In today’s competitive market, delayed payments can create major cash flow challenges—especially for Micro, Small, and Medium Enterprises (MSMEs). That’s where factoring steps in as a powerful financial solution.
What is Factoring?
Factoring is a financial service that allows businesses to sell their invoices to a third party (called a factor) at a discount, in exchange for immediate cash flow.
Factoring = Converting invoices into instant working capital
This model is a game-changer for businesses struggling with delayed receivables and liquidity issues.
Why Factoring is Booming in India
The Indian factoring market is experiencing rapid growth due to several key factors:
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✅ Simplified NBFC norms by the RBI
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✅ Government-backed TReDS platform enabling transparent invoice trading
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✅ A massive untapped MSME market
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✅ Strong support from Fintech + NBFC ecosystems
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✅ Only 2.6% of MSME credit currently comes through factoring—indicating huge growth potential
Want to Start a Factoring NBFC? Here’s How:
If you're looking to enter this space, here are the key steps:
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Incorporate your company with factoring as an objective
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Maintain the minimum Net Owned Fund (NOF) as prescribed by RBI
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Obtain a Certificate of Registration from the RBI
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Set up robust infrastructure for credit assessment and collections
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Ensure ongoing compliance with RBI regulations and guidelines
Factoring: More Than Just a Service
Factoring is not just a way to manage receivables—it's a growth engine for MSMEs, unlocking liquidity, improving cash cycles, and fueling business expansion.
📞 Ready to Explore the Booming Factoring Market?
Contact us for a free consultation and get started on your journey into the world of factoring.
📞 +91 93113 47006