Receivable Services

Receivable services is the purchase and subsequent discount of invoices raised by a supplier on selected buyers. This can be with or without recourse to the supplier.Standard Charted Bank can help to structure without recourse funding using credit insurance to insure receivables purchased, by allocating internal limits on approved buyers or using bank guarantees issued in the buyer's name.

Factoring facilities can be on a disclosed or undisclosed basis. A disclosed facility is one in which the buyer is advised of the purchase of the invoices by the bank from the seller, whereas the undisclosed facility is where the buyer is not advised. The maximum tenor for factoring is normally 120 days from the invoice date. The maximum funding under factoring must not normally exceed 90% of the total invoice value.

Benefits

• Mitigate the risks of buyer default
• Protection against non payment
• Improve or protect company financial ratios.
• Better cash flow

Bank Requirements

• All funding must be covered by Group Account Managers or bank guarantees
• Must sign Receivable Purchase Agreement
• Must have an approved Factoring facility