What is Factoring?
Factoring facilitates exports for SMEs by providing credit to overseas buyer to import goods offered for financing capital goods or services on deferred payment terms The exporter enjoys hassle free transaction and complexities of international trade. This involves buying a business’s unpaid invoices at a discount. The business gets a percentage of the invoice, say 80 to 85%, within a few days, and the factoring company takes ownership of the invoice and the payment process.
