Emirates Bank which introduced Factoring Services a year ago has now launched insurance backed factoring to provide credit protection & collection services to customers. Factoring is a service that covers financing, collection and payment protection of account receivables. Factoring and Invoice discounting business is on a growth curve and as a member of Factors Chain international, Emirates bank is well positioned to provide both Domestic and International (Export and Import) Factoring.
The continued development of new financial solution is fast replacing traditional methods of funding in many countries. Although Factoring, as a financial instrument, has long been in use throughout the world, UAE has only recently been acquainted with it. Factoring provides benefits of consistent cash flow, lower administration costs, reduced credit risks and more time for the company to concentrate on core business activity. Rise in domestic demand coupled with the fact that nearly all the top trading partners of Dubai are mature Factoring countries augurs well for growth in this business
Abdul Wahed Al Fahim, General Manager, Corporate Banking, Emirates Bank commented: Factoring is relatively a new product in our region with very few providers of this service. The obvious challenges are to educate the market and spread awareness on the availability of this innovative financial product. We are geared to meet these challenges and our recent insurance tie-up with COFACE & National General Insurance will help us offer without recourse factoring to clients in the UAE.
Samir Sahu, Head - Transaction Banking said : We have invested in a technology platform geared to offer Sales Ledgering, Payments reconciliation & Ageing analysis which are useful tools for customers availing factoring. Emirates Bank is committed to service this growing need through leading edge solutions and our team of experts is well equipped to structure factoring arrangements which meets specific needs of businesses.
Vijay Vashist, Head of Factoring Services in Emirates Bank elaborated that trade on open account terms is growing in the Middle East and hence corporate are looking at solutions for financing, collections and payment risk protection. Today almost every industry can profit from Factoring and assigning account receivables to a Factoring Bank is a flexible way of managing trade receivables. Our Factoring service provides a simple solution regardless of the fact whether the user is a small organization or a major corporation.
-Ends-
© Press Release 2006
