Fronting structure

Combine the benefits of leasing with the assignment of receivables and the end-customer risk to SGEF

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Preservation of liquidity

Fronting enables you to finance products or services for your customers without having to use your own resources

No increase in external resources (liabilities)

For the end customer, this is an off-balance-sheet solution

No risk to the partner from the end customer

As a partner, you don’t bear the credit risk of the customer. Instead, it is transferred to SGEF

Other advantages of the fronting structure

You maintain a direct business relationship with your customer, invoice them, and they pay you directly, even though SGEF is providing the financing.
You pay rent to SGEF, which may include insurance.
In terms of the services and items being provided, you only bear risks associated with service delivery and the existence of receivables.

SGEF assumes the credit risk of the customer. If the end user is in arrears, SGEF will recover the unpaid payments directly from the customer, freeing you from this risk.
If there is no delay from the end user, SGEF will not enter into a direct relationship with the customer during the financing period. You remain the sole point of contact for the end user.

The fronting structure is a unique product that combines the benefits of leasing with the assignment of receivables and the end-customer risk to SGEF. The partner enjoys a direct relationship with their client while also benefiting from SGEF financing.

The fronting structure allows partners to provide their customers with products and services without bearing their credit risk, while retaining the ability to invoice and collect payments. The end user remains in direct contact only with their usual partner, and they only learn about the assignment of receivables to SGEF if they default on their payment obligations.