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Factoring Main Content

Factoring Main Content

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Published by Mahek Chheda
Project related to factoring
Project related to factoring

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Published by: Mahek Chheda on Sep 25, 2012
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03/02/2015

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Through the e- factoring service (IIF - Internet Invoice Finance), you have the opportunity to

FACTORING SERVICES IN INDIA WITH RESSPECT TO HSBC BANK

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be informed immediately, anytime on the current status of your accounts, as well as of your
transactions with your debtors. You can retrieve fast and safe all the information you need.

Let us introduce you to HSBC factoring services and welcome you to a new highly reciprocal
relationship.

IIF - Internet Invoice Finance

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CHAPTER:5

CONCLUSION

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We can conclude that factoring services is also a new innovative way from which we can do

our business and earn profit.

In the Indian context, factoring is being viewed as a source of short-term finance. The

estimated aggregate potential demand for factoring (finance). There seems to be a tendency to

view factoring primarily as a financing function - a source of funds to fill the void of bank

financing of receivables for small-scale industries and others. In launching factoring service,

the thrust should be in the twin areas of receivables management, and credit appraisal;

factoring agencies should be viewed as vehicles of development of these skills. Since the

small-scale sector lacks these sophisticated skills, factors should be able to fill the gap.

Giving priority to financing function would be self-defeating as receivable management

would be given the back-seat. It is for the factors to generate the surpluses to mop up the

additional resources and then embark on financing function. However, for policy reasons,

should these go hand in hand, then the accent should be on receivable management otherwise,

these agencies would end up as financing bodies.

From the firm‟s point of view, factoring arrangements offer certain financial benefits in the

form of savings in collection costs, reduction in bad debt losses, and reduction in interest cost

of investment in receivables. On the other hand, the firm incurs certain costs, in the form of

commissions and interest on advances. Therefore, to assess the financial desirability of

factoring as an alternative to in-house management of receivables, the firm must assess the

net benefit of this option, using the profit criterion approach. The factors have to establish

their credibility in offering better management of receivables and financing at competitive

rates to the clients.

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CHAPTER 6

BIBLOGRAPHY

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From the Internet:-

www.hsbc.in

www.google.com

www.wikipedia.com

www.scribd.com

www.managementparadise.com

From the Book:-

Bharati. V. Pathak, The Indian Financial System, Pearson Publication

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