Risk Reporting

For the Professional Fee Funding and Whole Ledger Funding Lending Strategies, it is a Condition Precedent that End Borrowers must utilise Apxium’s Accounts Receivable Automation Software and Payments Technology. This technology is deeply data integrated with Firms’ Practice Management Software with real-time synchronicity. This ensures real-time visibility over a Firm’s accounts receivable ledger and the payment status of every invoice. Combined with the technology’s automated payment write-back (Accounting journal entries) and payment reconciliation process, this ensures real-time debtor risk performance. The real time synchronisation also captures manual ledger adjustments, such as credit notes, reversals, cash payments etc., ensuring error free loan advance rate monitoring to mitigate the risk of loan-to-value ratio covenant breaches.

Moreover, the Payments technology provides visibility over the identification and payments performance of every single client of the Accounting Firm. This level of transparency ensures real-time risk management, with risk metrics with Lenders to gain comfort over the performance of their loans.

With regard to formal Financial Covenants and Reporting Covenants, the following is required by End Borrowers (noting this may be subject to change, along with variations applied to suit differing credit profiles):

Professional Fee Funding

• Provision of Annual Financials.

• Apxium’s data integration with the Firm’s Practice Management Software ensures real time, automated reporting associated with: collections performance; outstanding/paid invoices; Aged Receivables reporting and more (see above).

Whole Ledger Funding

• NTA min $500k

• DSCR 1.1x

• Collateral and Fees Account to maintain a minimum cash balance, subject to weighted average invoice size

• Month End WIP Reporting (opening, movement, write-off and invoiced)

• Provision of Annual Financials (more frequently for lower credit quality Firms)

• Apxium’s data integration with the Firm’s Practice Management Software ensures real time, automated reporting associated with: collections performance outstanding/paid invoices; Aged Receivables reporting and more

Taxation Funding

• Annual Provision of statutory financial reports

• Monthly Provision of Integrated Activity Statement & Tax Accounts

• Minimum Debt Service Coverage to be maintained at 1.1x

• Minimum Net Tangible Assets (NTA) > $200k to be maintained