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Emirates Bank Factoring goes global, now a member of Factors Chain International

Emirates Bank has become the only local bank in the UAE to become an accredited member of Factors Chain International (FCI) and only the second bank in the UAE to join this elite group.

 

FCI is a global association registered in the Netherlands, with an objective to grow international factoring transactions and be guided by the General Rules for International Factoring to the benefit of it's members and ensure uniformity in protection of member's clients. Since 1968, FCI has grown dramatically to 180 members in 54 countries and increasingly become a recognized body to administer Factoring globally. With increasing cross border business conducted on an open account basis, Factoring is a now a global industry with an estimated annual turnover of USD 950 billion to USD 975 billion.

 

In line with Emirates Bank's constant endeavor to offer new products to meet dynamic market demands, Factoring Services were introduced as a simple solution for a assisting a corporate's domestic and international trade. Factoring provides benefits of consistent cash flow, lower administration costs, reduced credit risks and more time for the company to concentrate on their core business activity. Factoring essentially provides businesses with finance against their outstanding invoices/receivables for both their domestic and export sales as soon as the goods are shipped / services are rendered. Emirates Bank can even undertake to collect payment from the buyers and provide upto a 100% protection against bad debts in transactions which meet criteria.

 

Maninder Bhandari, Head - Transaction Banking, Emirates Bank, mentions that "Factoring is relatively a new product in our region with very few providers of this service, although it is an estimated USD 14 billion service in Middle East & Africa. The obvious challenge is to educate the market and spread awareness on the availability of this innovative financial concept. We, at Emirates Bank, are geared and well placed to meet these challenges with the backing of our strong local presence and an expert team of professionals running the factoring business, offering a multitude of services including factoring finance, sales ledgering, payments reconciliation, collections support, bad-debt protection etc."

 

Vijay Vashist, Manager - Factoring Services, Emirates Bank, mentioned that today almost every industry can benefit from Factoring. Assigning domestic or international account receivables to a Factoring Bank is a flexible way of managing trade debts. Money normally owned on short or open terms can be factored. More and more businesses are switching to international factoring as a means of moving away from traditional letter of credit terms to open account trading. With importers now demanding more favourable payment terms, factoring allows exporters to move to open account credit terms for their customers without fear of bad debts or overseas collection problems.

 

Emirates Bank's Factoring department is housed under their Transaction Banking Services and can be reached in Dubai at: Phone: 3974747, extension 175 or on email: vijayv@emiratesbank.ae