Company registration number 12439031 (England and Wales)
SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD
COMPANY INFORMATION
Directors
L Felisberto
R Junior
Company number
12439031
Registered office
6th Floor
Manfield House
1 Southampton Street
London
WC2R 0LR
Auditor
Alliotts LLP
3 London Square
Cross Lanes
Guildford
GU1 1UJ
SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 22
SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Business Review

Founded in 2017, SellersFi operates as a data-driven alternative lending platform, primarily serving e-commerce merchants, especially those on Amazon.com. Our core business involves extending loans and revenue advances through a fully integrated application process, supported by proprietary risk assessment tools. This model allows us to cater effectively to the funding needs of e-commerce businesses, offering funding terms that range from three months to four years.

Our primary objective is to deliver comprehensive financial solutions tailored to the unique needs of e-commerce entrepreneurs. We aim to:

- Expand our product offerings to include services traditionally available only through banks.

- Foster innovation in the fintech space to provide sellers with seamless access to financing.

- Maintain a customer-centric approach that prioritizes best-in-class service and support.

Performance Review

In 2023, SellersFi achieved significant milestones, including:

Principal risks and uncertainties

A word on the Company’s Approach to Risk Taxonomy

SellersFi operates within the Fintech industry’s ecosystem which typically is comprised of Fintech start-ups (e.g., digital lending, payments, and others), technology developers, customers seeking financial services, traditional financial institutions, and regulatory authorities. Hence, the Company opted to implement a Fintech Enterprise Risk Management Framework (the “ERM Framework”) reflective of its operational model and its level of maturity and – as such – establishing a practicable approach to risk management. The ERM Framework sets forth seven categories of Risk Areas: Capital Markets, Customer Management, Regulation, Technology Integration, Security and Privacy, Risk Management Practices, and Fintech Innovative Solutions.

The below section presents the key risk factors that have been identified, including the company’s approach to mitigating those risks.

SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

Risk

Impact on company

Mitigation

Credit Risk

Occurrence of a major Credit Risk impact is possible, driven by higher-than-expected default rates and concentration risk. This represents a medium level of inherent risk. The poor quality of controls presently mitigating this risk further magnifies the situation and signifies a medium level of residual risk for the enterprise.

The Credit Department has taken concrete steps to improve underwriting, loan portfolio management and reporting. Credit and Collections policies are actively being updated and maintained as part of the Company’s mitigation efforts.

Legal Risk

Although occurrence is rare, there is a minor potential impact being addressed by poor controls. This is related to the fact that policies, procedures, and trainings related to Product Development are still under development.

The General Compliance Team, in tandem with the Legal Team and other stakeholders, has been assisting in the development of the necessary policies, procedures, and trainings.

Financial Risk

Occurrence is unlikely but there is a minor potential impact being addressed by poor controls. The most pressing vulnerabilities arise from underdevelopment of policies, procedures, reports, and trainings related to Marketing and Advertising, and Financial Management.

The areas of Finance and Marketing are focused on putting in place the necessary frameworks. This is expected to reduce the risk of financial reporting errors and targeted CAC and customer churn.

Reputational Risk

Occurrence is unlikely, however there are poor controls mitigating against a potential major impact. This is again primarily related to the fact that policies, procedures, and trainings are all currently under development.

The Company is diligent in monitoring customer feedback and engaged in addressing any complaints and/or reviews. The Company has developed Complaints Handling Policies and Trainings as part of its efforts when mitigating reputational risk.

People Risk

Occurrence of a moderate impact is possible, however there are poor controls attempting to mitigate exposures primarily related to inadequate staffing and no training. The lack of adequate staffing causes a domino effect, amplifying the risk exposure related to Compliance Risk.

The Company is committed to strengthening and establishing its training program, for the benefit of all employees and departments.

Compliance Risk

Occurrence of a major impact is unlikely, however there are poor controls attempting to mitigate the large regulatory exposures. The lack of staffing exacerbates the situation by forcing a reactionary, rather than preventative, approach to mitigation. There is little to no time left over for adequate monitoring/oversight.

