In recent years factoring has experienced phenomenal growth and has become an important source of financing-especially short term working capital-for small and medium-size enterprises (SMEs) and corporations. Factoring as a form account receivables financing has been a widely acceptable mode of asset-backed financing world-over. Unfortunately in Bangladesh, the factoring business is yet to be introduced. Both banks and corporate houses face challenges in case of open account trade. Open account trade means that payment is received many weeks or even months after delivery. In this report we...