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
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