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Far East National Bank licensed for trade factoring

Source: 14/Feb/2005 Saigon Times Daily page 3
Feb 15, 2005, 08:00


The Far East National Bank (FENB) has received central bank approval to launch international trade factoring, becoming the second foreign bank in the country to provide this financial service behind Germany's Deutsche Bank AG.

The service allows companies to sell their outstanding receivables or invoices to FENB in order to secure immediate working capital.

FENB will purchase receivables from its clients by giving them a payment upfront. This advanced payment is usually 70-90% of the total value of the receivables.

After charging a small fee, the remaining balance is released upon full receipt of payments for all the receivables or invoices.

With a factoring deal, companies can save much time collecting money from slow paying international importers while they can also offer better terms to their large customers.

FENB, the third US bank in Vietnam, now has a branch in HCM City.