Factoring/Accounts Receivable Purchase

DBS Bank - provides working capital, credit protection, collection & receivable management facilities for domestic and export receivable, import credit as well as domestic, export and import factoring.

DBS Bank is a member of Factors Chain International. Being a member of the world's largest international factoring network consisting of more than 230 member organisations and covering over 60 countries worldwide, DBS Bank offers tremendous opportunities for exporters to export on open account terms with confidence.

DBS Bank is presently playing the leading role in the local international factoring scene. In our commitment to remain in the forefront, we are constantly upgrading our products and services to better meet our client's needs.

A healthy cash flow is crucial to the performance and profitability of every business concern. It is not uncommon to hear of business downfalls caused by an unchecked cash flow problem.

Despite the efforts made by businessmen to ensure smooth cash flows, it is very likely that funds are being tied up in trade debts. If you share this frustration, we at DBS, are pleased to introduce our solution to this age long problem - Accounts Receivable Purchase (ARP) Facilities.

Our Accounts Receivable Purchase facility is designed to improve your cash flow. Basically, it works by turning your invoices into cash. The conversion is almost immediate. Besides, we offer a host of other benefits and services that will be valuable to your business.

Benefits

• Instant Cash - Working Capital Facility
  You have instant access to your earnings instead of having to wait the usual 30,60,90 and 120 days or longer to be paid by your customers. As you can draw up to an agreed percentage of the invoice value upfront, you can therefore be reasonably assured of a steady cash flow.

  You will find working capital a flexible form of financing as advances are made based on sales generated to customers acceptable to us.

  You can obtain financing in foreign currency. This will enable you to hedge against any loss in foreign currency.




• Up to 100% Bad Debts Credit Protection - Credit Protection Facility
  You enjoy up to 100% protection against bad debts on all approved invoices. Even if your customers become insolvent, you will still be able to recover your money.

  We provide credit protection for both domestic and export receivable.

  Our worldwide network covers over 40 countries and is expanding into many more.

  Click here on the member listing.

Collection & Receivable Management Facility

We now shoulder the awesome task of debt collection. This will enable you to concentrate on building your business by attending to more important management functions such as marketing, production and planning. In addition, you will receive assistance in management control through our on-line computerised system that provides you with weekly and monthly sales ledgering and management reports. Through our Corporate Terminal Scheme, you can link your personal computer to our system and have access to your sales ledger information. You can also submit invoices via Internet through IDEAL Enterprise. We are the first bank in Singapore to offer such facility via internet!

Import Credit

You can purchase on open account terms without letters of credit. You save money by skipping the associated charges. And you save time by avoiding the usual delays in documentary credit arising from the negotiation of documents.

Plus, your banking facilities are released for other uses. The collateral you use for opening letter of credit now become available for other credit facilities.

In short, your purchasing power is increased!

As long as your supplier enters into an agreement with our correspondent in their home country, all related charges are borne by your supplier. So you get to increase your purchasing power by importing on open account terms without paying a cent.

Improving your Rate of Return on Assets (ROA)

Many large corporations today are looking at ways to improve their ROA. We are able to assist you to achieve a higher ROA by designing an arrangement whereby we purchase your book debts and provide advance payment of up to 100% of its value.

This form of balance sheet management is widely practised by multi-national corporations in Europe and USA, and is fast becoming popular in Singapore as well. Under the Financial Accounting Standards Board (FASB) N. 140, companies can de-recognise their assets if the assets are sold on non-recourse basis.

Our ARP Financing Terms

Guidebook on Account Receivable Purchase Facility