Receivable Finance

Is Factoring right for you?

Factoring is a modern method of cash flow management, helping to protect our working capital.

Factoring Services can help in the following cases:

• Buyer demands O/A to replace prepayment, sight payment, L/C or D/P
• Buyer demands longer payment terms
• Tight working capital due to rapid business growth
• Lack of trading history with a new buyer
• Worries about delayed payments
• Worries about bad debt
• Seeking greater financial flexibility

HSBC’s Factoring Services team can provide tailor-made solutions based on your unique needs.

If you are selling on open account terms and need financing, credit protection or collection services, check out our Receivable Finance options.

• Receivable Financing
• Credit Protection
• Collection
• Ledger Management
• E-Factoring

Receivables Financing

Advantages of Recievables Financing

• Tailored solutions for businesses trading on open account terms
• ‧ Another way to obtain finance when a buyer no longer issues Documentary Credits
• People to follow up payments on your behalf
• Protects you against buyer default or insolvency
• Effective ledger management

How Receivable Finance works

• You sign an agreement with HSBC.
• You provide goods or services to a customer and invoice them.
• You send the invoice to us.
• You have access to standby funds up to an agreed percentage of the invoice value.
• When and how you use these funds is entirely up to you.
• Either HSBC or an overseas representative under our supervision will collect the sales proceeds from your customer.
• When the invoice is paid, you receive the balance.
• In the case of undisputed receivables where a customer defaults or becomes insolvent, if you have taken out credit protection on the customer with us, we will pay you the outstanding balance up to the value of the agreed credit protection limit.

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Credit Protection

Advantages of Credit Protection

• Protects you against losses arising from buyer default or insolvency
• Peace of mind when trading on open account terms
• Saves you all the time and effort involved in dealing with claims

Other benefits

• Our Credit Protection can cover up to 90%-100% of undisputed receivables
• We will handle all the admin and reporting associated with credit protection and claims

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Collection Services

Advantages of Collection Services

• A convenient, cost-effective alternative to running your own credit control function
• For domestic sales, a dedicated Controller will follow up invoice payments with your buyers directly
• For export sales, we will appoint overseas representatives to contact your buyers

Other benefits

• By outsourcing the responsibility of credit control to HSBC, your business resources and human resources can be utilised more profitably elsewhere
• HSBC is a founding member of the Factors Chain International (FCI), the world’s largest association of factoring and receivable finance service providers wit

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Ledger Management

Advantages of Ledger Management

• Efficient credit control allows you to shorten your working capital cycle
• Puts you in a position to improve business performance

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e-Factoing

Advantages of e-Factoring

• A free online receivables management tool
• Gives you up-to-date information on your ledger with HSBC
• Allows you to create reports to support management activities
• You can also submit invoices electronically

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