Features

• Loan Tenure: 1 year from the Sanction date.
• Up to 80% of advance financing against verified invoices.
• Credit Period is based on the client cash flow cycle (maximum of 180 days).
• Payment assignment from the buyers.
• Loan Limit: Any amount that is justified with sales (and incumbent on management approval).

Eligibility

• Must have recurring sales on credit to corporate buyers.
• Minimum 2 years of continuous business operation and experience.
• Age between 21 years to 60 years.
• Business within service range of Advance Finance branches.

How I can use this loan

If you supply goods and/or services to large corporate entities regularly you may often find your working capital trapped for significant periods, limiting the volume of new work orders accepted. Under this facility, you can receive up to an 80% advance on verified invoices. You can avail financing against multiple invoices from multiple buyers simultaneously (but within the Credit Limit). The outstanding balance with Advance Finance is settled through collections from the buyers once the invoice/bill is matured (with any remaining balance refunded to you).

Why would I avail a Factoring (of Accounts Receivable) facility?

• Accelerated sales growth through injection of fresh funds to execute work orders while awaiting payment from buyers.
• Build greater client partnerships with buyers resulting in greater sales.
• Improve working capital and liquidity management by reducing Days Sales Outstanding.
• Manage and improve Cash Flow precisely and efficiently in the balance sheet, reducing operating costs.

Required Document

Please download the required documents to avail this service from here.