Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount. A business will sometimes factor its receivable assets to meet its present and immediate cash needs. This revolving short term financing facility enables the suppliers/ service providers to realize the maximum portion of the payment soon after the delivery is made to the buyer.
WHOM DO WE FINANCE?
- Your business must sell to a credit worthy debtor/buyer on a regular basis.
- Subject to clean CIB report from Bangladesh Bank.
- A receivable/ invoice/ bill that can be verified or has an acceptance by the institutional buyer/debtor.
- Having multiple institutional buyers/ debtors is even better.
- We provide loan facility up to certain limits.
- Channel financing refrain you from further credit to pay off suppliers, as funds are directed to Channel partners.
- Suppliers or Customers will receive payments right after the delivery of goods or services. Therefore funds are no longer tied up in receivables.
- Steady source of working capital finance increases purchasing power of your channel partners, resulting higher sales and profitability.
- Simplicity of documentation and approval procedures.