Thursday, November 26, 2015

Bank Finance to Factoring Companies

Banks can now extend finance to support the Factoring Companies complying with the following criteria among others.
1. They derive at least 50% of their income from factoring activities.
2. The receivables, irrespective of whether on 'with recourse' or 'without recourse' basis, form at least 50%of the assets of the factoring company.

Based on RBI Circular dt 01/07/15. Please visit www.rbi.org.in for any further clarification if required…..   Poppy