Trust, honesty, integrity.
We provide large corporates, banks, trade credit insurers and funding program managers with fully integrated, end-to-end, solutions covering:
- The technical delivery of receivables finance & trade credit insurance programmes.
- The collection, profiling & analysis of a company's accounts receivables data.
- The operational support required to deliver a receivables finance programme.
We have significant relationships with AIG and Dun & Bradstreet and through partnerships with credit agencies, banks, insurance companies and financial intermediaries, our systems write credit limits, monitor credit risk or fund tens of millions of trading relationships.
We operate out of the UK and our offices are based in Fetcham Park - a fabulous grade II listed Queen Anne mansion built in 1705 and situated in the leafy suburbs of Leatherhead in Surrey.
Our Business Philosophy
As a company we set ourselves high standards, both in terms of the quality of service we provide our clients and by the way we conduct ourselves in the business environment.
Whilst our business often works at the forefront of technological and process change, old fashioned values such as integrity, trust, fairness and honesty are key cornerstones to the way we interact with people and with the other organisations we meet during the course of our business activities.
We treat each business relationship with equal care and we respect the moral and written commitments we enter into. We run our business lawfully and ethically and we pride ourselves on paying our suppliers promptly.
We take our responsibilities of data protection and data security very seriously and we have invested both time and money in ensuring we meet accepted data security requirements.
Our energies are channeled into building a sustainable long-term business model, with partners we trust and with whom we share common goals and standards.
Although we're only a small company, as individuals many of us come from plc backgrounds. We're used to big company protocols and we share similar needs and requirements when it comes to establishing processes and adhering to standards. We understand and respect the importance of protecting corporate image, maintaining information confidentiality and avoiding circumstances that could impact reputation risk.
Most of our corporate relationships are with global entities and we're used to dealing with the security, compliance, accounting and inertia challenges that go hand-in-hand when partnering with large organisations.
Aronova was formed in 2003 by David Baker and Annette McGinley when Amlin plc, one of the main Lloyd’s insurance syndicates, agreed to outsource its internet development team.
Through our early years we continued to work closely with Amlin, but increasingly we started looking at new product innovation, particularly in the trade credit risk space where we could leverage our knowledge of company information and of credit risk modelling.
Mike Parsons joined us in 2004 from Core Technology to focus on new products and the development of Portfolio Manager. We had worked with Mike since 1996 and he brought significant insurance and finance focussed product development experience to Aronova.
2005 saw the launch of Portfolio Manager, an Internet based trade credit risk management product that we took to market in partnership with Dun & Bradstreet. Portfolio Manager was (and still is) a huge commercial success and whilst we sold the product rights to D&B in 2010, we still continue to develop, deliver and support the product today.
In 2009 we launched Global Limits Manager - a revolutionary product that calculates credit limits and risk scores based on a daily automated feed of accounts receivables data directly from company accounting systems. At around the same time we started forging strong links with AIG, who recognised the potential of using Global Limits Manager to calculate credit limits below a credit insurance policy discretionary limit. Today we jointly commercialise the GLM product to large corporates across the world.
Over the last few years we have increasingly focused on the receivables finance markets and together with AIG Trade Finance and other partners, we've written a number of securitisation and ABL style receivables finance programmes.
To support our receivables finance activities, we launched Global Finance Manager in 2013 and developed SAP Enable and The Funding Point through 2014 and 2015. With these new products we can now provide end-to-end technical solutions to large corporates, banks, capital markets investors and insurers for the management of global receivables finance programmes.
As we write increasing volumes of receivables finance business, the scope of our involvement in these programmes has evolved from simply being a technology partner, to also providing layers of data analytics and operational management. Through the Funding Point in particular, we are now delivering ancillary services to assist Backup Servicing, Cash Management & SPV Trustee support.
Today our technology securely processes literally millions of invoices on a daily basis. Our products underpin countless hundreds of millions of pounds of trade credit insurance cover and our solutions support the funding of trade with hundreds of thousands of global obligor counter-parties.
Our products and services help funders and insurers deliver trade credit insurance and receivables finance programmes to large corporates around the world.
We provide data solutions, fraud screening, funding programme delivery products and day-to-day operational programme support.
Global Finance Manager
Global Finance Manager is a purpose built receivables finance platform, used by clients - the sellers of trade receivables, to operate and manage a receivables finance programme.
Global Finance Manager is used by large corporates to operate a securitisation or borrowing-base style receivables finance programme. It is designed to gather receivables data from a company's accounting system, calculate receivables eligibility, monitor programme triggers and provide granular visibility of the funding program.
