Domestic factor is a comprehensive financial service that the China Merchants Bank has developed for credit sales, particularly on-account sales (O/A) in domestic trades. The seller assigns to the China Merchants Bank its accounts receivable incurred from the sales contract it signs with the buyer; the China Merchants Bank, for its part, provides all service items pertaining to trade financing, sales subsidiary account management, urging for payment of account receivable, credit risk control and bad debt guaranty.

Types of Services
1.  Open financial factor with recourse;
2.  Hidden financial factor without recourse;
3.  Open financial factor without recourse;
4.  Non-financial factor.

Service Advantages

For the Seller:
Instantly convert undue account receivable into cash, and improve financial structure;
Capable of offering more competitive terms of long-time settlement, exploring market and promoting sales;
Risk on buyer’s credit converted into accounts receivable of the bank, a guaranty to collection;
The bank, shoulders credibility investigation, account affairs management and collection of accounts receivable. It is a reduction in management cost.

For the Buyer:
Possibility to avail of more favorite long-time settlement offers, accelerate cash turnover, and create greater profit;
Less cost for establishment of banker’s acceptance bills or L/C, etc.