Cession is the quickest way to convert receivables on a company’s balance sheet into cash and invest it in the company’s future development or other purposes.
By executing cession transactions:
Administration costs related to the monitoring of debt amounts and control of the debt recovery process are significantly reduced
Provisions for doubtful receivables do not have to be made for assigned debt amounts
VAT paid in advance may be recovered from the State for the amounts cessioned
As a result of the cession transaction, the company improves its balance sheet indicators, incl. economic profitability or ROA (return on assets)
By implementing cession transactions, company reduces the workload of the Finance Department by implementing financial accounting in accordance with the new IFRS9 standard (less consumption of resources, fewer problem situations, fewer explanations, etc.)