1. Domestic factoring (with/without-recourse).

2. Export factoring (with recourse).

3. Purchase bill factoring.

4. Factoring of domestic/export bills drawn under LC or bank guarantee

With/Without Recourse Factoring

Under With Recourse Factoring, if buyer fails to pay us, recourse is made to you. In case of “Without Recourse Factoring (WRF) ”, no recourse will be taken against you. Without Recourse Factoring is a finance option, which is an off-balance sheet item, and it improves Return On Assets (ROA) substantially.

Export Factoring
Under export factoring, we factor export invoices drawn on overseas buyers and prepay to clients an agreed percentage of the invoice value immediately. We are members of FCI (an umbrella organisation of International factoring companies), which has members spread over 50 countries around the world. Under the two-factor system, the Factor handling the collection of export receivables of clients (exporters) is called Export Factor (EF) and the Factor handling collection and credit protection services is called Import Factor.

The following steps are involved:
1. The exporter ships the goods to importer.
2. The exporter assigns his invoices through the export factor to the import     factor who assumes the credit risk. (as per prior arrangement).
3. The Export factor prepays invoices
4. The importer pays the proceeds to the Import factor, who transfers the     amount to Export factor
5. The export factor deducts prepayment already made, other charges and     pays the balance procee ds to the exporter.

Purchase Bill Factoring (PBF)
PBF is a financing facility for making instant payments to your suppliers for purchase of raw materials, stores and spares etc on cash terms. This facility enables you to bargain the best terms on price, quality and delivery schedule. Cash discounts received maximize your profits.

Domestic Factoring Against LC Or Bank Guarantee
In certain industries like fertilizers, animal feed etc, bank guarantees/LCs are generally obtained against credit supplies. This facility enables them to encash these credit sales . Here factoring is extended against the LC or Bank Guarantee established by the buyer. In case the buyer fails to pay, the LC or Bank Guarantee will be invoked.