CORPORATE FINANCIAL

SERVICES

There are very few who can provide the full spectrum of corporate finance advice to middle market businesses both public and private – LankaBangla Finance Limited team can.
Our Corporate and Institutional Service team is one of the leading idea providers of right funding idea for your current situation in Bangladesh. As a leading financial firm, our Emerging and Commercial Business Unit team help you to access 80% of your invoice in advance as cash. Our team has been carefully built to provide the right mix of experience and creativity in negotiation, clarity of thought in project management, a worldwide network to identify buyers and investors and the technical support that only a large accounting business can provide. Allied to these teams we have specialist Project and Structured Finance Unit teams that both provide essential support to our growing clients.
When the going gets tough, the tough stay put and never flinches. We don’t either. Through the credit crunch, depressed commodity prices, and global economic turmoil, we never left the side of the people who’ve made LankaBangla Finance Limited an economic powerhouse. We continue to custom build solutions to help our clients do what they do best—lead. In-depth knowledge and experience in LankaBangla Finance Limited is in part what makes us different and gives us the strength to stay the course with our clients. We’re proud to offer a wide range of custom-built capital, cash management, and financial market solutions in order to help our clients succeed.
Find out more about us and the clients we've cared for or call one of our service heads to find out more. We look forward to working with you on your deal.
The value we deliver is demonstrated through our unique relationship model, industry expertise, and local market advantage.

FACTORING & COMMERCIAL

Business

In business, you face challenges everyday − cash flow doesn’t need to be one of them. LankaBangla Finance offers working capital solutions to give your business a positive cash flow boost − freeing up working capital, giving you the financial freedom and flexibility to grow your business.

Through the products/services, our intention is to be an active partner in the management of your company's supply/delivery chain. LankaBangla Finance Limited has made the process straightforward and simple. LankaBangla Finance Limited is happy to work with your company whether your need is as small or large. Our program helps you manage your cash flow so that you can focus on managing your business.

At LankaBangla Finance Limited Finance Limited, our ability to be the comprehensive provider of Trade Solutions makes us a leading player in the Trade & Factoring market of Bangladesh. We aspire to partner in your business to run it without any disruption and share the joy of success while Growing Together.

Classification of Services

  • Factoring
    Finance

    Factoring of Accounts Receivable is a mode of financing against the Account Receivables

  • Distributor
    Financing

    Distributor Finance is a mode of financing in which the financer makes payment to the Manufacturer

  • Reverse
    Factoring

    Unlike traditional factoring, where a supplier wants to finance his/her receivables.

FACTORING
Finance

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
  • Client, the Supplier/Manufacturer/Seller
  • Debtor/Customer, the Buyer
Eligibility
  • Enlisted Suppliers/service providers of large local or multinational corporations
  • Sales on credit
  • Minimum 1 year of continuous business operation
  • Minimum 1 year experience of key person(s) of the company in the same line of business.
  • Potential business prospects
  • Organizations with successful business track records
Major Advantages
  • No time wasted on comprehensive loan applications
  • Better cash flow and quicker access to working capital
  • Better liquidity through on-time cash injections (advances from the factor)
  • Better financial standing, creditworthiness, and solvency
  • Higher sales volume - the company can offer its customers better credit terms and can accept more business
  • Better terms for new customers (important for exporting companies)
  • Business growth funded without new debt - no monthly payments or balloon payments
  • No sale of equity (no new shareholders to raise funds)
  • No material insurance
  • A stronger balance sheet, enhancing borrowing potential, as factoring is off-balance sheet and does not need to be reported to prospective lending institutions, boosting the efficiency ratios (e.g. return on assets etc.)
  • Easier to finance seasonal production
  • Even a start-up or young company can obtain financing quickly

DISTRIBUTOR
Financing

Distributor Finance is a mode of financing in which the financer makes payment to the Manufacturer/Principal of goods on behalf of its distributors and the distributors after a certain credit term pays the money back to the financer. It is a revolving short term financing facility that enables the distributors to take advantage of cash purchase and source higher amount of goods that helps them to do business in bigger volume and thus earn higher profit. It requires involvement of 3 parties, namely:

  • Distributor
  • Manufacturer/Principals
  • Financer, i.e., LankaBangla Finance

The Distributor Finance Program is a unique financing program provided by LankaBangla Finance. Under this program, LankaBangla Finance provides working capital finance to wholesale Distributors of various products including electrical goods, pump sets, paints, cement, steel, tiles, etc. of reputed companies such as Pran, Unilever, BAT, ACI, Square, Abul Khair, Akij, MGH, Transcom, PHP, City Group, Meghna, Rangs, Oil companies, etc. to strengthen their working capital base to increase sales of Distributors and correspondingly the sales of the Manufacturers.

Major Advantages
  • Credit facility for the Distributor/Agent
  • The payment period is linked to the payment obligation to the Principal.
  • No time wasted on comprehensive loan applications
  • Better financial standing, creditworthiness, and solvency
  • Higher sales volume - the company can fulfill market demand
  • No material insurance
  • Easier to finance seasonal demand
  • Allows quicker, smaller, ‘just-in-time' purchases/lifting products.
Eligibility
  • Enlisted Distributor of large local or multinational corporations
  • Advance payment for lifting products
  • Minimum 3 years of continuous business operation
  • Minimum 2 years experience of key person(s) of the company in the same line of business.
  • Potential business prospects
  • Organizations with successful business track records
  • Organizations with sound repayment history

Reverse
Factoring

Unlike traditional factoring, where a supplier wants to finance his/her receivables, Reverse Factoring is a financing solution initiated by the ordering party (buyer) in order to help his/her suppliers to finance their receivables more easily and at a lower interest rate than what they would normally be offered.

The Reverse Factoring method is similar to the Factoring (Factoring in normal mode or traditional Factoring) as it involves three actors:

  • The ordering party
  • The supplier
  • The Factor (the finance company or bank)

Reverse Factoring is a financial solution in which the invoices of suppliers duly accepted by the client (buyer) are factored. In the case of Reverse Factoring, the client is the buyer and the factoring agreement is between the buyer and the factor. In Reverse Factoring since funds are released to and in the name of the suppliers after the buyer (client) duly accepts the invoices, the performance risks of the suppliers are obviated and the only risk is the creditworthiness of the buyer.

Major Advantages
  • No time wasted on comprehensive loan applications
  • Reverse factoring could provide a financial lifeline
  • The small supplier can get payment for invoices in a quicker time.
  • Reverse factoring would be less expensive that traditional factoring arrangements
  • Better cash flow and quicker access to working capital
  • Better financial standing, creditworthiness, and solvency
  • No material insurance
  • Easier to finance seasonal production
Eligibility
  • Renowned / large local corporations
  • Purchase on credit
  • Minimum 3 years of continuous business operation
  • Minimum 2 years experience of key person(s) of the company in the same line of business.
  • Potential business prospects
  • Organizations with successful business track records
  • Organizations with sound repayment history

Fees & Charges

  • Documentation fee

    A nominal fee for documentation of the application process

  • Service charge

    LankaBangla Finance Limited applies the most competitive service charge in return for costs incurred in maintaining your receivables accounts, realizing collections and similar services.

  • Interest

    Applied in return for the financing provided by LankaBangla Finance Limited.