FACTORING SERVICES IN INDIA

ABSTRACT

Factoring is not a very old concept for India. Factoring is a complete financial package that combines working capital financing, credit risk protection, accounts receivable bookkeeping and collection services.Under factoring there are three parties involved i.e seller, buyer and the factor. There are different types of factoring depending on domestic or international factoring. The objective of my study is to discuss about different types of domestic factoring. And to discuss in detail International factoring its advantages to exporter and Importer, how international factoring work, reasons for the non-development of factoring service in India and future of factoring service in India. My complete paper is based on secondary data available for different sites. I found that factoring is still in its nascent stage and it requires lot of care on the part of government and factoring services provider so that it can grow in future.

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