The Company has streamlined its practices by standardizing its procedures and increasing operational efficiencies to ensure its well positioned for growth without compromising the quality of its compliance processes.

SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

Future developments

2024 profitability - The Company estimates operational profitability by YE 2024 due to the following:

Financial instruments

Financial instruments at fair value measurements: Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 820 established a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs. Fair value measurements are determined based on the assumptions that market participants would use in pricing an asset or liability.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various methods including market, income and cost approaches. Based on these approaches, the Company often utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable inputs. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the observability of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

Conclusion

This Strategic Report provides a comprehensive overview of our business and its strategic direction as of December 31, 2023. We are optimistic about our future prospects and remain dedicated to delivering value to our stakeholders through innovation, customer focus, and strategic growth.

SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

On behalf of the board

R Junior
Director
21 November 2024
SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company was that of credit granting to online businesses.

Results and dividends

The results for the year are set out on page 11.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

L Felisberto
R Junior
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
On behalf of the board
R Junior
Director
21 November 2024
SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD
- 7 -
Opinion

We have audited the financial statements of Sellersfunding International Portfolio Ltd (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty relating to going concern

In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosure made in note 1.2 to the financial statements concerning the company's ability to continue as a going concern.

 

As described in note 1.2 to the financial statements, the group, to which the company is a member, is reliant on a third party credit facility that is due for total repayment in November 2025. The group's forecasts indicate that significant performance improvements and/or additional investment in the group is required to provide the company with the resources to continue its strategy and to ensure it is able to continue to operate.

 

Management have informed us that they are in active negotiations to extend/expand the existing facility but are not able to access further facilities at this stage. Discussions also remain on going over further capital investment within the group as set out within note 1.2.

 

Due to the nature and timing of these negotiations there is no corroborating evidence to support these on going discussions or ability to measure whether they will be successful.

 

Whilst the successful delivery of investment and performance improvements cannot be certain, the Director is confident these will be achieved.

 

The ability to secure the required additional investment and to deliver on the forecasts themselves are conditions that indicate the existence of material uncertainties, which may cast significant doubt about the Company’s ability to continue as a going concern.

SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD (CONTINUED)
- 8 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD (CONTINUED)
- 9 -
Extent to which the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

Audit response to risks identified

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD (CONTINUED)
- 10 -
Christopher Mantel
Senior Statutory Auditor
For and on behalf of Alliotts LLP
21 November 2024
Chartered Accountants
Statutory Auditor
3 London Square
Cross Lanes
Guildford
GU1 1UJ
SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£
£
Turnover
3
21,125,960
16,419,108
Cost of sales
(10,589,729)
(9,262,513)
Gross profit
10,536,231
7,156,595
Administrative expenses
(17,368,487)
(12,517,844)
Operating loss
4
(6,832,256)
(5,361,249)
Interest receivable and similar income
6
27
70
Interest payable and similar expenses
7
-
0
(2,295)
Loss before taxation
(6,832,229)
(5,363,474)
Tax on loss
8
-
0
-
0
Loss for the financial year
(6,832,229)
(5,363,474)
Other comprehensive income
Currency translation (loss)/gain taken to retained earnings
(2,466,692)
336,442
Total comprehensive income for the year
(9,298,921)
(5,027,032)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Current assets
Debtors
9
121,710,573
130,452,580
Cash at bank and in hand
3,970,829
9,826,671
125,681,402
140,279,251
Creditors: amounts falling due within one year
10
(2,482,269)
(2,496,277)
Net current assets
123,199,133
137,782,974
Creditors: amounts falling due after more than one year
11
(128,948,947)
(138,538,222)
Net liabilities
(5,749,814)
(755,248)
Capital and reserves
Called up share capital
13
100
100
Equity reserve
13,749,004
9,444,649
Profit and loss reserves
(19,498,918)
(10,199,997)
Total equity
(5,749,814)
(755,248)

