info@debt-center.com
3rd Floor 207 Regent Street, London, United Kingdom, W1B 3HH

Bond

Dear investors,

Allow us to present the bond subscription of Debt Management Center s.r.o. on behalf of our parent company, operating in the debt financing market in Central Europe. As you have surely registered, the situation around “Brexit” has caused logistical, administrative and legislative problems for many companies operating in the common European market on the one hand, but has given rise to many business and investment opportunities on the other.
Due to the constant increase in our customers from the Central European region, limited competition in the debt financing market in the Czech Republic, Slovakia and Poland and, last but not least, very high demand for accelerated debt financing through our main product – Factoring (see below) – we have decided to fully enter the debt financing market through our branch on the Czech market in order to achieve the maximum standard of client services and speed up the entire administration process and thus transactions themselves. Due to the unclear future regarding the harmonization of EU legislation in the UK, current administration through our UK office is no longer fully possible; all our clients and their transactions have been and are being transferred to new legislation in line with business practices in the Central European market.

We are therefore coming to the Czech market with a standardized product with an extremely efficient, long-term optimized process of processing, evaluation and insurance of transactions in a non-stop 24/7 regime for all customers, i.e. a concept that has managed to gain us a position in this huge but often unattractive and invisible financing market for non-participants in the past which, however, surpasses standard banking products and options in many cases and situations.

Our vision

The vision of Debt Management Center s.r.o. is to increase the market share in the field of debt financing on the Czech, Slovak and Polish markets. The goal is to achieve above-standard services in terms of speed, simplicity, price, security, flexibility and transparency.

Current status

Due to legislative changes and their possible impacts, all transactions of companies from the Central European region (primarily CZ, SK, PL) were transferred from the parent company Finance & Economy Ltd to the subsidiary Debt Management Center s.r.o.

In the period of June/2020, we therefore have a number of clients that we are able to finance and administer with our own resources and a team of our experts and assistants, including all legal regulations and changes arising from the transformation of contracts.

Current clients were accepted and implemented on the basis of the criteria of our parent company; these are logistics, engineering, export and wholesale companies with a turnover of over 5 million EUR and based in an EU member state.

The situation around Covid-19 is unhappy, but very positive news for our market, which made it necessary to speed up the circulation of money and trade receivables, putting our subsidiary in a situation where, despite significant opportunities and a large influx of new clients, we are not able to financially cover the total demand of all new opportunities in the Central European market. In the current situation, we are fully implementing transactions of existing customers, including customer service, compliance, receivables insurance and the quickest possible execution of transactions. However, the situation surrounding Covid-19 forces us to accelerate our entry into the Czech, Slovak and Polish markets in order to achieve the highest possible number of satisfied transactions and thus increase our market share.

Use of funds from bond issuance

Funds obtained from corporate investors, investment funds and individual investors will be used exclusively to finance our existing and new clients in the area of financing trade receivables using non-recourse factoring – i.e. financing with insurance. This form of financing allows our clients to collect the amount they claim from the customer almost immediately. After immediate evaluation of the customer and securing the debt insurance, these funds are credited to our client’s account, while we, as the implementer, collect the commission arising from the difference between the amount paid and collected after deducting the insurance for the specific payment. The long-term average of the allocated funds for payments is approximately 1.22% per month in our favor, with the proviso that even if the amount is not paid by the supplier, there is no loss, as the debt is fully insured with partner insurance companies.

Existing and new business partners

Existing and new clients undergo continuous control and continuously submit a list of their customers with whom they expect the transaction to be completed in the next 1 month through factoring with insurance. These customers are continuously inspected so that unnecessary delays and hold ups do not occur in the event of implementation. We therefore focus on clients with stable supplier – customer relationships, companies with a turnover of over 5 million euros located in an EU member state. Priority is given to transactions within Central Europe, especially the Czech Republic, SK, PL, DE, AT, primarily trade receivables ranging from 14 days to 3 months.

Unsupported projects and business partners

Due to the need to evaluate the stability and health of business partners and their suppliers, we do not implement the following due to the risk and unpredictability of client behavior and especially the impossibility of 100% insurance of debts by clients:

  • Start-ups
  • Companies with long-term losses
  • Companies with a history shorter than 5 years
  • Companies with a turnover of less than 3 million EUR
  • Construction companies with a history shorter than 10 years
  • Companies with an equity lower than 5%
  • Companies in insolvency/liquidation
  • Companies based outside EU member states
  • Companies with a hidden owner or an unclear ownership structure

Other

Debt Management Center s.r.o. also marginally deals with the purchase of receivables in the maximum nominal amount of 2 million EUR with an approved repayment schedule, the origin of which was subject to a government public contract and the delivery or execution of which was 100% confirmed by handover documentation. These are most often contracts for work for city districts, small towns or municipalities that pay for construction work from external sources and where there is no danger of their bankruptcy.