Global Finance Manager can be used to support many different types of receivables finance programme, and when used in combination with a modern-day receivables finance structure, Global Finance Manager reduces operational risk, improves funding advance rates and eliminates the uncertainty and conditionality surrounding traditional trade credit insurance cover.
However Global Finance Manager is just one part of a suite of Aronova products that help large corporates implement, operate and manage a receivables finance programme.
So where does Global Finance Manager fit into the big picture? Well actually, right at the very beginning, both in terms of funding programme implementation and overall data / process flow.
From a funding programme implementation perspective, the establishment of a feed of data into Global Finance Manager is often the first step a prospective receivables finance client needs to take.
Once implemented, Global Finance Manager enables access to a prospective company's accounts receivable data, allows production of the Trade Receivables Report and provides insurers and funders with much of the data visibility they need to effectively structure a receivables finance programme.
From a data flow perspective, Global Finance Manager's role is to collect receivables data from the client accounting system, DUNS match the customer records, run eligibility, monitor programme triggers and determine the daily pool of eligible receivables. This eligible receivables pool can then be purchased according to the structure of the receivables finance programme ...... and this is where The Funding Point comes into play.
The Funding Point
Whereas Global Finance Manager is focussed on the start of the receivables purchase process, The Funding Point is designed to address the background operational, purchasing and reporting requirements associated with a receivables finance programme.
Delivered as a back-office receivables purchase platform, The Funding Point brings together the various different elements required on a day-to-day basis to operate a receivables finance facility.
Used primarily by insurers, funders and receivables finance programme managers, The Funding Point uses compartments to associate funders and their purchase capacity with the optimised selection of which eligible receivables are to be purchased.
On a simplistic level, The Funding Point manages the purchase of receivables that Global Finance Manager deems are eligible. But in reality that is only part of the picture, and just because Global Finance Manager deems a receivable to be eligible .... does not necessarily mean that the receivables will be purchased.
Factors such as available funding capacity, dynamic purchase pricing, payment priorities, fraud and anomaly screening, concentration management and capacity optimisation need to be considered. Compartment expenses and reserve requirements may need to be accrued, and where a single pool of eligible receivables is purchased by more than one funder, then funder specific eligibility criteria may well apply.
Fraud risk is ever present in the receivables finance worlds, and The Funding Point provides insurers and funders with various layers of fraud prevention. Programme specific review queues can be configured and behavioural analysis helps identify 'abnormal' receivables before they are purchased. Post-purchase, on-going receivables tracking highlights 'anomalies' that require further investigation.
The Funding Point controls both on or off-balance sheet transactions, and supports the purchase of eligible receivables by an SPV structure or directly onto a bank balance sheet. Operationally, The Funding Point addresses many of the role requirements of the Programme Manager, the Cash Manager, the Credit Risk Manager and the SPV Trustee.
The Funding Point is just one part of a suite of Aronova products that help insurers, funders and programme managers safely deliver receivables finance programmes to large corporates.
Global Limits Manager
Global Limits Manager automates the management of global customer credit risk, and uses live customer payment experiences, optionally supplemented with D&B credit risk data, and insurer credit limit recommendations, to set insurance compliant credit limits.
Designed specifically for those companies wanting to take more account of their own customer trading experiences when making credit risk decisions, Global Limits Manager focuses on monitoring payment performance, checking for credit policy compliance and alerting when customer circumstances change.
Compliance with the operational requirements of a credit insurance policy is not straightforward and the discretionary nature of some customer credit limits understandably raises questions about the reliability of credit insurance cover.
Global Limits Manager is endorsed as an AIG approved discretionary credit limit source and complies operationally with AIG policy requirements, delivering global customer credit limits that can be relied upon in the event of a claim.
Linked directly to the settings of an AIG credit insurance policy and interfacing in real-time with AIG’s internal underwriting systems, Global Limits Manager provides companies with credit limit certainty and the confidence to trade globally with customers on credit terms.
Global Limits Manager helps companies dynamically set and maintain global customer credit limits, where most if not all credit limits are calculated using live customer payment experiences only. A configurable credit policy determines the value bands where credit limits can be calculated using payment experience only, the thresholds where Dun & Bradstreet credit risk data needs to be used and the credit limit values where only insurer credit limits can be applied.
Customer validation is an essential part of modern credit management practice, not only to ensure the correct customer legal entity record has been positive identified, but also as a means of linking customer records to third party databases for external credit risk intelligence.
