Client transfers its account receivables, from goods or services provided by itself, to a factor (ORIX Taiwan Corporation). The professional account receivables management provides more comprehensive account management and financing services. The factor relieves equipment provider from account receivables collection pressure and assumes buyer’s default risks.

Advantages of Factoring

Turn receivables of goods and services sold into cash to be more competitive      in business development. For financing, turning receivables into cash increases flexible and convenient      mobility of capital. Professional account receivables management service improves payment      collection effectiveness and properly eliminates risks of direct collection from      sellers. Combine the conditions of account receivables purchase management to      transfer credit risks of selling to reduce operating risks. By making use of Factoring, the customer can reduce management costs      such as credit checking, accounts managing, collection and credit risks.

Factoring Structure