FACTORING


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.

 

ADVANTAGES

  • 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.