Factoring as a traditional concept has stood the test of time. It enables the businesses to unlock cash flows which remain locked in receivables as sales largely happen on credit terms. India Factoring and Finance Solution Pvt. Ltd. Converts your receivables in cash thereby supporting your working capital requirements.
Factoring is a process by which businesses are able to maintain the cash flow by selling their invoices to a Factor. It is an interesting instrument in the business world especially in the manufacturing and organised retailing sector where cash is important for the day to day survival. The concept is also known as invoice factoring or invoice discounting. India Factoring whose registered name is India Factoring and Finance Solution Pvt. Ltd. India Factoring is one of the most active financial organizations offering instant factoring in India. India Factoring is specializing in converting your receivables in cash to keep the cash flow in your business intact and healthy.
If you are new to this concept, you may have a question in mind – how does it work? If you do a little bit of research in this domain, you will find that factoring is an age-old business process to keep the cash flow in a business. Almost every industry takes the help of factoring in some way or other but the manufacturing sector needs it more than others. When you are selling products you manufacture, you might have lakhs or crores of money blocked in the market as buyers or large retailers are not always interested in cash transactions. The concept of factoring works at this point. As a seller, you are selling the receivables in the market to a Factor at a discount. The Factor acts as a financial intermediary whose interest lays in the discount it gets from a seller like you. India Factoring acts as a financial intermediary accepting the responsibility of collecting the money blocked in the market but providing you with the requisite finance as agreed upon. The upfront fund you get from India factoring helps you keep the business processes swinging in rhythm.
The concept of factoring in India is subject to the factoring Regulation Act, 2011. The Reserve Bank of India keeps close vigilance to this sector. The factoring companies are bound by the rules and regulations imposed thereupon.
For your cash needs and to take the advantage of factoring, you can always contact India Factoring for all necessary information and how the system will work.
About India Factoring: India factoring and Finance Pvt. Ltd. Is a well-known financial services company specializing in working capital solutions through factoring. The company is a subsidiary of FIM Bank, Malta. Here in India, it is registered with RBI as an NBFC.
For more information log on to https://www.indiafactoring.in/home