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Factoring is discounting of sales offered on credit terms without recourse to the seller. A factor provides such factoring service which includes financing, sales ledger, collection and credit protection. Factoring is advantageous to an exporter compared to traditional bank products or credit insurance. Traditional bank products are linked to the inventory and book debt projections submitted by the company to the bank at the beginning of the financial year and accordingly, limits are approved by the bank for that year.
They are driven by collateral, high margins and a letter of credit or bill of exchange from the buyer. However, in the case of factoring, limits are linked to actual sales and growth therein. So practically speaking, the limit may be enhanced several times a year, giving greater flexibility and liquidity in managing the working capital cycle of the exporter.
Money Management Consultants Ltd
New Delhi, India
Free Member, Joined :05/11/2007
No of Topics Posted : 113
Reply/Comments : 14
In india which are the companies whi do factoring?
Free Member, Joined :01/29/2004
No of Topics Posted : 1
Reply/Comments : 9
The main names that provide factoring services in India are:
Canbank Factors Limited,
SBI Factors and Commercial Services Pvt,
The Hongkong and Shanghai Banking Corporation Ltd,
Foremost Factors Limited,
Global Trade Finance Limited,
Export Credit Guarantee Corporation of India Ltd,
Citibank NA, India and
Small Industries Development Bank of India (SIDBI).
Money Management Consultants Ltd
New Delhi, India
Free Member, Joined :05/11/2007
No of Topics Posted : 113
Reply/Comments : 14
Factors Chain International(FCI) is a global network of leading factoring companies, with aim to facilitate international trade through factoring and related financial services. FCI helps its members achieve competitive advantage in international trade finance services.FCI operate as an open chain, encouraging quality factoring companies to join its ranks.
Members of FCI in India are:-
Canbank Factors Limited
P.O. Box No. 9951
No. 17, 1st Floor, Seshadri Road
560 009 BANGALORE
Tel.: +91-80-2226 8248/49
Citibank NA,
Citigroup Center, 6th Floor
Bandra Kurla Complex, Bandra (East)
400 051 MUMBAI
Tel.: +91-22-4001 5757 (Board)
Export Credit Guarantee Corporation of Ltd
Factoring Division
Express Towers 10th Floor
Nariman Point
400 021 MUMBAI
Tel.: +91-22-6659 0500
Foremost Factors Limited
Pawan House, 2, Zamrudpur Community Centre
Kailash Colony Extension
110 048 NEW DELHI
Tel.: +91-11-2923 5857 Int'l.Dept.
Global Trade Finance Limited
Metropolitan Building, 6th Floor
Bandra-Kurla Complex Bandra(E)
400 051 MUMBAI
Tel.: +91-22-6694 6000
SBI Factors and Commercial Services Pvt. Ltd.
61, 6th Floor, Sakhar Bhavan
Opp. Oberoi Hotel, Nariman Point
400 021 MUMBAI
Tel.: +91-22-4002 7717
The Hongkong and Shanghai Banking Corporation Ltd.
Factoring Services Division
APJ Chambers, 3 Wallace Street, Fort
400001 MUMBAI
Tel.: +91-22-2219 4910
All the above are the main factoring players in India at the moment.
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