Factoring
To you, as a provider of goods or services, this is a process where India Factoring pre-pays against the credit invoices that you regularly raise on your established clients. In settlement of this obligation, your clients pay India Factoring on the respective due dates directly.
  • How does Factoring benefit you?
  • Improves Cash Flow – immediate cash upon presentation of invoices
  • We collect on your behalf – you need not spend on chasing overdue debts
  • Avoid language and time zone issues with your overseas debtors – we use correspondent network to collect debts.
  • Avoid losses due to bad debts – we credit protect your export buyers
  • Fully unsecured – No securities to be provided
  • Improve your Balance Sheet ratios – Off Balance Sheet solutions
  • Increase your commercial competitiveness
  • Focus on what you do best (your own business) and let us help you in what we do best – Finance, collections and credit protection… Factoring, in a nutshell!
  • When does Factoring Apply?
  • Sales on open account credit terms
  • Continuous business relationship with your buyers
  • Clear title of receivables
  • Assignable receivables
  • Clean / Clear performance of the seller, i.e. you
  • No counter-trade
  • How much will it cost you?
The pricing for factoring service has three major components:
  • Fee to set up the factoring package
  • Charge applied to the invoice value for the services rendered other than pre-payment
  • Discounting charge for pre-payment of the invoice
Our Solutions
  • Domestic Factoring

Domestic Factoring provides short term working capital and cash flow solution for your sales within India. Besides prepaying your invoices, we also provide Sales Ledger Management and Collections services for your receivables

You assign your receivables arising from your domestic sales to India Factoring against the following services:

  • We early pay against your receivables up to 80%
  • Provide solutions on entire receivables management activities like sales ledger maintenance
  • Follow up and collections from your buyers

Process flow of Domestic Factoring

  • Export Factoring

Export Factoring provides short term working capital and cash flow solutions for your sales outside India. We credit cover buyers in over 80 countries through our correspondent network. Besides prepaying your invoices, we also provide sales ledger management, collections services and credit protection for your receivables.

You assign your receivables arising from your export sales to India Factoring against the following services:

  • We early pay against your receivables up to 90%
  • Provide solutions on entire receivables management activities like sales ledger maintenance
  • Follow up and collections from your buyers
  • Follow up and collections from your buyers
  • Credit protection against buyer defaults

Process flow of Domestic Factoring

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  • Factoring