Sell receivables on an ongoing basis with forward flow.

Is your company constantly grappling with payment defaults? This is precisely where the forward flow principle comes into play: With a forward flow agreement, you sell your outstanding receivables at regular intervals and gain a fresh cash injection in return.

What is a forward flow agreement?

The forward flow principle is worthwhile for companies that are constantly grappling with payment defaults, e.g. telecommunications providers, online retailers, public transport operators or energy utilities. But it is also an attractive solution for banks. 

A forward flow agreement is a purchase contract within the scope of which receivables portfolios are sold and transferred at set intervals over a specific period. The time frame and intervals at which the seller transfers the receivables packages to the buyer are agreed in advance. The price is a percentage of the nominal value that is calculated beforehand and applied to all receivables transferred.

Benefits of a forward flow agreement.

With the help of a forward flow agreement, companies can permanently reduce their inventory of overdue receivables and banks can keep their NPL (non-performing loans) ratio at a consistent level. In both cases a forward flow agreement ensures that outstanding receivables are turned into fresh liquidity at regular intervals. 

In the context of the total receivables volume, both parties save a lot of time and coordination effort through a forward flow agreement. Instead of having to start new negotiations for each receivables package, the terms and conditions only have to be determined once. Ideally they will then form the basis for a long-term partnership based on trust and ensure the optimization of the seller’s processes.

  • Consistently low NPL and receivables inventories
  • Planning certainty in liquidity management
  • Save resources in accounts as well as in dunning and legal departments
  • Long-term partnership and therefore reduced coordination effort

Would you like to sell your receivables?

EOS is a byword for longstanding experience and fair purchase prices. Simply make an appointment for a consultation with us. Our experts will take care of everything else.
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Step by step to a forward flow deal.

A forward flow agreement works in a similar way to the traditional sale of receivables. The deal can be completed in just a few steps:
1. 1.

Your company wants to monetize bad debts.

You are experiencing a constant stream of unpaid bills and overdue loan instalments and decide to sell a steady flow of some of these receivables over a specific period.
2. 2.

Your company offers to sell its outstanding receivables to EOS.

To do this you provide us with data on the receivables under negotiation. On the basis of the data, which is anonymized for processing in accordance with data privacy legislation, we determine the purchase price for the first portfolio.
3. 3.

We agree on the terms and conditions of the deal.

Next, we agree on a time frame and the intervals at which the receivables packages will be transferred. We also determine the conditions under which future portfolios will be purchased. These include, for example, agreements on the structure of the portfolio. 
4. 4.

The first receivables package is transferred.

Once the agreement has been signed the first package is transferred to us. In return, your company gains fresh liquidity and planning certainty. This process continues until the term of the agreement ends. If the forward flow agreement has represented a good deal for both parties there is nothing to prevent an extension of the contract.

All the information you need on the sale of receivables.