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The portfolio has about $2.3 billion in receivables, the bank said.
But for the largely unregulated business of securitizing health care receivables, the damage may already have been done.
The much lower than expected anticipated quarterly results include approximately $81 million in writedowns and provisions for receivables the company no longer expects to collect.
Excluding a gain from the pending sale of its credit card receivables, the profit was 81 cents a share, 4 cents more than what Wall Street analysts had expected, according to Thomson Reuters I/B/E/S.
In terms of receivables, the company will integrate with CRM providers to allow sales orders to be turned into invoicing through the Bill.com platform.
Does it change the amount of cash, the amount of receivables, the inventory, amount of properties, or an expense?
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The total purchase price on the credit-card deal will be equal to the size of the receivables on the transaction's closing date, which is expected within 90 days.
Jason and Panther would pay a fee for each card issued, or, if they sold the receivables to the bank, take a cut of the profits for collecting from the debtors.
We'll collect the receivables, do the invoicing and hold all the inventory.
This will move the unearned income from the balance sheet, since it can now be counted as a payment on a specific invoice number found in the open accounts payable and considered part of the receivables for the period.
Target, based in Minneapolis, said the sale price was equal to the gross value of the outstanding receivables at the time of closing.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com