Factoring provides working capital and so is a liquidity solution for your business. With this facility, a corporate client can sell your accounts receivable to the Bank at discount after delivery of goods and services and issuance of invoices with 10 to 120-day credit terms to your customers. Factoring is conducted based on the Bank’s purchase of trade documents (including invoices, shipping documents, tax invoices, bill issues, and the like) and the borrower’s assignment of sales proceeds to the Bank. The Bank will advance 70%-90% of invoice proceeds to you within 1 day after receipt of the trade documents, whereby the remaining 10%-30% of the sales proceed will be credited to your account once the buyer under your trade documents pay for the goods and services to the Bank.
