Structured financing
“Structured fi “Structured financing” is a financial product that comprises a combination of different basic financial solutions. This includes, for instance, certificates and reverse convertible bonds, various factoring solutions, and repurchase transactions. The combination of different models creates an individual product with an independent risk profile and financial behavior.
It can also result in very different tax considerations. nancing” is a financial product that comprises a combination of different basic financial solutions. This includes, for instance, certificates and reverse convertible bonds, various factoring solutions, and repurchase transactions. The combination of different models creates an individual product with an independent risk profile and financial behavior. It can also result in very different tax considerations.
Structured financing has a number of benefits:
- Meeting individual customer wishes
- Increasing profit margins of issuer
- Better consulting possibilities of bank with respect to customer
- Tax benefits for customer (e.g. avoids speculation tax or not 100% capital guarantee)
- Closes product gaps
- Advertising for the issuer
Good to know
Factoring is a purchase, not a credit transaction. It describes the ongoing purchase of short-term, future receivables from product deliveries and services as well as their administration and debtor accounting, dunning, and collection work.