Factoring “finance without recourse”

Factoring

-“Non-Recourse Finance”

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.

Lorem ipsum dolor amet consectetur dipiscing elito aouctor mauris aliquet sodale.

Learn more about our various services

Factoring Benefits

  • 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.

Factoring Arrangement

In order to improve efficiency, we suggest exporters to provide below basic information during the negotiation of sales contract. OTFC may quote our price and arrange potential factor

  • Importers Country
  • Importers Name
  • Commodity
  • Value
  • Shipment Date
  • Tenor

The exporter may receive discounted proceeds in advance (after deducting commission and other relevant charges) after presentation of stipulated documents, having no liability regarding the importers’ possible default on payment.

Get Your Free Consultation Now!

Contact Us

We're not around right now. But you can send us an email and we'll get back to you, asap.

Not readable? Change text.

Start typing and press Enter to search