Mutual Trust Bank Ltd. (MTB), in association with DS –Concept factoring GmbH, a German trade finance institution, recently facilitated factoring i.e. advance against export receivables upon assignment of proceeds of export bills of deferred payment term. MTB Managing Director & CEO Anis A. Khan and country manager of DS-Concept factoring GmbH, Alexander Pinkas inaugurated the first ever such transaction, executed for one of the RMG exporter clients of MTB, at a simple ceremony held at the Corporate Head Office of the bank. Additional Managing Director of MTB, Md. Ahsan-uz Zaman, Head of MTB International Trade services, Md. Bakhteyer Hossain, Mr. Rene Pastor, Senior Executive Vice President & Head of Legal, DS Concept Factoring Germany and other senior officials of both the companies attended the program
The arrangement made between DS-Concept factoring GmbH & MTB will substantially benefit both the client & the bank in terms of better management of both the organization's future cash flows. DS-Concept also covers credit insurance coverage against potential payment default under export contract which is gradually substituting the conventional Letter of Credit covered export. Apart from export financing, MTB & DS-Concept factoring GmbH are expecting to reach an agreement for arrangement for financing of imports through discounting import bills under the deferred payment terms, which is gaining popularity in Bangladesh.