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 21 November 2024 and are signed on its behalf by:
R Junior
Director
Company registration number 12439031 (England and Wales)
SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Equity reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
100
8,173,138
(5,172,965)
3,000,273
Year ended 31 December 2022:
Loss
-
-
(5,363,474)
(5,363,474)
Other comprehensive income:
Currency translation differences
-
-
336,442
336,442
Total comprehensive income
-
-
(5,027,032)
(5,027,032)
Other contributions
-
1,271,511
-
1,271,511
Balance at 31 December 2022
100
9,444,649
(10,199,997)
(755,248)
Year ended 31 December 2023:
Loss
-
-
(6,832,229)
(6,832,229)
Other comprehensive income:
Currency translation differences
-
-
(2,466,692)
(2,466,692)
Total comprehensive income
-
-
(9,298,921)
(9,298,921)
Other contributions
-
4,304,355
-
4,304,355
Balance at 31 December 2023
100
13,749,004
(19,498,918)
(5,749,814)
SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
16
1,861,564
(59,964,517)
Interest paid
-
0
(2,295)
Net cash inflow/(outflow) from operating activities
1,861,564
(59,966,812)
Investing activities
Interest received
27
70
Net cash generated from investing activities
27
70
Financing activities
Repayment of borrowings
(5,284,920)
64,013,529
Net cash (used in)/generated from financing activities
(5,284,920)
64,013,529
Net (decrease)/increase in cash and cash equivalents
(3,423,329)
4,046,787
Cash and cash equivalents at beginning of year
9,826,671
5,423,236
Effect of foreign exchange rates
(2,432,513)
356,648
Cash and cash equivalents at end of year
3,970,829
9,826,671
SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

Sellersfunding International Portfolio Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 6th Floor, Manfield House, 1 Southampton Street, London, WC2R 0LR.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are presented in sterling, translated from the functional currency, the united states dollar. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

In determining the appropriate basis of preparation of the financial statements, the directors are required to consider whether the Company can continue in operational existence for the foreseeable future, being a minimum period of 12 months from the date of approval of the financial statements.

 

Credit facilities are provided to the group by a third party (Fasanara Securitisation S.A), this credit facility enables the continuation of the company business model.

 

This credit facility is due for total repayment in November 2025. Management is in active negotiations to extend/expand the facility but are not able to access further facilities at this stage.

 

During 2023 additional credit facilities were secured and further private equity was invested in the parent company by other parties to meet the needs of the company.

 

The company continues to be the module of the Group which administers the operations of the group. The company relies on the other modules of the Group to continue to trade.

 

The directors have considered the Group's financial performance since the balance sheet date and have prepared cash flow forecasts to September 2025, underlining these projects is an improved performance which indicates that the Group will see a net income of $139,288 for the twelve months to September 2025.

 

As of November 2024, the Group had commitments for new capital of $16.5m, which is expected to close by the end of December 2024.

 

Forecasts inherently involve several judgments and assumptions as to existing and future service performance. Management is confident that the financing received subsequent to the year end and in the process of being raised will provide the Group and therefore the company with sufficient resources to continue to operate.

 

The requirement for additional investment and the ability to deliver on the forecasts themselves are conditions that indicate the existence of material uncertainties, which may cast significant doubt about the Company’s ability to continue as a going concern.

 

Nevertheless, after considering the uncertainties described above, the directors have a reasonable expectation that the Company can continue in operational existence for the foreseeable future. It is on this basis that the directors consider it appropriate to prepare the financial statements on a going concern basis. The financial statements do not include the adjustments that would result if the Company were unable to continue as a going concern.

SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion where this can be estimated reliably.

 

Revenue from the provision of financial services, in the form of loan note offerings, is recognised on a daily basis at the interest rates set for the loan note term lapsed.

