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Byline: Krissana Parnsoonthorn
Oct. 2--United Factoring (1993) Co plans to seek a listing on the Market for Alternative Investment by the middle of next year to mobilise funds to lower its lending costs.
The factoring company would increase its registered capital by 50-60 million baht, from the current 120 million baht, said managing director Pharkphien Saguanpiyapan.
Adkinson Securities was yesterday appointed as financial adviser to study the listing proposal.
"We see a lot of opportunities to provide factoring services for small and medium-sized enterprises that can't obtain loans from banks," Mr Pharkphien said.
Factoring aims to help companies manage their short-term liquidity positions. They can take receivables, such as trade credits or invoices, and sell them to factoring companies in return for immediate cash.
The factoring firms will then collect the funds themselves from trade counterparties when the original contracts become due.