What is Factoring? | India Factoring


What is Factoring?

Factoring is a tailor made package of services designed to improve your cash flow and secure your debts thereby offering you a competitive edge in your markets, both domestic and abroad.

What does Factoring offer?

  • Prepayment of Invoices (up to 80% of invoice value available immediately)
  • Professional collection services in India and in more than 30 countries
  • Protection against bad debts (up to 100%)

Who can use it?

All companies offering credit terms up to 150 days to corporate buyers can make use of factoring services.

How does Factoring benefit you?

  • Improves your cash flow – immediate cash upon presentation of invoices
  • We collect on your behalf – you need not spend time on chasing overdue debts
  • Avoid languages and time zone issues with your foreign debtors – we use correspondent network to collect debts
  • Avoid losses due to bad debts – we credit cover 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, Collection and Credit Protection

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
  • No counter-trade

How much will it cost you?

The pricing for factoring services has three major components:

  • Fee to set up the factoring package
  • Charge applied to the invoice value for the services rendered other than prepayment
  • Discounting charge for prepayment of the invoice

How can you apply?

Please request a meeting by contacting us at the address mentioned in the Contact Us section.

Alternatively send us an email.

Factoring vs Bank Finance

Factoring vs Bank Finance