Lanka ORIX Leasing Company Ltd (LOLC)’s Working Capital Business Unit (WCBU), saw a growth rate of of 53% in the first six months of the 2010/2011 financial year, which is indicative of the current trend in interest rates creating an impressive demand for credit, the company said this week.
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| Graham Lawrence |
The WCBU of LOLC was earlier known as Lanka ORIX Factors Ltd (LOFAC). The company said WCBU’s involvement in working capital is to assist enterprises to run their day to day businesses through advances against future receivables.
“Once a credit sale takes place, the client discounts his receivables with the factoring company and receives immediate cash. The factoring company will then follow-up with the debtor(s) and collect the dues on the applicable future date. If the clients wishes confidentiality of the dealings, they may collect post dated cheques from the debtors and forward them to the WCBU in settlement of his borrowings, generally considered as Invoice Discounting,” the statement said.
Apart from Factoring and Invoice Discounting, the WCBU also provides structured loans to existing and new customers for business improvement, capital investment or import/purchase of raw materials. Similarly, Purchase Order Financing for existing factoring clients can be arranged to meet requirements of bulk purchases and seasonal orders, it said.
Commenting on the success of the unit, CEO of LOLC’s Working Capital Business Unit, Graham Lawrence said, “WCBU’s services are highly sought after because of its appeal as an alternative financial solution which is both dependable and efficient, and which ensures maximum profitability. This reputation that we have built over the years was due to our long term presence in the country’s financial sector.” |
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