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Asset intelligence

The valuation of assets, applying specialist knowledge, information, skills and experience.

Asset Intelligence Blog

Accounts Receivable

Lending Understanding With Receivables Review

Location: UK
Market: Banks and Asset Based Lenders
Asset Class: Accounts Receivable
Challenge: Our customer (the lender) had identified significant disputes relating to assigned debts following an in-house telephone debtor verification of their client's sales ledger. In addition both debt turn and dilution levels had increased within the client's sales ledger.
Solution: GoIndustry DoveBid Valuation Services completed a full review of the company’s deposits to its own bank accounts, together with a comprehensive credit control and debtor verification review.
Result: GoIndustry DoveBid Valuations Services identified direct bankings (by our customer's client) totalling some £80,000 which also led to significant disputes. We also identified pre-invoicing and early deliveries. As a result of our advice our customer placed their client into administration in order to try and recover the losses that had been incurred.
 

GoIndustry DoveBid Valuations Services Delivers a Dilution Solution

Location: UK
Market: Banks and Asset Based Lenders
Asset Class: Accounts Receivable
Challenge: The client of our customer (the lender) managed their invoicing processing through their own EDI system but in addition they also received self-bill invoices from the same customers. As a consequence all EDI invoices had to be adjusted from their EDI system once the self-bill invoice was posted. The transaction code used for the adjustment also included adjustments for contra accounts, rebates, settlement discounts and other general adjustments. Therefore a true dilution percentage was difficult to quantify.
Solution: GoIndustry DoveBid Valuation Services created a separate transaction code specifically for any EDI related invoice reversals.
Result: GoIndustry DoveBid Valuation Services was able to calculate accurate dilution figure which allowed our customer to make an informed decision in respect to the pre-payment percentage offered against their client's account receivables.
 

Bill of Exchange Payments Prove To Be No problem For GoIndustry DoveBid Valuation Services

Location: UK
Market: Banks and Asset Based Lenders
Asset Class: Accounts Receivable
Challenge: The client of our customer (the lender) received payments from a major buyer by way of a bill of exchange (BoE). Upon receipt the BoE was allocated to the ledger and the total value was transferred to a separate nominal ledger code. The result of this action meant that although the gross eligible accounts receivable ledger balance was reduced a valid debt still remained.
Solution: Each invoice was detailed with a separate BoE nominal code.
Result: Each separate BoE nominal code was able to be extracted and transferred meaning that these details could be aged, therefore allowing this valid debt to be included within the invoice finance facility.
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