There are ten factoring companies in Hong Kong; they had a total turnover of Ђ3.25bn in 2003, according to Factors Chain International. Among the most significant factoring companies are HSBC (UK), UPS Capital Global Trade Finance (Hong Kong - a local arm of US-based shipping company United Parcel Service) and East Asia Heller (Hong Kong).
Although still a relatively unfamiliar technique to many Hong Kong companies, an increasing number of firms are beginning to consider factoring. The most likely candidates for the service are small, fast-growing companies that might be outgrowing their credit facilities with banks or that might need muscle with customers.
Factoring is not cheap, but it does alleviate the hassle of collecting receivables.