Global Limits Manager validates customer records by linking to DUNS numbers, profiling them with D&B data and situating customer records within global corporate family trees.
Proprietary address cleansing technology helps improve auto-match rates and screen based facilities help clients manually match those customer records that could not be auto-matched.
Global Limits Manager is compatible with SAP Enable for ease of implementation and links seamlessly to Global Finance Manager for the operation of a trade finance program.
Insurers, funders and program managers rely on the granular visibility of receivable data to structure trade finance programmes, efficiently operate credit insurance facilities and monitor ongoing receivables performance.
Many businesses struggle to self-build SAP accounting data exporters that satisfy insurer and funder data requirements. Significant accounting practice knowledge and expensive SAP ABAP software development resources are needed to build a compliant data export solution.
Consequently, providing detailed accounts receivable or accounts payable data can be a major issue for companies and many struggle to find IT budgets or to allocate the appropriate finance and software development resources required to run what could be an elongated IT project.
SAP Enable helps companies automate the extraction, interpretation and transfer of accounts receivable and accounts payable data. With minimal IT dependency and no SAP development requirement, SAP Enable usually reduces implementation times from months to a matter of days.
SAP Enable was built to comply with trade credit insurance and trade finance market data collection requirements. Its auditing and data mapping tools help remove data ambiguity, while minimising data security, operational integrity and non-compliance risk.
It can be linked with The Trade Receivables Report to provide an in-depth, automated analysis of current and historic receivables data, or to comply with insurer and funder seller servicer reporting requirements.
Built using native SAP code to create a self-contained package that looks and feels like any other SAP program, SAP Enable is easily installed & managed by a company’s existing SAP administrative staff. It is compatible with most versions and levels of SAP ERP (R/3) and can be configured to support an individual company’s use of SAP.
With emphasis on using standard SAP development and operational practices, SAP administrators can schedule SAP Enable to run when most convenient and output files can be written to specific directories for on-bound transmission.
SAP Enable is compatible with Global Limits Manager to support a trade credit insurance policy and links seamlessly to Global Finance Manager for the operation of a trade finance program.
Generally speaking, we do not originate insurance or funding opportunities, nor do we sell directly to the corporate world.
We operate through a network of carefully chosen alliances and partnerships, delivering trade credit insurance and receivables finance solutions to large corporates across the globe.
Large corporates are the end users and main beneficiaries of many of our products and services and our interaction with large corporates spans both traditional trade credit insurance and the operation of a receivables finance programme.
Trade Credit Insurance
We help large corporates set and maintain underwriter approved discretionary credit limits and improve compliance with their trade credit insurance policy.
Our Global Limits Manager product connects to a corporate's accounting system to take a daily feed of accounts receivable data. It then uses this data to set payment experience based credit limits which can optionally be supplemented with Dun & Bradstreet data. The credit limit methodology is endorsed by a number of trade credit insurers, meaning large corporates can achieve sub-DCL credit limit certainty.
Policy compliance is an essential part of managing a trade credit insurance facility, and Global Limits Manager helps large corporates address two key compliance elements - the identification and monitoring of stop shipment customers, and providing underwriters with policy compliant overdue reporting.
Where corporates are insured by AIG Trade Credit, Global Limits Manager directly connects to AIG's internal underwriting systems and underwriter credit limits are automatically synchronised with our systems. Global Limits Manager can still be used to support corporates insured by other underwriters, but insurer credit limits would need to be manually maintained.
Trade Receivables Finance
We help large corporates maximise their working capital finance through the effective use of their trade receivables asset.
Global Finance Manager takes a daily feed of accounts receivable data from a corporate's accounting system to drive the day-to-day operation of a receivables finance programme, dramatically reducing the corporate's operational workload and providing key stakeholders with granular visibility of the funding programme and how it is performing.
Corporates also benefit from Global Finance Manager's in-built credit risk assessment and reporting tools. Underwriter approved credit limits are calculated daily for each customer relationship using live payment experiences and payment delinquency scores help monitor credit control performance and spot where payment patterns change. Onscreen graphical analysis provides essential insight into customer risk assessment, portfolio concentrations and credit control performance.
Corporates particularly benefit when Aronova solutions are linked to AIG Trade Finance programmes, and will often see higher advance rates, lower programme costs and greater funding flexibility when compared with more traditional receivables finance or receivables securitisation programmes. In combination with AIG Trade Finance, Aronova solutions provide corporates with the flexibility to operate on or off-balance sheet funding programmes and to sell their receivables to banks and/or capital markets funders.
