Financial Backup Servicing
To refinance receivables-based business models (e.g., purchase of receivables), companies often utilize insolvency-proof securitization structures such as ABS, ABCP, factoring, forfaiting, or promissory note loans. These financing instruments typically require the appointment of a backup servicer as collateral by the refinancing partners and banks. Becano’s Financial Backup Servicing is specifically tailored to the financial, banking and asset-backed finance industries and offers both lenders/financial service providers and borrowers a range of specific services to secure receivables and maximize usage opportunities.
The balancing act between operational readiness, costs and risk
Backup servicing requires a high degree of operational readiness. This includes having the necessary expertise and the required systems and technologies in place to ensure the seamless transfer of servicing activities. Regular tests and simulations are essential to ensure that the backup servicer can guarantee the level of service. Furthermore, the financial backup servicing function involves access to and possibly the transfer of sensitive customer data. Data security, data protection, and competitive neutrality must therefore be top priorities, and robust measures must be taken to protect against unauthorized access and data breaches.
How can Becano help?
If your business is planning to use one of the above-mentioned financing instruments for refinancing purposes, Becano is a suitable and trustworthy partner for providing the corresponding financial backup servicing services. For banks and other refinancing institutions, we handle receivables management and payment processing, ensuring the continuity and stability of cash flows. Becano offers an innovative, competition-neutral concept for securing receivables-based financing structures. With many years of experience in asset-based financing solutions and the operation of complex systems, we guarantee stability and process continuity.
Added-value solutions for banks and investors
Dedicated to the specific needs of the finance and banking industry, our modular services provide confidence to the process and its financing transactions:
Securing receivables-based financing structures
In financial backup servicing, Becano takes on tasks in default situations that are usually assigned to the operational partner (OpCo) in structured financing. These include accounts receivable management and payment monitoring, taking over receivables management and collection, accounting and reporting tasks, and connecting or taking over IT systems and processes.
Protecting the interests of investors and financing partners
Risk mitigation:
The appointment of Becano as financial backup servicer reduces operational default risk from the perspective of investors and banks/refinancing partners.
Crisis intervention:
Rapid response capability in the event of payment disruptions or covenant breaches.
Safeguarding investor interests:
As financial backup servicer, Becano monitors certain KPIs of the borrower or OpCo on request, even before a default occurs.
Fiduciary duties:
Acting as a fiduciary, the financial backup servicer acts in the interests of the creditor structure and the contractually agreed ranking (waterfall model).
Support for borrowers
For many companies, access to some refinancing options is only possible if they find a financial backup servicer who will cover worst-case scenarios at fair terms. As this gives investors greater confidence in the quality of the structures, Becano’s financial servicing services help to broaden the range of refinancing structures on offer.
Transparency and payment acceleration
Invoicing, payment transactions, receivables management, and collection procedures are guaranteed even in the event of a borrower’s insolvency.
Data storage
Even in the worst-case scenario, Becano IT systems guarantee the secure storage and safekeeping of relevant portfolio and customer data.
Reduction of risk costs by reducing operational default risk
We step in when others pull the ripcord. Through operational hedging and settlement of receivables as well as securing cash flows at market-proven costs.
Crisis intervention
Becano Backup Servicing enables the bank to respond quickly to disruptions in customer relationships. It ensures that investors have access to transparent reporting and payment data even in the worst-case scenario.