You and your Thai Wife of 20 years.

[simon43]

I have just launched a new online company that is operating in the same sector of business as two previous (successful) ventures that I started over the past 10 years. That is, operating a premium SMS (text messaging) content and billing platform. My previous ventures only offered services in the UK, whereas this new venture is approved to offer these services in the USA, UK and Australia.

One requirement to allow the company to grow more quickly is the provision of invoice discounting or factoring. This is because the payment cycle for mobile networks is rather slow, typically 60-90 days. Most of my sales come from resellers and they always like to receive speedy payment.

For my 2 previous ventures, I was physically located in the UK, and was able to obtain factoring from UK companies who offered this type of service. For my new venture, I am physically based in Thailand, using a UK company, and providing my services primarily in the USA! That makes obtaining a factoring service rather difficult because 'mainstream' factoring companies often do not understand my type of business, and their eyes start to glaze over when I explain the geographical locations that are involved!

So, I'm wondering if it's possible to find a private factoring service in Thailand. I'm not looking for a loanshark - the interest rate must work ok in my P/L.

I would be looking to 'sell' invoices totalling about 5 million baht per month, (starting at say 2 million/mo and then ramping up). The US company to whom these invoices are raised is the 'gateway' provider for the mobile networks, and they have a first class credit rating.

Any suggestions are gratefully received. The new venture doesn't have a problem if no factoring service is available. It just means that my resellers must accept the 60-90 day wait for payment, which will mean fewer resellers and hence a slower initial growth for my venture.

Simon

Edited February 25, 2010 by simon43

[Theyreallrubbish]

Look at the company at the bottom of the page. Leader in factoring and about to go public, so should be OK

http://www.set.or.th/en/company/ipo/upcoming_ipo_set.html

Edited February 25, 2010 by Theyreallrubbish

[simon43]

Thanks for that link. I will contact them, but I suspect that they will have a requirement that I have a Thai registered company, accounts, 2-3 years+ track record etc. My business is 'online', doing no business in Thailand etc. So that's why I probably need someone who is prepared to think 'out of the box'.

Nevertheless, thanks for the link!

Simon

[Chaimai]

Thanks for that link. I will contact them, but I suspect that they will have a requirement that I have a Thai registered company, accounts, 2-3 years+ track record etc. My business is 'online', doing no business in Thailand etc. So that's why I probably need someone who is prepared to think 'out of the box'.

Nevertheless, thanks for the link!

Simon

Would the UK factors not just treat it as export sales ? If, as a UK based company, you are invoicing in Sterling you could be OK if the factor is satisfied that they can get title to the debt and are happy with the underlying covenant on the credit risk, etc, etc.

PM me if you would like a call from a couple of UK contacts.