India Factoring & Finance Solutions Pvt Ltd (India Factoring) has announced the launch of its factoring business in Andhra Pradesh by opening its branch office here this month. It would provide financial services to small and medium enterprises here.
A JV of state-owned Punjab National Bank and Malta-based Fim Bank group, Banca IFIS of Italy and Mumbai-based Blend Financial Services, India Factoring currently has operations at Delhi, Mumbai, Chennai, Bangalore, Kolkata and Ahmedabad.
Factoring is a financial transaction where a business sells its accounts receivable such as invoices to a third party called ‘factor’ at a discount, which then finances the receivables and also administers and collects debt.
In developed markets, factors also provide bad debt protection. As the markets in India evolve and proper legislation is put in place, similar services would also be available for Indian consumers.
India Factoring was formed in December 2009 to offer trade finance services to SMEs with special focus on foreign trade and domestic factoring.
