Accounts Receivable Financing "ARF"

Provides off-balance sheet liquidity and credit protection to the supplier, who initiates the program. This provides a flexible instrument to the supplier to convert invoices into immediate cash.

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Benefits to Suppliers and Buyers

Improved cash flow of supplier who receives immediate payment on Accounts Receivable

Frees up supplier’s bank lines to finance long-term investments and growth

Flexible funding solution matching order volumes without requiring a collateral

Complete transfer of credit risk from supplier to Evolution

Improves balance sheet metrics of supplier as receivables are sold on a non-recourse basis

Supplier

Goods

Buyer

Invoices

Supplier

Accounts Receivable Financing Contract

Supplier

$ Discount Payment

Buyer

$ Payment

A buyer agrees to purchase goods from a supplier. The supplier sends invoices to the buyer with credit terms of up to 360 days.

The supplier contracts with Evolution to receive early payment for its Accounts Receivable, at a discount.

Evolution pays the supplier for its Accounts Receivable, less a discount for early payment.

The buyer pays Evolution according to the invoice terms.