Global Factoring Summit

The Factoring has grown up both in experience and expertise of products and services; however, it is considered to be at a nascent stage in India. Its quantitative growth in terms of number of service providers and total factoring turnover is relatively limited as compared to various other economies.
 

With the enactment of The Factoring Regulation Act, 2011, the legal framework of India for factoring has evolved into a more comprehensive regime and factoring companies have stretched their scope in the lines of businesses covered i.e. from traditionally operated notification arrangements to advanced options into diversified business segments. The outsourced credit function extends the small firms effectively addressable marketplace and insulates it from the survival-threatening destructive impact of a bankruptcy or financial difficulty of a customer.
 

Its growth future depends on spreading the awareness about legal, regulatory, and fiscal framework and on the removal of operational obstacles (if any) at the level of service providers or receivers in the untapped larger market with high potential for factoring business in India.