Lanka ORIX Leasing Company Ltd. (LOLC), the pioneers of factoring in Sri Lanka, saw its Working Capital Business Unit (WCBU) demonstrate a striking 53% portfolio growth in the first six months of the 2010/2011 financial year, indicative of the current interest rates trend, creating an impressive demand for credit.
LOLC’s WCBU, reflected on its journey begun in 1992, by becoming Sri Lanka’s first factoring company registered under the Lanka ORIX Factors Ltd (LOFAC)name, was committed to providing factoring solutions to a growing customer market interested in Factoring and Invoice Discounting services.
LOFAC since diversified to offer total working capital solutions and innovative and personalized products and services specializing in Structured Working Capital Loans, Purchase Order Financing and Cheque Discounting.
LOFAC was later rebranded as LOLC WCBU, when it merged with the LOLC Group in 2009.
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 client wishes confidentiality about his dealings, he may collect post dated cheques from his debtors and forward them to WCBU in settlement of his borrowings, generally considered as Invoice Discounting.
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 bulk purchases and seasonal orders requirements.
Commenting on this significant achievement, LOLC WCBU CEO Graham Lawrence said, “WCBU’s services are sought after because of its appeal as an alternative financial solution, both dependable and efficient, and which ensures maximum profitability. “
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