An overview of factoring services in India

This paper explains the overview of factoring services in India and the factoring idea. Factoring can broadly be defined as an arrangement in which receivables arising out of sale of goods or services are sold to the “factor” as a result of which the title to the goods or services represented by the said receivables passes on to the factor Factoring is a financial alternative for the administration of receivables. Factoring company pays the outstanding amount (Balance 20%-finance cost-operating cost) to the client when the customer pays the debt. Collection of debt from the customer is done either by the factor or the client depending upon the type of factoring.