Factoring

  • Factoring

Enhancing liquidity to the business by transforming account receivable into cash.

Factoring is the format of short term financing by purchasing of account receivables from the business on post-shipment basis with credit term 7-180 days and having assignment of right to receive proceed from counterparty as collateral.

Factoring can be discounted upfront with UOB at the level of 80-90% of the value of account receivable and the business will receive the remaining amount from UOB once the counterparty has settled the obligation with UOB on due date.