Citigroup Vietnam Launches New Product

Citigroup Vietnam introduced a new product, Accounts Receivable Finance Program (ARFP), at a seminar last Friday.

Speaking at the seminar, attended by over 60 foreign and local companies, Charly Madan, Citigroup country officer in Vietnam, said with the country's integration into the world economy, ARFP could become one of the most effective instruments in a market that relied heavily on collateral.

"ARFP is an effective financial instrument with many advantages, especially in an integrating economy where demand for working capital, and collection and risk management services are increasing," he said.

How ARFP works
After making a sale, a seller will issue an invoice requesting the buyer to make payment for the goods on a certain date. The supplier will then sell the invoice to a bank for a certain amount and the bank will collect the debt from the buyer when it falls due.

Finance not only helped meet enterprises' demand for capital and increase their liquidity, but also minimized risks associated with receivables, he added.

"This trade finance solution has been widely used in the Asia-Pacific. It benefits both large corporations and small, and medium enterprises, who currently trade on open account basis and would like to facilitate their supply chain both globally and domestically," Madan said.

(Source: VNA)
Story from Thanh Nien News
Published: 17 October, 2005, 13:10:11 (GMT+7)
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