Atiur sees factoring as ideal financial solution for SMEs

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FE Report
Bangladesh Bank Governor Dr. Atiur Rahman said Saturday that factoring could be an ideal financing solution for the country's small and medium enterprises (SMEs) due to the flexibility allowed under the scheme.
"This is a collateral free financing transaction and therefore best suited for the small and medium entrepreneurs," he said at a workshop on 'Practices of Domestic Factoring in Bangladesh' held in the city Saturday.
"Moreover, a relationship based on trust is maintained in this sort of financial transaction" he added.
Bangladesh Leasing and Finance Companies Association (BLFCA) and International Finance Corporation (IFC) jointly organized the workshop.
"Nevertheless, small scale financial transaction are taking place through factoring in Bangladesh, this scheme could have immense potential in the country," BB Governor said.
Later, he also distributed certificates among the participants of the workshop.
A total of 55 participants from various financial institutions in the country participated in the daylong workshop focusing on various aspects of factoring scheme.
Earlier, Chairman of BLFCA Mafizuddin Sarker in his speech hailed the recent government move to decrease the bank interest rate and the corporate tax rate for the non bank financial institutions.
Managing Director of United Leasing Company Limited Syed Ehsan Quadir and Managing Director of Union Capital Limited Saifuddin M Naser also spoke on the occasion.