Factoring of Accounts Receivable is a mode of financing receivables arising out of supply of goods or delivery of services on credit. This revolving short term financing facility enables the suppliers/ service providers to realize the maximum portion of the payment soon after the delivery is made to the buyer. In addition to financing, factoring offers value added services like:

Sales ledger administration
Follow up and physical collection of payments
Monthly reporting

Who can Avail Factoring

Factoring is available to all industries that provides services or deliver products to corporate entities i.e. institutional buyer/ debtor. As a rule of thumb:

• Your business must sell to a credit worthy debtor/buyer on a regular basis
• A receivable/ invoice/ bill that can be verified or has an acceptance by the institutional buyer/debtor
• Having multiple institutional buyers/ debtors is even better

Services Offered

Generally, IDLC provides the Client/Suppliers with the following services:

• Up-front Financing: Financing is made as soon as the Client/Supplier makes the supply and submits the received copy of the bill/ invoice to IDLC.
• Follow-up & Physical Collection of Payment: The Factor follows up collection in a structured process and ensures physical collection of payment from Buyers located at different geographical locations.
• Reporting: The Factor provides detailed reports of the Sales Ledger that are very helpful for the Client/Supplier's management decision making.
• Advisory Services: Assist the Client/ Supplier by making suggestion about the credit rating of a Buyer and thus enable the Client/ Supplier to fix proper credit limit for each Buyer.