Nov 21, 2016 (LBO) - Seylan Bank says it has added Factoring to its portfolio of services offering a wider choice of working capital financing options.
This service is available for any type of business ranging from SMEs, corporate as well as start-ups, the bank said in a statement.
Factoring allows generating cash flow without debt, by trading the trade debtors with the bank at a discount, and managing collection costs by allowing the bank to assist in collections for a nominal fee.
“Seylan Bank is proud to introduce Factoring services to our clientele as another platform to avail services from us. At Seylan Bank, our staff is geared to offer the best service, where funds can be provided to customers at their time of need without the hassle of the customer having to provide additional collateral," Delvin Pereira, the deputy general manager, consumer finance for Seylan Bank, said.
This offers a huge benefit especially to startup businesses with good products and services, and quality debtors but lacking in capital to grow the business, the bank said.
Although factoring has been considered a facility for start-ups and small businesses, it is used by even large corporates due to the fact that it is a conversion of debtors to cash making the balance sheet look clean, Pereira added.
It could be set-up in various forms where the client could use the services of the Bank to collect his debts assigned to the Bank who discounts the Debts, or arrange to collect the debts individually or jointly with the bank in whatever manner that is convenient to the customer, he said.
Seylan Bank's network consists of 166 branches and over 193 ATMs island wide.
The bank has a growing clientele of SME, minor savings, retail, corporate and credit card categories. Seylan also has a significant amount of followers in its social media platform and has been recognized for its social media performance.
