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What checks does our due diligence include?

Pre-Financing  Factoring 
Seller company checks
  • Checking of several external credit scores (CH: CRIF; Bisnode; Creditrefrom, DE: Schufa)
  • Analysis of financial statements of past 2 years if available (Balance sheet & income statement)
  • Analysis of bank statements when onboarding the client
  • Reputation check of company and management on the internet and social media
  • Checking internal payment history if available
  • Debt enforcement extract
  • Checking of several external credit scores (CH: CRIF; Bisnode; Creditrefrom, DE: Schufa)
  • Analysis of financial statements of past 2 years if available (Balance sheet & income statement)
  • Analysis of bank statements when onboarding the client
  • Reputation check of company and management on the internet and social media
  • Checking internal payment history if available
  • Debt enforcement extract
Debtor company checks
  • Review of debtor lists with corresponding external credit reports
  • Checking for double mandates of manager at the seller and debtor company to prevent collusion
  • Checking of several external credit scores (CH: CRIF; Bisnode; Creditrefrom, DE: Schufa, International: D&B)
  • Verification of existing business relationship between debtor and seller (Only in Open factoring)
  • Seller to provide debtor contact person to potentially verify invoices
  • If available, historical internal payment behaviour of the debtor
  • Reputation check of company and management on the internet and social media
  • Checking for double mandates of manager at the seller and debtor company to prevent collusion
Invoice checks
  • Reconciliation of the invoice and potentially supporting documents (e.g. confirmation of delivery etc.)
  • Invoice not overdue and not issued more than 30 days ago
  • Note: For some particular pre-financing deals the underlying document may differ from an invoice. Accepted underlying documents may vary from contracts, to purchase/licensing agreements or to other documents that prove some future cash flows. For more details regarding the underlying document of one specific deal please refer to the comment box in the deal overview.
  • Validation that service/goods have been delivered by checking invoice document in combination with verification document
  • Reconciliation of the invoice with supporting documents (e.g. confirmation of delivery etc.)
  • Invoice not overdue and not issued more than 14 days ago
  • Ensuring clearly highlighted Advanon IBAN on the invoice document
  • Inquiry regarding the assignment of invoice (only Open Factoring) by one of the following steps:
    • Calling the debtor directly to verify
    • Receiving an email confirmation from the debtor
    • Receive a forwarded email from the debtor (sent to the seller)
Updated on May 23, 2019

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