Thursday, November 19, 2015
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