Treasury & Capital Markets
China's e-commerce giants are adopting a unique factoring model
The proliferation of in-house factoring companies forms part of e-commerce companies’ expanding ecosystems
Derrick Hong
23 Feb 2018
WITH technology conglomerates’ growing engagement with small and medium size enterprises ( SMEs ), over the last four years a model of so-called “double factoring” – a type of debtor financing whereby a company sells receivables at a discount to meet current funding needs – has taken shape in China. This has now become a sustainable business model across different industries, including banking and e-commerce.