Siam General Factoring Co.,Ltd. (SGF), established onAugust 7, 1985 with
Bt20-million registered capital, is the first company to bring factoring to Thailand in the last five years.In September, 1987 SGF increased its registered capital to Bt40 million then it was listed on the Securities Exchange of Thailand on February 10, 1988.
     SGF, at present, operates two kinds of service-one is "Factoring" which refers to invoice credit provision, and the other is "Floor Plan", credit provision for car dealers.

Factoring: A convenient source of funds

     Factoring is a short-term financial system, which enables any business to increase circulated capital to avoid sudden halts in product manufacturing caused by extending credit to customers.With the factoring service, businessmen can avoid problems, complicated procedures and the security guarantees which are always required by banking systems or other financial institutes. In factoring, a client only hands a notice and invoices to the factor (SGF) for assessment and approval and makes a credit agreement. Within a week, he can exchange his invoices for cash to increase his business cash flow. Usually, the factoring credit term is between seven and 180 days. 

 Factoring service of SGF   

     At present, SGF offers its clients "Invoice Discounting",a type of factoring service which comes in three forms:
1. Recourse without notices
- SGF purchases invoices from the client without handing notices to client's customers and retains the right to claim payment from the client in the even that the customers refuse to pay the debts.
2. Recourse with notices
- SGF purchases invoices from the client and hands notices to client's customers and still retains the right to claim payment from the client in the event that the customers refuse to pay the debts.
3. Without recourse with notice
- SGF purchases invoices from the client and hands notices to client's customers. The client is not responsible for the payment if the customers refuse to pay the debts.

How factoring works
     When the client applies for credit approval, SGF analyzes and assesses all documents concerned with trade between the client and its customers, then sets up a credit limit agreement. After the goods are delivered and invoices have been made, the client sends a notice and a copy of invoices to SGF for assessment of the total invoice value. SGF then pays the client for the invoices. When collection is due, SGF will collect payment. If payment is late by more than 15 days, the client has to repurchase the invoices.