Factoring is a powerful financial instrument specially designed to meet the post sales working capital requirements of the Industrial, Trade & Service sectors.  It is a portfolio of complementary financial services.  Besides financing up to 80% of the invoice value, the package includes

a) Sales Ledger administration
           
b) Debt Collection services
      
c) Credit Information services
        
d) Advisory services

With-recourse factoring is the service presently offered by us.  Under this category, besides  finance against the receivables at the agreed percentage, collection of receivables and maintenance of sales ledger are undertaken.  The client's customers are notified of our interest in the factored debt and the customers give an undertaking to pay the value of the debt to us directly on the due date.   We do not assume the credit risk of debts.  In case the customer does not pay the debts on maturity, we will have recourse against the client to recover the amount paid.

        2.  UNDISCLOSED FACTORING:

is another variant of  FACTORING where the customers of our clients are not notified of the factoring arrangement.  This category of facility is considered depending on the merits of the proposal, at our discretion.  In this type of factoring, maintenance of sales ledger and collection of debt are undertaken by the client himself.   The client undertakes to pay the value of the debts factored on the due dates irrespective of the fact whether the customer has paid the debts or not.  This facility is considered on a selective basis only.

Clients have instant access to their earnings and with the 'CASH FLOW' working smoothly, they can  promptly settle their creditors, avail cash discounts and improve their profits.

Sales ledger of the client is maintained by us on computer and provided every month.

We send monthly statements and reminders to the customers.  As we attend to the task of collecting the debt, clients can concentrate on building their business by attending to other important management functions such as planning, production and marketing.

Formalities with us are very simple and hassle free. Our quickness and flexibility in decision making will make clients feel comfortable in dealing with us.

LEASING

We consider small ticket leasing on select basis.

PUBLIC DEPOSIT PROGRAMME

ACCEPTANCE OF DEPOSITS FROM PUBLIC

We have been rated "FAA+" by CRISIL indicating HIGH DEGREE OF SAFETY. At present, we offer Interest at 6.75% p.a compounded monthly and deposits are accepted for 12 months and 7% for deposits for 15, 18, 21 and 24 months. For details please contact any of our Branches.

INTER-CORPORATE DEPOSITS
 
We accept short-term deposits from corporate bodies.

                 
COMMERCIAL PAPER
             

We issue COMMERCIAL PAPER. For our Rs.500 million Short-term Debt Programme, we have been rated P1+ by CRISIL  indicating HIGHEST SAFETY (VERY STRONG).

  
For our Rs.250 Million non-convertible debenture Programme, we have been rated AA indicating HIGH DEGREE OF SAFETY by CRISIL.

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Selling international accounts receivable to "Factors" is a flexible way of managing trade debts. The goods can be sold on open account terms and factor provides professional help with credit control, debt collection and sales accounting.

In Export Factoring, the Export Factor appoints an Import Factor, who provides credit protection / exposure limits for a particular importer and only upon such approval the Export Factor provides financial assistance to the Indian Exporter. In view of this there is no requirement of a letter of credit or a credit insurance cover.

	The Exporter signs a factoring agreement with the export factor. The factor then becomes responsible for all aspects of the factoring operations.
	The export factor enters into an agreement with a correspondent to serve as an import factor in the country where goods are to be sold.
	The import factor investigates the credit standing of the buyer and establishes lines of credit. This allows the buyer to place an order on open account terms without opening letters of  credit. The receivables are assigned to the import factor.
	The export factor will now advance up to 80 to 90 % of the invoice value to the exporter.
	On the due date the import factor collects the full invoice value and is responsible for the swift transmission of funds to export factor who then pays the exporter the outstanding balance.

	They can expand sales abroad by offering competitive terms  and conditions of payment.
	Adequate and timely finance is provided.
	They can offer open account terms by invoicing the buyer and granting deferred payment terms, usually 30 - 120 days.
	They are fully covered against credit losses.
	No Letters of Credit need to be arranged.
	Speedy collection and remittance improves cash flow.
	Administrative costs are reduced.
	They have access to a flexible source of working capital to which will help to increase export sales.
	No need to route the documents through the banker, export factor can send the documents directly to the importer.
	ECGC cover is not necessary.

	They can buy on open account terms without Letter of Credit.
	They can expand their purchasing power without utilizing their existing credit facilities.
	When once the credit lines are established they can import the goods without delay. They will find it easier to generate new avenues of supply.
	Continuous supply of materials as the documents are routed through import factor.
	They can save LC cost which is exhorbitant.

         
      
    
Invoice discounting is also a variant of factoring. Under this, we provide finance against invoices backed by LCs of Banks. This will enhance your liquidity by converting your credit sales into cash sales. Finance will be provided once LC opening bank confirms due date of payment. Rate of discount (interest) and charges are very competitive and in accordance with the market trends.

Disclaimer :
The purpose of this website is to provide information about the activities of the company.   Nothing contained herein constitutes any warranty or promise on any aspects of Performance/Services of the company.