Factoring of Accounts Receivable is a mode of financing against the Account Receivables generated due to the sale of goods or services on credit. This is a short term financing facility on revolving basis. It enables the suppliers/service providers to realize the maximum portion of the payment soon after the delivery is made to the buyer. It is a service designed to improve cash flow position by turning credit sales into ready cash.
The facility involves three parties: Factor, LankaBangla Finance PLC. and bill payer.