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A Partner to factor.

The Commercial Bank of Dubai (CBD) has announced today that it has entered a partnership with Coface Emirates Services Ltd. Together this powerful union will provide factoring services to both commercial and corperate customers.

The terms of agreement between the two companies state that  Coface Emirates Services will provide the Factoring Services to CBD thereby enabling the bank to offer a range of factoring services to their customers.
As he signed the agreement, Faisal Galadari said: “We are pleased to launch CBD Factoring Services in partnership with Coface Emirates Services. This will enable us to provide best in class asset based receivable financing services to our corporate and commercial clients. Debtor monitoring will be entrusted to Coface Emirates Services.”

According to David Venediger, “We at Coface are excited to partner with Commercial Bank of Dubai. Our Factoring Services model provides an innovative partnership to connect established banks with Coface’s back-office expertise in factoring. We will leverage our factoring experience in countries such as the USA, China, Australia, the UK, Italy, Germany, Denmark and Spain, among others. Our Factoring Services Partnership business model has also proved successful with Coface West Africa that was launched recently.”

Factoring as we know is very different to bank lending. The way it works and is successful is based on the money tied up in invoices. The company informs the Factoring lender of its invoices and how much it would like to have released, the invoices are sent out to clients and the company can choose whether they want to carry on chasing payments of the invoices or if they would like the Factoring lender to do it on their behalf.

Factoring is simple, its very quick and funds can be raised within 24 hours, it’s also a low cost way of gaining capital compared to a business loan from the bank.

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