Far East National Bank
licensed for trade factoring
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.