We work with trade credit insurers on a number of levels - providing solutions to help their insureds operate traditional trade credit insurance policies, providing the insurer itself with visibility of an insured's receivables performance, or getting involved in the assessment, deliver and monitoring of an insured's receivables finance programme.
Trade Credit Insurance
Some insured's struggle with policy compliance and the management of sub-DCL credit limits, notably when an insured is switching from a whole turnover arrangement to an excess of loss structure. In these cases, the insured may no longer have the in-house ability to manage customer-wide credit limits or to monitor for compliance events such as stop shipment or overdue reporting across the whole customer portfolio.
Global Limits Manager provides an ideal solution in these cases, and we work closely with trade credit insurers to implement and support the GLM solution where required.
Where Global Limits Manager is deployed, credit insurers directly benefit from improved policy holder visibility and the ability to more accurately manage buyer aggregates. Overdue reporting is automatically enforced and presented electronically to the appropriate underwriting team, whilst stop shipment will automatically affect customer credit limits and the insureds ability to trade on an insured basis.
As Global Limits Manager takes a daily update of an insured's accounts receivables, credit insurers can directly monitor an insured's credit management performance and can use current and historic customer account balances to more accurately set named buyer credit limits at appropriate levels.
We have a close and long-standing relationship with AIG, but we also work with a wide range of other credit insurers, both here in the UK and overseas.
Trade Receivables Finance
We work with trade credit insurers both pre and post the funding of a receivables finance programme.
Pre funding, our work is focussed on accurately capturing receivables data from the seller, providing the insurer with due diligence type analysis of the receivables portfolio and providing the insurer with tools to run eligibility scenarios against the live receivables portfolio, thereby maximising the funding programme potential.
Pre funding, the credit insurer mainly uses our automatically generated Trade Receivables Report, in parallel with Global Finance Manager to visualise seller receivables performance, assess eligibility rule settings and to tune funding programme triggers.
Post funding, insurer usage switches mainly to The Funding Point through which the credit insurer can 'portfolio manage' multiple insured receivables finance programmes. The Funding Point tackles a number of key credit insurer issues:
Fraud prevention is addressed both through eligibility criteria (an optional seller requirement to provide copy documentation and an optional obligor obligation to confirm invoice validity) and through seller behavioural analysis (the tracking of invoice patterns and trading relationships). Where document verification is required or fraud is suspected, otherwise eligible receivables will be placed on an insurer review queue and will not be purchasable until manually approved by the insurer (and possibly also by the funder).
An insurer's risk & compliance requirements are largely answered through a combination of in-built obligor verification procedures, automated obligor risk tracking (by means of a dynamically calculated payment risk score), individual and aggregate programme monitoring (through our real-time graphical analysis package) and the consistent, systematic application of agreed programme eligibility rules and settings.
In parallel, the insurer should also benefit from an overall reduction in programme operational risk through use of Aronova's single-source, end-to-end, receivables finance solutions.
We work with banks & capital markets funders to help operate and support their trade receivables finance programmes. Our technical and operational solutions are used to support on and off balance sheet transactions, often including the dynamic calculation of purchase pricing, accruals and reserves.
Our work with banks usually involves the purchase of receivables directly onto the bank's own balance sheet, whereas our capital markets funders tend to purchase receivables through the issue of notes in an SPV type structure. In both cases, Global Finance Manager is normally used to collect receivables from the seller and to calculate a daily pool of eligible receivables. Depending on whether the programme is insured or not, this may also involve links to credit insurer named buyer limits. The Funding Point then optimises which receivables to purchase and manages the purchase process, be that directly in The Funding Point, or remotely through a bank or funder system.
There are always of course twists to this, and some of our more complicated funding structures involve a single pool of eligible receivables being simultaneously purchased by multiple banks and capital markets funders, each with their own eligibility criteria, purchase capacities and receivables concentration limits.
Banks and other third parties can easily interact with Aronova systems. Where receivables are purchased through a third party system (e.g. a bank's internal purchasing platform), the optimised selection of purchasable receivables is sent to the third party through an electronic file exchange. Once the third party has purchased the receivables, electronic confirmation is sent back to The Funding Point and invoice eligibility, pricing and reporting is updated.