1.4
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.5
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.6
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.7
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Impairment of debtors

Determining whether trade debtors require specific impairment is conducted on a monthly basis, the company assesses the original booked value against the fair value. The fair value is estimated by establishing and reviewing the data available, such as:

 

 

Where the fair value is assessed to be less than the originally established loan value, an impairment is introduced to align with the fair value.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Provision of credit facilities
21,125,960
16,419,108
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
3,505,213
1,756,135
United States
17,620,747
14,662,973
21,125,960
16,419,108
2023
2022
£
£
Other revenue
Interest income
27
70
SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
4
Operating loss
2023
2022
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(34,179)
20,206
Fees payable to the company's auditor for the audit of the company's financial statements
17,250
16,000
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
2
2
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
27
70
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
27
70
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
-
0
2,295
8
Taxation
SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
(Continued)
- 20 -

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Loss before taxation
(6,832,229)
(5,363,474)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(1,298,124)
(1,019,060)
Unutilised tax losses carried forward
1,298,124
1,019,060
Taxation charge for the year
-
-
9
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
4,388,429
301,113
Other debtors
196,348
287,514
Loans and advances
117,093,072
129,863,953
Prepayments and accrued income
32,724
-
0
121,710,573
130,452,580
10
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
642,558
700,184
Amounts owed to group undertakings
1,837,722
1,796,093
Accruals and deferred income
1,989
-
0
2,482,269
2,496,277
11
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Other borrowings
12
128,948,947
138,538,222
SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
12
Loans and overdrafts
2023
2022
£
£
Other loans
128,948,947
138,538,222
Payable after one year
128,948,947
138,538,222

Fasanara Securitisation S.A., a Luxembourg public limited liability company, makes available to SellersFunding International Portfolio Limited (SFIP) financing at 95% of the value of qualifying loan notes made by SFIP. Any payment defaults on loan notes provided by SFIP are absorbed by Fasanara Securitisation S.A. at a value of 95%.

 

The financing provided by Fasanara Securitisation S.A. is secured by a fixed charge over the assets of SFIP, and by a floating charge over the assets of SFIP which are not otherwise effectively subject to a fixed charge.

 

The amount owed to Fasanara Securitisation S.A. at the year ended 31 December 2023 was £113,458,834 (Class A) and £15,463,112 (Class B) (2022: £103,222,268 (Class A) and £35,315,954 (Class B)). Repayment is not due before 2025.

 

Interest charged on the financing provided by Fasanara Securitisation S.A. is dependent on the risk assessment of loan notes provided by SFIP; 6.5%-7% interest being charged on 'Class A' loan notes and 12% interest being charged on 'Class B' loan notes.

 

The relating interest charge included for the year ended 31 December 2023 was £1,355,760 (2022: £9,262,513).

13
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
14
Related party transactions
2023
2022
Amounts due to related parties
£
£
Parent company SellersFunding Corporation
290,608
714,647
Group companies
1,547,114
1,149,323

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Parent company SellersFunding Corporation
4,159,742
100,843
Group companies
228,686
268,146
SELLERSFUNDING INTERNATIONAL PORTFOLIO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
15
Ultimate controlling party

SellersFunding Corporation is the ultimate controlling party of the company which owns 100% of its share capital and is also the largest group of undertakings for which group accounts are drawn up. Its registered address is: 1290 Weston Road, Ste 306 Weston, FL 33326.

16
Cash generated from/(absorbed by) operations
2023
2022
£
£
Loss for the year after tax
(6,832,229)
(5,363,474)
Adjustments for:
Finance costs
-
0
2,295
Investment income
(27)
(70)
Foreign exchange gains on cash equivalents
(34,179)
(20,206)
Movements in working capital:
Decrease/(increase) in debtors
8,742,007
(55,483,474)
(Decrease)/increase in creditors
(14,008)
900,412
Cash generated from/(absorbed by) operations
1,861,564
(59,964,517)
17
Analysis of changes in net debt
1 January 2023
Cash flows
Exchange rate movements
31 December 2023
£
£
£
£
Cash at bank and in hand
9,826,671
(3,423,329)
(2,432,513)
3,970,829
Borrowings excluding overdrafts
(138,538,222)
9,589,275
-
(128,948,947)
(128,711,551)
6,165,946
(2,432,513)
(124,978,118)
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