In order to help our customers reduce their operational costs and increase efficiency in a group, we have created another product that can be used to serve a company group, where, for example, there is a Chinese company with an offshore entity who will be our direct customer. When a Chinese company needs working capital for its operations, it may apply for a loan facility from CMB, (any branch in China if necessary). However, the repayment of the loan facility is not made directly by the company who applied for the loan, but from the offshore Factoring that is involved in the company' s transactions.

Take the situation where a Chinese company, as an exporter, sells its goods via its offshore entity who will then sell them to an overseas buyer (the importer) on an open account. At this point, the offshore entity can apply to the Offshore Banking Department of CMB for a Factoring facility. If the Factoring works, the target account will be credited, which will be repaid directly to domestic branch of CMB for the repayment of the loan that was granted at the beginning of the transaction.

This product of the offshore factoring benefit you by integrating and controlling the cashflow under every step of exporting operation within CMB, with the services of credit investigation, credit approval, assumption of credit risk, accounts receivable management, and collection of matured accounts.