Domestic Sales Bill factoring
For sales within India, Steps in Domestic Factoring:
- Customer ( Buyer) places the order with Client (Seller)
- Client (Seller) obtains a prepayment limit from IFCI Factors Limited
- Client (Seller) delivers goods/services to the customer (Buyer).
- Copies of Invoices, along with a Notice to Pay, are submitted to IFCI Factors Limited
- IFCI Factors Limited makes a prepayment advance to the Client
- IFCI Factors Limited follows up on payment with the Customer (Buyer)
- Customer (Buyer) makes payment to IFCI Factors Limited
- IFCI Factors Limited makes the balance payment to the Client (Seller), net of charges.
Multi Service Package
At IFCI Factors Limited , the Domestic Factoring facility comprises of the following:
- Instant Prepayments:
Advances are made to the client based on agreed prepayment percentages on submission of invoices. Balance payment is made on the receipt of payment from the buyer.
- Sales Ledger Administration:
Under a domestic factoring agreement, IFCI Factors Limited manages and operates the Sales Ledger for the Clients, monitoring the invoices issued and payments received. IFCI Factors Limited also provides you with valuable MIS reports to enable you to take better informed credit and pricing decisions.
- Collection of Payments:
IFCI Factors Limited follows up on payment with the Buyers (Seller’s Customer ) and makes the balance payment to its Client (Seller).
- Advisory Services:
IFCI Factors Limited also offers advisory services to its clients such as credit assessment for domestic buyers.