Two-Factor Export Factoring

Introduction

Two-factor Export Factoring is an arrangement whereby a seller assigns his existing or future accounts receivable to Bank of China U.S.A. (the Export Factor), and then to the Import Factor usually located in the country of the buyers. Export Factoring contains comprehensive scope of services, containing finance, receivables ledger management by Bank of China, as well as services including collection of receivables, credit risk undertaking and protection against bad debts by the Import Factor through the Two-Factor arrangement.

KEY FEATURES

Short-term liquidity

Provides short term liquidity and faster payment to the supplier through factoring on the receivables arising from cross-border transactions

Undertake credit risk

Undertakes the credit risk of buyer to facilitate the business cooperation especially with new buyers located in other countries

Optimize management

Comprehensive services to assist sellers optimize management on cross-border transactions.