Factoring Services in Banks

It was earlier suggested that that the pre-payment amount offered by banks for the receivables acquired under factoring should not exceed 80% of the invoice value.

it is now advised that banks may decide the percentage based on their own assessment of the credit worthiness of the assignor/ buyer, due diligence carried out by them and other commercial considerations.

Based on RBI Circular dt 19/11/15. Please visit www.rbi.org.in for any further clarification if required…..   Poppy