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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
  • 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 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 13, 2019

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