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Lanka Orix Factors Limited (LOFAC) |
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Lanka Orix Factors
Ltd., [LOFAC] incorporated in 1991, was the first factoring company
setup in Sri Lanka. It was the first to introduce factoring, a totally
new approach to financing and funding the growth of business. LOFAC
remains the clear market leader with more than 80% of market share.
In 1996, LOFAC joined factors chain international and became the first
ever Sri Lankan Company to do so. This helped LOFAC to establish relationships
with member companies in 40 countries. The Company has flexible and
market-oriented programs to cater for client demands. It makes a positive
contribution towards customer’s cash flow by providing export
finance advance, 100% credit protection insurance, and sales ledger
administration to reduce non-productive overheads.
The Company help its customers to achieve competitive advantage in
international trade finance services through a global network of first-class
factoring companies, modern and effective communication systems (which
enable exporters/importers to conduct their business in a cost efficient
way), reliable legal frame work to protect exporters and importers,
standard procedures focused on universal quality training programs
and word wide promotion, and promotes international factoring as the
preferred method of trade finance.
How does factoring work ?
LANKA ORIX FACTORS LTD provides financial support to expand your business
by providing 100% credit protection which reduces customers' risk
on debts, cash advances which finance customer growth and expansion
credit information on clients' perspective buyers help them to negotiate
with debtors. It also helps to increase the company’s productivity
and solve shortages of manpower. Availability of funds on receipts
directly geared to sales. Increase of sales will help to achieve your
targets as expected.
Selling more competitively overseas
One of the greatest advantages of international factoring is the fact
that it allows both exporters and importers to trade on favourable
terms.
LOFAC Services to Exporters
As a member of FCI (Factors Chain International) LOFAC, can offer
tree type of service to exporters that will give complete security,
ensure administration is simpler and make a positive contribution
towards cash flow:
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Export credit protection establishes
the credit worthiness of existing and prospective customers
and provides 100% credit protection. |
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Sales ledger administration reduces
non-productive overheads and does not waste valuable management
time |
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Export finance advances an agreed value of invoices
once they have been raised. The balance, excluding the factor’s
charges, is paid when the invoice is settled in full. |
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| The advantages for exporters
are: |
They can expand
sales abroad by offering competitive conditions and terms of payment.
They can offer
open account terms by invoicing the buyer and granting deferred payment
terms, usually 30-90 days.
They are fully
covered against credit losses.
They avoid
the delays often encountered when arranging letters of credit.
Speedy collection
and remittances improves cash flow.
Administration
costs are reduced.
They have access
to a flexible source of working capital to help increase export sales.
Factors Chain International (FCI) services for buyers;
A LETTER OF CREDIT is the most internationally accepted method of
guaranteeing payment but it places a financial and administrative
burden on importers.
THE ALTERNATIVE is for FCI members to guarantee payment to the exporter
through an arrangement with a local factor. No letter of credit is
necessary. All that is required is a credit limit to be established
on the importer’s business. When invoices are due for payment,
the importer pays the FCI member who sends the funds on to the corresponding
local factor.
The advantages to buyers
Ability to
buy on open account terms.
Do not need
to open letters of credit.
Ability to
expand their purchasing power without using existing lines of credit.
Ability to
purchase goods without incurring delays.
Easier to generate
new sources of supply.
For more information contact:
Mr Darshana Ranathunga
100/1-2/1, Sri Jayawardenapura Mawatha, Rajagiriya, Sri Lanka.
Tel: 94-1-873273-82
Fax: 94-1-865611
Email: lofac@sri.lanka.net
Website: www.lofac.com |
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