Factoring Service
Factoring is a service of providing short term financing to clients by way of
discounting the clients’ bill receivables or invoices. We may require our
clients to assign the right of receiving payment from their customers to us,
and we will collect the payment directly from the clients’ customers at the
respective payment due date.
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Factoring Procedure
 The client invoices its customer after delivery of goods and services, and obtain proper
acknowledgement from the customer.
We will purchase the client’s bill receivables after verifying such documentation. The normal
purchase amount or advance amount is 80% of the invoice.
At the due date, we will collect the payment directly from the customers and return the fund to
the clients for the portion in access of the advance amount.
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Service fee
Interest calculated based on the period of cash advancement.
Handling fee calculated based on invoice amount.
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Benefits to the Clients
Be able to obtain working capital to increase liquidity.
Require no collateral and the credit limit can be increased in
line with the sales volume.
Increase the clients’ bargaining power to their raw material
suppliers as payment can be made faster.
Reduce administrative work in account receivable collection
and management. |
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