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| Sunday, 02 March 2003 |
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Business |  |
| News Business Features Editorial
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Assisting Bangladeshi companies with factoring Sudarshan Senaratne, Managing Director Lanka ORIX Factors Ltd. (LOFAC) was invited by the South Asia Enterprise Development Facility (SEDF) recently to assist the Industrial Development Leasing Corporation of Bangladesh (IDLC) with its diagnostics, strategy paper and implementation plan for building its factoring capabilities. The SEDF is a multi-donor-funded initiative which supports the establishment and growth of private and small and medium enterprises (SMEs) in Bangladesh, Bhutan, Nepal and North East India. It is managed by the International Finance Corporation (IFC), the private sector investment arm of the World Bank. One of its major objectives is to increase the access to finance for SMEs. Under this program, SEDF has signed a memorandum of understanding to provide technical assistance to IDLC. The SEDF and IFC have identified LOFAC as a company that is capable of providing technical assistance to IDLC and other companies in the region. Last year, Senaratne was also invited by Dun and Bradstreet India, with which LOFAC has a strategic alliance, to conduct a workshop on export factoring for Export Credit Guarantee Corporation of India. LOFAC, a subsidiary of Lanka ORIX Leasing Company, pioneered factoring in Sri Lanka and the SAARC region in 1991. In 1996, it introduced international factoring to Lankan exporters. Factoring enables a business to raise funds against receivables. In a factoring transaction, a business assigns its receivables to a factor. Thereafter the factor manages the receivables while providing funds upfront for the business. Factoring companies usually have high competencies in managing sales ledgers and thereby are able to add greater value to a business. |
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