Treasury Management

The concept of factoring has been around since the beginning of commerce. Basically, factoring is a financial transaction in which a business sell its accounts receivable (i.e. invoices) to a third-party, which will act as the Factor, at a discount in exchange for immediate payment to improve ongoing cashflow management and short-term liquidity.

Factoring is also often referred to as accounts receivable financing and has become a popular financial planning tool amongst all types of business as an alternative to traditional borrowing and other forms of debt management.

This can be further enhanced by lowering the amount of tax paid in your home country by engaging an offshore factoring company to manage all of the related transactions in a tax-neutral jurisdiction. This is commonly referred to as offshore factoring or fiduciary factoring.

We will establish and manage an intermediary company to act on your behalf and through which it will administer all factoring activities by interposing our service company between you and your client. We will undertake all invoicing, payment processing and funds transfers.

With the emergence and expansion of e-commerce, there has been renewed demand for re-invoicing and transfer pricing services. Essentially, re-invoicing involves the use of a corporation established in a tax-neutral jurisdiction to act as an intermediary between an onshore business and its customers. The profits of this intermediary corporation and the onshore business allow the accumulation of some or all profits on transactions to be accrued to the offshore corporation.

Although these companies are often used by importers and exporters, this business model can be advantageous to almost any industry and can be effective both domestically and internationally. These intermediary corporations are also often used as “in-house” collection agencies to help improve revenue management and enhance overall global tax exposure.

Similarly, the concept of transfer pricing – whereby the price that is charged by one branch of a company for products or services it provides to another division of the same company is transferred through an offshore intermediary – is another common method used to separate and establish new profit centres as each division’s profits and losses are calculated separately. For companies that operate internationally, this means the products or services produced in one country are invoiced in the currency of that country and then re-invoiced in the national currency of the receiving branch.

Although this is a method often used by large multi-national companies, this technique can also be applied to different branches or divisions of a company in the same country. In this scenario, the prices for products or services produced by one division can be transferred through an intermediary company established in a tax-neutral jurisdiction and re-invoiced to the receiving branch. To maximize the potential of this type of transaction, the relationship between the various entities must be considered to be at “arm’s-length”.

We will establish an intermediary company to act on your behalf and through which it will manage all re-invoicing and/or transfer pricing activities by interposing our service company between you and your client or affiliated entities. We will undertake all invoicing, payment processing and funds transfers.

The global increase in cross-border transactions and multi-jurisdictional approach to the provision of goods and services has forced many companies to consider the centralisation of their treasury management functions in order to reduce processing times, simplify cashflow and avoid unnecessary duplication of activities between intra-company branches and affiliates.

Increased operational complexity and business growth aside, the trend towards a centralized treasury management centre is a direct result of the effects of globalisation and the demand for international trade settlement solutions following a relaxation of currency regulations in many countries – e.g. China. Factoring and re-invoicing have traditionally been the core activities of treasury management centres but currency management and the growth in demand for shared intra-company services is also a developing trend – as more companies seek to improve efficiency, control and costs.

The goal to improve overall accounting practices and risk mitigation can also be achieved by managing all related intra-company financial transactions in one centralised treasury management centre in a tax-neutral jurisdiction.

We will establish an intermediary company to act on your behalf and through which it will manage the required treasury management functions for your company and related entities. We will undertake the processing and administration of all payments, currency transactions and funds transfers.

Many organisations employ staff outside their home country. In doing so, they may encounter complications concerning such matters as exchange controls and taxation. The use of an offshore company to employ the staff and pay their salaries can resolve such difficulties and reduce the costs associated with payroll, travel expenses and administration. This may also provide tax and social security benefits for the employees.

We will establish an intermediary company in Belize to act on your behalf and through which it will manage the required payroll functions for your company and related entities. We will undertake the processing and administration of all payments, currency transactions and funds transfers.

We can provide a comprehensive range of global custody services through its network of internationally recognised and highly reputable service providers offering clients with multi-currency custody, settlement and distribution services encompassing a wide range of financial instruments.

We will establish an intermediary company to provide the necessary ‘back office’ functions and to hold the underlying assets, carrying out the administration and management of the company, and arrange the provision of the registered office, directors and secretary in a tax-neutral environment.

Nowadays, with the internationalisation of world economies, global financial management and participation in an array of cross-border transactions is more common than ever before. Such opportunities are now available to both small and large investors alike and many investors prefer to hold these investments through the use of an offshore structure.

We will establish an intermediary company to act on your behalf and through which it will manage and hold the underlying stocks. We will undertake the processing and administration of all related investment and brokerage transactions and funds transfers.

With appropriate arrangements and corporate structuring, the following advantages can be achieved:

• Reduce rates of commission
• reduce overall tax liability
• enable profit shifting between cost centres
• reduce onshore operating costs and administrative functions
• enhance privacy and confidentiality on all transactions