IFCI Factors

What

Definition

  • Factoring is a financial transaction whereby a business sells its accounts receivables (i.e. invoices) to a factor for immediate money to finance its day to day operations.
  • In factoring, the emphasis is on the quality / collectability of the receivables than merely the firm’s credit worthiness.
  • It is a tripartite agreement between three parties: the seller of goods, the buyer of goods (debtor), and the factor.
  • Factoring thus not only helps you in expanding your business, but also provides you with an efficient collection mechanism and protection against bad debts.

Types

  • Domestic Factoring: For open account credit sales of goods and services made within India. Services offered primarily comprise of funding, sales ledger administration and collections.
  • International Factoring: For open account credit sales of goods and services to overseas buyers. Services offered primarily comprise of funding, credit protection, sales ledger administration and collections.

Enables you to

  • Instantly turn your receivables to cash
  • Avail credit protection for your receivables
  • Take well informed credit decisions
  • Outsource your sales ledger administration