The platform is assisted by an external Credit Broker which relies on a team of financial analysts, experts in credit analysis and corporate finance. Additionally, the platform has a partnership with a top tier rating agency that issues certified ratings on Italian businesses.
Businesses that access the platform are subject to a preliminary screening and monitoring period which enables the credit broker to deeply understand specific aspects of every single company from an operational, commercial, financial and fiscal point of view. These analyses could however not be sufficient to prevent frauds from business managers, made, for example, through the assignment of forged invoices. Thus, in most cases, the platform will first address the debtor to assess the potential invoice seller. In this way invoices may be then considered as certified.
A contract of assignment is formed when a formal acceptance is returned to the offeror’s proposal. The buyer and the seller communicate via email and both have to digitally sign the letter of proposal and the letter of acceptance.
The platform is responsible for all aspects of the notification process which is fully automated through certified e-mails.
The platform does not actually handle cash transfers but organises every aspect of the transaction. For example, the buyer receives a message that contains seller’s bank account details while, with respect to the investor’s final settlement, the original debtor receives, along with a formal notification, all details necessary to extinguish its debt.
Failure to repay debts at maturity may be due to various causes. The Platform provides all the necessary support and arranges for the appropriate recovery actions.
Yes, the platform offers the opportunity to underwrite policies with leading insurance companies in the trade finance business, the costs of which are subject to separate quotation.
Yes, as long as it is identified in Italy with a valid fiscal code or a permanent establishment. In this respect, Crowdcity and/or its partners can provide legal, accounting, tax and administrative assistance to ensure full compliance to the Italian law and fast access to the Invoice Exchange.
Besides the discount rate agreed between seller and buyer, both parties pay a one-off fee the first time they subscribe the platform service. The discount rate includes a commission that depends on the size of the invoices being assigned, which is to be considered gross of Value Added Tax.