Security and collection control
The Receivables Investor structure combines independent evidence of customer switches with a controlled collection mechanism for qualifying supplier commissions.
Independent switch confirmation
Within approximately five days of a sale being logged with The Energy Shop, the supply switch can be checked against independent industry data. This provides evidence that the underlying customer switch has occurred.
Controlled collection
Because supplier commission currently flows via The Energy Shop, SwitchFair intends to agree an escrow account, segregated collection account, trust arrangement or equivalent mechanism for qualifying commission attributable to SwitchFair.
Structure
The £100,000 receivables allocation is used only for qualifying affiliate pre-payments and does not fund salaries, rent or other overheads.
Provides £25,000 of capital.
Holds capital separately from the operating business.
Receive approved pre-payments for qualifying energy customers.
Validate sales and pay qualifying commission.
Receipts replenish the account and support investor repayment.
Condition precedent
The escrow, ring-fencing, security priority and collection-control measures are established before investor capital is deployed.
The relevant receivables, security priority, collection mechanism and enforcement rights are documented and put in place as conditions precedent.