| The Rs 731.64-crore company is eyeing a market of burgeoning outsourcing and international trade. |
| SBIF, which pioneered the factoring services in India in February 1991, has been concentrating its operations in the western and northern parts of the country. |
| It started with branches at Pune, Baroda and Mumbai, before it started operations at Delhi. |
| In December 1997, the company opened its first southern branch at Coimbatore. |
| This branch has emerged a key player in SBIF's operations, catering to the needs of industrial and trading concerns in Tamil Nadu, Kerala, Karnataka and Pondicherry. This has inspired the current expansion. |
| Focused on financing the small and medium enterprises, SBIF's support is sales linked. |
| The assistance is extended based on the client's customers' strength and past payment record. |
| "The selection of clients is carefully based on their credibility," D K Jain, managing director and CEO of SBIF, said. |
| Domestic factoring (with recourse and without), purchase bill factoring, usance bills drawn under LCs or guarantees and dealer channel finance are at present the products on offer from SBIF. The company is likely to introduce export factoring shortly. |
| Geared towards fast response and timely financing, at market related interest rates, SBIF offers grace period of 30 days without charging penal interest. |
| The company also offers factoring facilities to trade and service sectors. It has tied up with SBIFAST "" the cash management product of SBI "" for faster realisation of outstation cheques. The company charges interest rates varying from 10.75 per cent to 14 per cent and in exceptional cases market related finer rates are offered. |
| The advantages of factoring lie in it offering low cost funds, lower margin, generous grace period, improved cash flow, interest on daily products, improved credit reputation, improved follow up of each invoice, quicker collection of receivables and improved turnover from better credit terms on sales. |
| SBIF posted a profit of Rs 8.25 crore in the year ended March 31, 2004, marking a 20.67 per cent increase over the previous year. |
| At present, the company is betting big on its expansion to Chennai and the other proposed new branches. |
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