Factoring

International Factoring
We create a commercial framework for the projects in such a way that it attracts the interest of-quality bidders and investors.
Domestic Factoring
Channel Financing
Import Factoring
Letter of Credit (L/C) Discounting both Export and Domestic

International factoring

Comprehensive receivable management service encompassing finance, credit protection, collection and sales ledger management for exports on open account terms
Advance up-to 95% of the invoice value can be provided
Credit Default Risk Cover
L/Cs from foreign buyers are not required
The facility is without recourse on the client

Domestic Factoring

Invoices are raised on open account sales of goods and assigned to the factor for financing, collection and sales ledger administration
Advance of up-to 90% of the invoice value/ bill value can be provided · Collection of receivables
Collection of receivables
Maintenance of accounts relating to accounts receivables (A/R)

Channel Factoring

Channel Financing enables clients to discount their receivables on account of supplies made to their dealers within pre-defined limits. Payment is received from the dealer on the due date
Channel finance ensures immediate realization of sales proceeds for clients, making it practically a cash sale. On the other hand, the dealer gets credit for a pre decided tenor sanctioned by us, enabling smooth liquidity management
Advance of up-to 95% of the invoice value/ bill value can be provided
Collection of receivables
Maintenance of accounts relating to accounts receivables

Import Factoring

Import factoring is a financial service which enables clients to purchase goods from overseas suppliers on short term credit of up-to 180 days without the need for a L/C
L/C can also be opened in favor of Foreign Supplier in selective cases
The client will receive the credit without incurring any additional cost. The primary obligation would be to make payment to the factor on the due date
As Import Factoring covers imports of up-to 180 days, import of raw materials can be covered

LC Discounting (Export/Domestic)

L/Cs of leading banks can be discounted by the client. This facility is offered in combination with the basic factoring facility
Advance of up-to 100% of L/C value
Maintenance of accounts relating to accounts receivable

Reverse Factoring/Purchase Bill Discounting

Reverse factoring is the discounting of suppliers' bills in respect of the client's regular purchases from them
Only regular suppliers of the client, having a relationship of minimum 6 months, are considered
Advance of up-to 100% of the Invoice value/Bill value can be provided to the supplier
Credit is given of around 120 days

Interest Cost

Rate of Interest for foreign currency financing will be around LIBOR + (2.0% - 2.50% p.a.) on the basis of the financials of the company
Rate of interest of loan (in INR) will be approx. 9.00% to 11.00% p.a. on reducing balance again, on the basis of the financials of the company