Accounts Receivable are the amount of money owed to a company for goods or services that have been delivered but have not been paid for by the customers.

Accounts receivable financing (purchase)/ factoring is a type of arrangement where businesses, such as SMEs, receive financing capital that is related to a certain portion of their accounts receivable. Agreements made between the bank and the client are usually in the form of an asset sale or loan.

Recourse: If your customers do not pay you after you have delivered the goods/services in good order, we will seek repayment from you if you have obtained financing for the invoices.

Non-recourse: If your customers do not pay you after you have delivered the goods/services in good order, we will not seek repayment from you if you have obtained financing for the invoices. If you have not obtained financing, we will pay you.
 

When using a normal trade facility, SMEs receive financing based on the company’s financials. With an accounts receivable financing (purchase)/ factoring solution, the quality of the receivables is also assessed.

We can support your sales all over the world, depending on the credit standing of your buyer. Provide us with their details and we’ll assess accordingly.

In the event of buyer insolvency, we will pay you as soon as possible upon receiving insolvency evidence from you. If the buyer does not pay after a predetermined time following the invoice due date, the waiting period ranges from 90 days to 180 days in most cases.

Once your Accounts Receivable Purchase facility is approved, you will usually need to provide the invoice and proof of delivery.

Please refer to this link: Overdue / Default interest rate

If you have any questions or need to discuss the result of your loan application, please contact our "SME Credit Approval Review Hotline" at 2290 8050 or email to [email protected]