Description

Bank of America Merrill Lynch’s Receivables Protection Put offers you the right, to put receivables due from a specified customer or counterparty at a predetermined price (often 100 cents on the dollar) for prompt payment in the event of the customer or counterparty’s insolvency during a specified period. Fees for this product are determined as basis points per month or year on the notional amount of protection.

Benefits

In cases where you face a stressed customer, an RPP allows you to maintain an uninterrupted relationship with that customer on consistent trade terms. In cases where you are looking to expand business to an existing customer beyond established credit limits, or develop a trading relationship with a new customer, an RPP allows you to move quickly without the burden of clearing new or modified internal credit approvals. The use of an RPP in each case is kept strictly confidential and not disclosed to your customer or any other party.