| Factoring of Accounts Receivable is a mode of financing receivables arising out of supply of goods or delivery of services on credit. 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. |
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| Value added services: |
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Sales ledger administration:
The Factor administers and provides detailed reports of the Sales Ledger that are very helpful for the Client/Supplier's management decision making. |
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Follow up and physical collection:
The Factor follows up collection in a structured process and ensures physical collection of payment from Buyers located at different geographical locations. |
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Advisory Services:
Assist the Client/ Supplier by making suggestion about the credit rating of a Buyer and thus enable the Client/ Supplier to fix proper credit limit for each Buyer. |
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Eligibility criteria:
Facility is available to all industries that provides services or deliver products to corporate entities i.e. institutional buyer/ debtor. As a rule of thumb: |
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Your business must sell to a credit worthy debtor/buyer on a regular basis |
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A receivable/ invoice/ bill that can be verified or has an acceptance by the institutional buyer/debtor |
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Having multiple institutional buyers/ debtors is even better |
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Subject to clean CIB report from Bangladesh Bank |
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