ADVANTAGES FOR THE SELLER :

– Seller gets funds immediately after the sale is effected and on presentation of accepted sales invoices and Promissory notes.

– Major part of paper work and correspondence is taken care of by the factor.

– Follow-up, for recovery of funds, is done mainly by the factor.

– Interest rates are not as high as normal discounting.

– Increased cash flow to meet payroll.

– Immediate funding arrangements.

– No additional debt is incurred on balance sheet.

– Other assets are not encumbered.

– Approval is not based on seller’s credit rating.