Factoring/Accounts Receivable Purchase
At DBS Bank, we are committed to meet your business needs. DBS Bank is the leading player in the local international ARP scene. In our commitment to remain in the forefront, we are constantly upgrading our products and services to better meet our client’s needs.
DBS is the first Asian bank with strong regional ARP network across Singapore, Hong Kong, Taiwan, India and China.
Our Accounts Receivable Purchase (ARP) facility is designed to improve your cash flow. Under our ARP facility, we are able to provide you the following benefits :
What you stand to gain from our ARP facility
- Working Capital Facility - Instant Cash
You have instant access to your earnings instead of having to wait the usual 30, 60, 90, 120 days or longer for your customers’ payment. You are assured of a steady cash flow.
Unlike traditional banking facilities, no collateral is required for notified ARP.
- Penetrate and Expand in Overseas Market
Credit Protection against bad debts so that you can offer competitive open account terms to your overseas buyers.
- Credit Protection Facility – Up to 100% Bad Debt Protection
You enjoy up to 100% protection against bad debts on all approved invoices. If your debtor cannot pay and provided the debt is not disputed, we will pay you the outstanding balance up to the credit limit agreed.
DBS Bank is a member of Factors Chain International (FCI). Being a member of the world's largest international factoring network consisting of more than 250 member organisations and covering over 66 countries worldwide, DBS Bank offers tremendous opportunities for exporters to export on open account terms with confidence.
- Improve your Return on Assets (ROA)
Achieve a higher ROA when you get DBS to purchase your receivables on a non-recourse basis. Under the Financial Accounting Standards Board (FASB) No. 140 and Financial Reporting Standards (FRS) No. 39, companies can de-recognise their assets if the assets are sold on non-recourse basis.
- Collection & Receivable Management Facility
The awesome task of debt collection is now shouldered by us. This will free your resources for customer sales and services. In addition, you will receive assistance in management control which provides you with weekly and monthly debtors’ payment and management reports.
No Collateral Required. No Bad Debt worries. No Letters of Credit needed.
Corporate Terminal Scheme
Corporate Terminal Scheme (CTS) is an online platform which provides you with real-time updates on your facilities. With CTS, you can gain access to the following information:
- Ageing analysis of debtors
- Amount of advance available
- Customer address list
- Customer particulars
- Outstanding invoices
- Debtors’ payments
- Transaction details
IDEAL AR
DBS IDEAL™, our corporate internet banking platform, includes an Account Receivables (AR) interface which allows you to submit invoices and credit notes electronically to DBS for processing.
With DBS IDEAL ™, it is not necessary to fill up the schedule of offer manually as invoice details can be transmitted electronically from your accounts receivable system to our system via DBS IDEAL ™.
Advances of funds can be made available to you earlier since invoices will be uploaded into our system as soon as you transmit them before the daily cut-off time. This helps to reduce processing time and enables you to receive your advances promptly.
Our ARP Financing Terms
|
Domestic |
Export |
| Advance Percentage |
Up to 90% |
Up to 90% |
| Credit Coverage |
Up to 90% |
Up to 100% |
| Discount Charges |
From 1% plus DBS Enterprise Financing Rate |
From 1% plus DBS Enterprise Financing Rate |
| Service Charges |
From 0.5% of invoice value |
From 0.75% of invoice value |
* Rate subject to change from time to time.
Frequently Asked Questions