WE ... guarantee payments

Just as the goods in various industries have long been traded internationally, payments know no borders either.

Central settlement: an established billing system to finance commodity flows

Our two financial institutions, DZB BANK and Aktivbank, are central settlement specialists. The focus of their services is not only on pure demand compensation; the regulatory data also allows trade cooperatives to gain important insights to control their confederation of retailers.

Without central settlement, each retailer would receive a separate invoice for every delivery of goods. Paying the individual invoices alone would create a lot of work. To save time and minimise errors in the billing process, our banks collect invoices from different suppliers for each retailer and forward them as one item. The retailer then pays only the regulating bank.

Central settlement simplifies the accounting processes between a cooperative’s trade and industrial partners, and guarantees punctual payments for all parties – with more security and efficiency. The suppliers are guaranteed to receive payments at fixed dates. In addition, DZB BANK and Aktivbank are 100% liable towards the suppliers in the event of bad debt losses, and handle the entire dunning and debt collection process through to legal prosecution, and thus the costs associated with filing the claim. This makes things simpler for retailers and allows them to spend less time on bookkeeping and accounting.

Guaranteed payments

Central settlement also comprises del credere liability. DZB BANK or Aktivbank act as unlimited guarantors for supplier claims against the affiliated retailer. This assures the contracted supplier that the purchase price receivable to be paid by members of the trade cooperative will be will be paid in full as a first priority, irrespective of their own liquidity and capital position.