The asset-backed securities program (ABS program) involves selling European and US receivables to a special purpose entity, which obtains refinancing from the capital markets. Its main function is to reduce the external liquidity requirements which result from the seasonal nature of the agricultural machinery business. Customers traditionally order agricultural machines between October and March, with payment due at the end of August once the harvest has been brought in and sold. This creates a need for financing at certain times of the year, whereas liquidity tends to build up towards the end of the financial year due to the relatively low amount of working capital tied up at that time. The ABS programs have been helping CLAAS to effectively manage these liquidity fluctuations since the year 2000.