Do you have below concerns when you us Open Accounts (OA) to settle export business with foreign importers?

• Working capital pressure
• Unknown/Uncertainty to the importers’ risk
• Account Receivable Management
• Pursuing delayed payments

Factoring, a trade finance product by which Account Receivables generated from current or future sales contracts are sold to a Factor, who offers service in trade finance, sales ledger account management, account receivables collection, credit risk control, and bad debt management.

Benefits to exporters

• Offer an Open Account payment option to existing and newly acquired importers in order to expand market share, increasing revenue and profit.
• Upto 80%-95% of the account receivables are guaranteed by discounting without recourse, transferring importers’ default risk to factor.

• Save management costs in credit investigation/assessment, ledger management and bad debt management, eliminate steps in lengthy process under documentary transactions.
• Lower debt/asset ratio by selling account receivables to a factor, improving balance sheet.
• Protect against FX risk, turning deferred FX earnings to sight ones, allowing early settlement.
• Advance export tax refund and save financial cost.