Receivables Finance (Factoring) / Global

What is factoring?
Factoring is a financial instrument based on the purchase of a customer’s (the seller) accounts receivable by the factor. The main feature of factoring is the immediate receipt of sales revenue from goods/services supplied by the seller while the buyer enjoys the benefits of deferred payment. Factoring is a comprehensive service package. Besides financing, it ensures against the risk of payment default and provides analytical and collection services.

Factoring summary:

You supply goods/services and the Bank pays you +/-80% of the cost of goods/services supplied;
The remaining 20% is paid upon contract maturity as agreed between seller and buyer.

Factoring users-
Factoring is mainly targeted by producers and wholesale traders that:
Supply goods/services under deferred payment terms on a regular basis.
Apply the non-cash settlement method
Have a shortage in working capital
Operate in highly competitive markets
Aim on increase in sales volume

Advantages:

A. For creditors (sellers)-

Sharp increase in sales volume
Higher working capital turnover; receipt of sales revenues immediately upon delivery
Collateral-free, revolving financing facility
Accelerated cash turnover
Improved balance structure
Attracting new buyers
Simple and efficient financing framework

B. For debtors (buyers)-

Room for deferred payment
Increase in purchase volume thanks to convenient payment means
Efficient utilization of working capital thanks to deferred payment on goods/services purchased
Improved market position.

Example - Farmer/Seller will harvest durian fruit in about 3 months' time, Buyer/Distributor in Hong Kong signed long term contract supply with local Grocery Chains to supply durian and will have a supply of fruit/product receivables in 45 days. Seller and Buyer agree with 2GF as an intermediary to Factoring.
Buyer/Distributor deposit 20% with 2GF as PoF with signed supply contract proof on day 1, Farmer/Seller releases shipment on harvest time. Farmer/Seller collects 80% at the time of cargo arrival in HK and the remainder of 20% within 30 days of release in HK. Buyer/Distributor pays back to 2GF on receivables 45th day as settled payments.
Long term dynamics and ease of transactions, the 2GF Traders Team will complete stages with Buyer and Seller.
There are no finance/interest charges on this financial setting, standard Trade commissions of 2.35B/2.35S plus FA yearly fees will apply only.

For additional info send in a complete request with full contact details only, our local BDM will respond within 24 hours.

Disclosure: If you don't have funds to retain our firm, please DO NOT contact us.
We would like to encourage you not to pursue or engage in any business with our Group in the event or possession by you/group/entity of lack and fundamental disclosure or fraudulent statements, breach of patents/trademarks or any misrepresentations, falsely obtained monetary or financial instruments via money laundering or illegal transfers, illegal custodial funds from IMF listed or US Department of State sanctioned entities, persons or current under sanction countries governments.