Factoring Services in Indian Financial Market (The Recent Trends)

Factoring is an unique financial innovation and a quite popular mechanism of managing, financing and collecting receivables in developed world. It has just been introduced in India. In fact, factoring ensures a definite pattern of cash inflows from credit sales, continuous factoring may virtually eliminate the need for the credit and collection department, which will substantially cut down in the fixed cost of Supplier. This paper suggests that prospects of factoring services are wider and better in India in all respect.