Domestic Factoring

Domestic factoring is a purchase of claiming rights to collect payment from receivables of merchandisers whose business counterparts (purchasers) are domestic entities. Customers are mostly small and medium-size enterprises whose products are traded domestically. The amount of receivables is incurred from such trading in the ordinary course of business. Supporting documents, e.g. delivery note, invoices and bill of lading, of receivables are required in applying for the assignment of collection right from such trade receivables in order for the enterprises to obtain cash advance to be used for their business operation. These documents will then be used by the Subsidiary for receivable collection when it becomes due. Previously, the Subsidiary emphasized on providing factoring credit services to small and medium-size enterprises in various industries such as electronics, automobile, packaging, chemicals and plastics.