price from investors, through a continuous auction mechanism.
If the deal is closed, the sellers/ companies will transfer to the buyers / investors, the invoices at the agreed price (a percentage of the invoice face value).
Companies will receive the agreed amount of money from the sale of the invoice. After the deal is closed, all the risks are borne by the buyers / investors (the purchase is with no-recourse clause).
Investors willing to buy invoices, will show a buy price during the auction. The agreed price will be transferred to the seller / company when the deal is closed.
After the Sale
The debtor /client is notified that the invoice has been sold to the buyer / investor. The details where to pay the invoice at the expiry are also provided.
The buyer / investor is exposed to the risk that the debtor / client does not pay the invoice at the expiry. 0KM-F offers tools to monitor the expiry schedule and the payment of the invoices.
At the expiry, the debtor / client pays the invoice as instructed after the sale of the invoice.
The buyer / investor will receive the full amount of the invoice. The difference between this amount and the paid price to the seller / company, is the return on the investment.