Benefits to clients with SBI Factors Limited

Factoring flexible funding options place clients in the driver's seat to negotiate more business volumes with their debtor. clients gain the confidence to accept larger orders and enter into new markets, all without being burdened by extended payment terms.

SBI Factors provides the flexibility to choose from multiple currencies, viz, EURO, USD, GBP, and INR, in offering to the clients engaged in export transactions. This option provides an opportunity to manage the exchange rate risks by the clients as well as use the funding so aligned with their international operations.

The financing services provided by SBI Factors are not intended to be in replacement to, rather supplementary to, their existing banking relationships. Proceeds from factored invoices are deposited directly into the client's cash credit account with their principal working capital bank. clients are able to continue to use their existing banking arrangements, combined with the additional funding available to them through SBI Factors.

The reporting on the position of their accounts by the MIS will be available to the clients who avail their services from SBI Factors. The clients will thus be positioned to service their receivables. Further, clients have access to their account information through a simple web-based solution provided by SBI Factors.

One of the many added benefits with a partnership with SBI Factors is the strong collections available to clients. Follow up on outstanding receivables is taken care of by SBI Factors, which also enhances the probabilities of payment realization for the client. This therefore reduces the administrative burden of the client and allows the business activity to continue with their mainstay business.

SBI Factors offers flexible and adaptable factoring facilities matching the needs of the client. The financing is directly proportional to the client's volume of sales with the debtor and the quality of receivables (reflected by payment history of debtor). Stronger the debtor profile, lower the requirement of collateral.

One of the regular tussles that small and medium-sized enterprises face, is negotiating favourable interest rates. SBI Factors can offer competitive and flexible interest rates and help the clients' financing costs to go down. Another hallmark of SBI Factors services is a provision for differential pricing that would depend on the risk profile of every debtor. This would mean stronger the debtor, better the pricing to client.

With enhanced cash flow, the client can now easily enhance it's client base. With SBI Factors, the client gets swift and reliable funding to acquire more orders and establish strong relationships with new as well as established customers.

Perhaps the most important advantage of factoring with SBI Factors is that funds are available immediately. Clients no longer need to wait for extended payment terms agreed upon with debtors. Once the shipment goes out, they can receive an excellent percentage of the invoice value almost overnight, therefore reducing cash flow constraints.

Factoring allows clients to sell on open account terms, which bypasses debtors from going through the complex process of opening LCs. The client therefore saves the debtor's valuable time and administrative resources as well as saves his cost associated with LCs. This flexibility may be a major breakthrough for clients operating both domestic and international markets.

A factoring company like SBI Factors relies more on the debtors payment track record, rather than a client's financial history or collateral.This facilitates quick processing and client can access money much quicker. Faster TAT is SBI Factors USP.