Risk Monitoring & Reporting
Banks and capital markets funders need to satisfy their reporting obligations to risk committees, investors and compliance units. In response to these requirements, The Funding Point includes a purpose-built real-time graphical analysis section through which banks, funders and insurers can analyse and profile pools of receivables on an individual or aggregate seller basis.
Whilst the graphical analysis section is used primarily to monitor and assess obligor, country and sector aggregations, to further satisfy bank, funder and insurer risk reporting requirements we now also include analysis by obligor parent grouping, invoice ageing, receivable profile and by obligor delinquency risk banding.
Obligor delinquency risk scoring is a relatively new development in our receivables finance products, but draws on the many years of experience we have of assessing payment risk in our trade credit insurance products. The risk of an individual obligor paying its seller on a delinquent basis is calculated daily and obligor risk scores are now available throughout our receivables finance solutions.
Aronova does not actively seek to originate insurance or funding opportunities, nor do we sell directly to the corporate world, and therefore our relationships with selected originators, intermediaries and key transactional partners is strategically essential.
Our work with these partners largely focusses on origination support, opportunity development and the initial phases of seller due diligence. Our activities often include the collection of data from seller accounting systems, data analytics, producing receivables analyses in the form of our trade receivables report and running free trials of our systems and operational solutions.
As opportunities transition into active funding programmes, many of our originators or transactional partners need help managing and operating their funding programmes on a day-to-day basis. To address these requirements, we additionally provide specific reporting and operational services to support the role requirements of the backup servicer, the cash manager and the programme manager.
Our business is as much about people and relationships, as it is about technology and data. The directors and shareholders of the company are:
David Baker - Managing Director
David has spent his entire business life working with company information and developing information based products and solutions. From the mid '80's to early 90's, David worked in both mainland Europe and in the UK for The Infocheck Group, before joining AMA (Hilton Malcolm Underwriting) to develop one of the first transactional online trade credit insurance solutions.
In 1997, David moved into the Lloyd's underwriting market and became one of the founding Directors of Harvey Bowring Credit (later Amlin Credit) where he was responsible for the development and ongoing delivery of Creditinsure.com – one of the most advanced trade credit insurance products of its time.
David is married with two children. He adores red wine and really enjoys rugby, both at youth and senior level. He supports Newcastle United and plays a mean round of golf. He speaks pretty good French and would one day love to live in the USA.
Annette McGinley - Projects Director
Annette has spent many years working in software development, predominately in the media and insurance industries. While working for Saatchi & Saatchi’s media subsidiary in the mid 90’s, Annette was primarily responsible for the design and development of the first UK direct response analysis optimisation system.
Annette was one of the founding members of Amlin Credit, a Lloyd's based trade credit insurance provider and was heavily involved in the development of their online trade credit system - Creditinsure.com. During her stay at Amlin, Annette was also involved in the development of a number of marine insurance systems and participated extensively in the development of the marine hull insurance product Marinsure, the B2C craft insurance product Boatinsure and the marine war insurance product Marinsure War.
Although Annette has been known to visit the golf driving range, she breaks the Aronova trend by not playing golf. Annette considers shoe shopping in a foreign country the ultimate getaway.
Mike Parsons - Technical Director
Mike’s business life has been spent in software development, working in a number of diverse areas from flight simulation to insurance. Prior to working for Aronova, Mike headed the software development arm of an IT consultancy in the City of London specialising in the financial and insurance markets. During this period he worked on the design and implementation of a number of transactional insurance and business related web solutions.
Mike is married, a keen golfer and he tries to play as often as possible. He's an avid sports fan following football, rugby union and golf. He loves to travel and has visited many far-flung parts of the world.
Our offices are situated in Fetcham Park, just on the outskirts of Leatherhead, Surrey.
The building itself was built in 1705 and is an historic, grade II listed Queen Anne mansion, set in private grounds originally landscaped by George London over 300 years ago.
Aronova Interactive Limited
T : 01372 371 080
F : 01372 371 001
E : email@example.com
Getting to our offices is easy. We are only two miles from junction nine of the M25 motorway and Heathrow and Gatwick airports are easily accessible within 25 minutes. There are frequent rail services to London Waterloo (35 minutes) and London Victoria (40 minutes).
The entrance to Fetcham Park is via Badingham Drive and the Sat Nav reference is KT22 9ES. The gates are immediately on your right as you turn off Lower Road. Visitor parking is available in the grounds, and overflow parking in St Mary’s Church. Further details and directions are available below.
The photograph of the rear of Fetcham Park is reproduced with the kind permission of Emma Sekhon.