FACTORING is a “continuing arrangement “ between a financial institution (the factor) and a business concern (the client) selling goods or services to trade customers (the customer) whereby the factor purchases the client’s accounts receivables/book debts either with or without recourse to the client and in relation there to controls the credit extended to the customers and administers the sales ledger.

Factoring Means Instant Cash
Factoring is a collection and finance service designed to improve your cash flow, turning your credit sales invoices into ready cash. Through factoring, SBI FACTORS agrees to

• Factor your invoices on a continuing basis;
• Pre-pay upto 80% of the value of the invoices immediately; and
• Perform the accounting function of sales ledger maintenance and the collection function of realising invoices factored..