Example of an operation
To better understand how pools work, let us create an example of a possible operation on our platform.
This example focuses on judicial assets, but our platform is not limited to them. At the time of writing, we support the following assets:
Credit notes;
A wide range of judicial assets;
Invoices.
Comercial notes
Card receivables
We plan to expand the range of assets supported by the AmFi platform. See our Roadmap.
Imagine an originator with a great track record, an already established customer base and specialized in state court-ordered debts.
State court-ordered debts¹ are a very common type of judicially recognized debt in Brazil that a public entity must pay to its creditors, usually in chronological order of priority. Examples include back wages of civil servants, indemnities and pensions.
State court-ordered debts, specifically, work as follows:
The creditor wins a lawsuit against a public entity (usually a state or federal government) and the court acknowledges the debt.
The debt is added to the list of state court-ordered debts of that public entity.
This entity pays according to the order of priority established by law.
The creditor is notified and receives payment when the debt is paid.
However, the payment of state court-ordered debts is limited by the budget and can take years due to the large number of recognized legal claims.
In this scenario, these customers, referred to here as "borrowers," approach the originator and negotiate a fee to anticipate the money.
The originator receives the money on the due date of the lawsuit but at full value.
After going through the onboarding process and the KYP check and structuring their pool with us, the operation of this originator with an AmFi Pool would look like this:
Customers who want to anticipate their receivables are assisted by the originator;
The request is sent to the Pool;
The pool's smart contracts automatically evaluate the eligibility criteria (operational risks, portfolio concentration, etc.);
If approved, the digital signature and assignment of the asset to the securitization company takes place, as well as the creation of the NFT of the guarantee that will back the transaction;
A debenture is issued through the SPV associated with the pool, and the investors who invest in the pool purchase a portion of this debenture, financing the operation;
The disbursement of the operation takes place;
The originator is responsible for ensuring that the borrower repays;
Repayment is made directly to the securitization account.
These operations can be continuous or non-continuous:
In a continuous operation, the capital provided by the investors is held for a certain period of time, withdrawal is possible only at the end of the operation, and once the repayment of the purchased assets has been made, the pool has cash again to buy other assets.
In a non-continuous operation, assets are purchased only once and, as repayments occur, these amounts are amortized to investors. Pools are divided into tranches, learn more.
Pools are divided into tranches, learn more.
¹In Brazil, these are called "precatórios".
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