The purpose to this Offering is to provide Shareholders with exposure to a pool of commercial accounts receivables from a diverse group of Debtors. The receivables pool is made up of verified trade receivables less than 90 days owed from credit worthy businesses; many of whom are large multinationals. The pool is widely spread across thousands of debtors with no one debtor representing more the 6% of the total pool; hence the credit risk is widely spread.
Each receivable is purchased outright from a business owner for a discount. Should the receivable not be paid the business owner is required to repurchase the receivable from Accutrac Capital. This obligation is evidenced and secured by a Factoring Agreement, a General Security Agreement on the Business and a Personal Guarantee form the Business owner.
How Factoring Works:
As with all investments there is an element of risk. At Accutrac Capital we strive to take as much risk out of the equation as possible. In addition to the asset backed security of a high grade commercial receivables pool the High Yield Class “A” preference share is further secured a large amount of equity contributed to the pool by the company’s principles. This equity pool currently represents one-third of the total pool. This would mean that the receivables pool would have to be impaired by over 33% for a Class “A” shareholder to take a loss.
Accutrac Capital Solutions Inc. further mitigates the credit risks associated with the receivables pool by applying industry best practices in managing the pool on a day by day basis; including setting strict credit limits on each debtor, enforcing a strict receivables verification protocol and following consistent collection practices.
Your High Yield Investment
As an investor you will hold High Yield Class "A" shares which are positioned in the second tier for our corporate finance pool. This is behind the Principals of the Company with reserves of no less than 1.2 million.
