MTB joins with Tradewind to offer export factoring solutions

Mutual Trust Bank (MTB) has recently teamed up with German-based factoring company Tradewind GmbH (Tradewind) to offer factoring solutions for Bangladesh exporters.

The alliance will support the Bangladesh export community by providing non-recourse finance facilities that will accelerate payments from international buyers, which would have otherwise been affected on deferred basis.

MTB Managing Director and CEO Syed Mahbubur Rahman and Tradewind Managing Director and CEO Ansgar Huetten signed an "agreement for business collaboration" on July 6.

"We strongly believe this guaranteed financing arrangement will provide our exporters better cash flow management and provide them with a competitive edge for expansion of export business in manifolds," said Rahman.

"Given international trade advances involving increased trade on open credit, recent directives from the central bank of Bangladesh on the allowance of exports on open-account terms, is both timely and befitting," said Huetten.

"Exports conducted under open-account credit terms against payment risk coverage, with the option for early payment arrangements on non-recourse basis, will not only allow Bangladeshi exporters easy access to finance, but will also assist with minimising credit risk."