A Study on Supplier Finance Required in Maintaining Active Working Capital Level of Customers: An Example from IDLC Financing Company in Bangladesh

Naheem Mahtab

Authors

Naheem Mahtab

Keywords:

supplier financing, factoring, supplier loan, customer performance, effective guarantor, active working capital management

Abstract

Factoring is a simple form of Commercial Finance in which a Small Business which can't qualify for more conventional financing sells its accounts receivable (invoices), representing money due from its business/governmental customers for the sale of its goods and services to a "Factor" or Factoring company at a discount from face value so that it does not have to wait the normal 30-90 days for its invoices to be paid. In short, Factoring helps a Small Business Speed Up its Cash Flow, thereby enabling it to more readily pay its current obligations and grow. Some people defined factoring as the purchasing of accounts receivable, in the form of invoices, at a discount from their face value. The term 'Factor' has its origin from the Latin word 'facere' meaning to make or do (to get things done). The dictionary defines a Factor as an agent, particularly a mercantile agent. Factoring has a long and fascinating history, which traces back through several centuries. In the early stages, Factors were itinerant merchants who were entrusted with merchandise belonging to others.

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A Study on Supplier Finance Required in Maintaining Active Working Capital Level of Customers: An Example from IDLC Financing Company in Bangladesh. (2015). Global Journal of Management and Business Research, 14(C6), 13-35. https://journalofbusiness.org/index.php/GJMBR/article/view/100692

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F Samiloglue, K Demirnes (1941) Régions Francophones réels Francophones occasionnels Population Nombre % Nombre % AFRIQUE 30 001 000 4,7 40 617 000 6,3 645 000 000 Afrique du Nord-Est 219 000 0,31 700 000 2 83 400 000 Maghreb 14 455 000 24,7 17 030 000 29 58 400 000 Afrique subsaharienne 13 477 000 3,3 19 745 000 4,8 489 140 000 OCÉAN INDIEN 1 850 000 13,2 2 142 000 15,2 14 060 000 AMÉRIQUE 8 682 000 1,23 565 000 0,5 714 000 000 Amérique du Nord 7 286 000 2,93 2000 000 1,3 247 806 000 Amérique centrale, Caraïbes 1 216 000 0,7 365 000 0,2 176 794 000 Amérique du Sud 180 000 0,06 289 4000 000 ASIE 1 627 000 0,05 810 000 0,03 3 060 000 000 Proche et Moyen-Orient 1 491 000 0,8 800 000 0,4 186 000 000 Extrême-Orient 136 000 0,005 10 000 0,0004 2 874 000 000 EUROPE 63 952 000 8,19 200 000 0,1 789 000 000 Europe de l'Ouest 62 872 000 17,5 5 200 000 1,4 360 000 000 Europe de l'Est et URSS 1 080 000 0,34 000 000 0,9 429 000 000 OCÉANIE 350 000 1,3 33 000 0,1 26 000 000 MONDE 104 612 2 54 225 000 1 5 234 000 000. 3, 219-219.