Often yes, through factoring or supply chain finance, but the structure must fit the export proceeds rules. Bangladesh Bank requires export proceeds to be repatriated through an authorised dealer bank and reconciled with the export documents. If the overseas buyer pays a foreign factor directly, the exporter still needs the Bangladesh side of the transaction to show that proceeds were realised properly. Many programmes therefore route payment through the exporter's bank in Bangladesh, or involve that bank as a party. We review the proposed flow with the factor, the exporter and its bank before the first invoice is financed.

Factoring is usually supplier-led: the supplier sells or assigns its invoices to a factor, which advances cash and collects from the buyer, with or without recourse to the supplier. Supply chain finance is often used to describe buyer-led programmes, such as reverse factoring, where the buyer approves invoices and a funder pays suppliers early at a discount based on the buyer's credit. In practice the terms are used loosely in the market, so the documents matter more than the label. Each structure allocates credit risk, dilution risk and payment obligations differently, and each raises different Bangladesh legal questions.

First, look at who the funder is, whether invoices are sold outright or financed with recourse, what the supplier warrants about each invoice, and what happens if the buyer disputes goods after payment. Check whether the programme conflicts with existing hypothecation or loan covenants given to the supplier's Bangladesh bank, which often cover all book debts. Confirm where early payment will be received and how it will be matched to export documents for Bangladesh Bank purposes. Finally, review data sharing, fees, termination and governing law terms, which are usually set by the buyer and rarely negotiated.

It can, in some cases. Whether a contractual ban on assignment defeats an assignment, makes it a breach, or has no effect against the funder depends on the governing law of the contract and sometimes on statute in that country. Many overseas buyer contracts with Bangladeshi suppliers are governed by English, US state or EU member state law, which treat these clauses differently. A funder should check the clause and its governing law before purchase and consider obtaining the buyer's consent or acknowledgement. We review the clause and coordinate with foreign counsel where an opinion is needed.

Bangladeshi companies, particularly exporters, frequently grant their working capital banks hypothecation or floating charges over present and future book debts. A later sale or assignment of receivables to a factor may breach those arrangements or leave the factor competing with the bank for the same cash. Before a programme starts, the existing security and loan documents should be checked, charges registered at the Registrar of Joint Stock Companies searched, and a release, consent or intercreditor arrangement agreed where needed. The movable property registry under the 2023 Act adds another search that should be carried out.

It depends on how the business is conducted. A foreign funder purchasing receivables from Bangladeshi exporters on a cross-border basis, through the exporter's bank, may not need a local licence for that activity, but lending or factoring carried on as a business inside Bangladesh can engage banking or finance company regulation. Fees, discounts and other remittances abroad also need foreign exchange and withholding tax analysis. The answer turns on the facts, so we review the proposed operating model and advise on whether a licence, a local partner or a different supply chain finance structure is required.

The accounting, tax and regulatory characterisation can differ. Where a Bangladeshi buyer arranges for a funder to pay its foreign suppliers early while the buyer pays the funder later, the arrangement can resemble deferred payment or trade credit, which is regulated by Bangladesh Bank and may need to fit specific import payment rules. Domestic programmes between Bangladeshi buyers and suppliers raise fewer foreign exchange issues but may still affect covenants and disclosures. We review import-side and domestic programmes with the buyer's finance team and auditors before launch, so the structure is understood by every party.

The factor first needs to confirm that it holds an enforceable right to the receivable and that notice of assignment was given where required. It can then send a formal demand, negotiate or start proceedings. In Bangladesh, claims are usually brought in the civil courts or, for financial institutions, the Artha Rin Adalat, depending on the claimant and the facts; arbitration may apply if the contract provides for it. Mandatory pre-case mediation under the Legal Aid Services (Amendment) Act 2026 may apply to some disputes. We advise on the most effective recovery route for each claim.