Factoring is one of the oldest methods of financing and collection. In short, it means the transfer/assigning of receivables.

It is the transfer of the receivables of a business enterprise selling goods or services to the “Factor” company. Factoring transactions basically enable you to meet your responsibilities speedily as well as providing financing for the healthy growth of your company. If there is a cash crunch, it becomes difficult to grow a business. Factoring converts your sales into cash and facilitates stable growth.

• Cash flow is generated by assigning receivables on credit terms.
• Open account sales become easier and more reliable.
• The credit terms provided to the Buyers increases the competitive power of the Seller.
• Reduced receivable and debt entries liquidate the balance sheet of the Seller, leaving room for more operating capital.

In a simple sense Factoring transactions enable you to meet your urgent financing needs by providing you funding for a successful growth. If there is a cash crunch, growing a business can be difficult. Factoring converts your sales into cash and facilitates stable growth. Factoring services in this sense are an effective financial choice for all sizes of businesses at growth stage; both for corporate companies as well as all entrepreneurs doing business on credit terms.