Factoring Finance

Product
Summary

Factoring of Accounts Receivable is a mode of financing against the Account Receivables generated due to the sale of goods or services on credit. This is a short term financing facility on revolving basis. It enables the suppliers/service providers to realize the maximum portion of the payment soon after the delivery is made to the buyer. It is a service designed to improve cash flow position by turning credit sales into ready cash.

The facility involves three parties: Factor, LankaBangla Finance PLC. and bill payer.

Major
Advantages

• No time wasted on comprehensive loan applications
• Better cash flow and quicker access to working capital
• Better liquidity through on-time cash injections (advances from the factor)
• Better financial standing, creditworthiness, and solvency
• Higher sales volume - the company can offer its customers better credit terms and can accept more business
• Better terms for new customers (important for exporting companies)
• Business growth funded without new debt - no monthly payments or balloon payments
• No sale of equity (no new shareholders to raise funds)
• No material insurance
• A stronger balance sheet, enhancing borrowing potential, as factoring is off balance sheet and does not need to be reported to prospective lending institutions, boosting the efficiency ratios (e.g. return on assets etc.)
• Easier to finance seasonal production
• Even a start-up or young company can obtain financing quickly

What are the
Eligibilities

• Enlisted Suppliers/service providers of large local or multinational corporations
• Sales on credit
• Minimum 1 year of continuous business operation
• Minimum 1 year experience of key person(s) of the company in the same line of business.
• Potential business prospects
• Organizations with successful business track records

Fees &
Charges

• Documentation fee: A nominal fee for documentation of the application process
• Service charge :LankaBangla Finance Limited applies the most competitive service charge rates in return for costs incurred in maintaining your receivables accounts, realizing collections and similar services.
• Interest :Applied in return for the financing provided by LankaBangla Finance PLC.

Apply
Online