Modernisation & Transformation Fund


Hassle-Free Debt Collection


IFCM has come up with this solution that aims to provide cash-flow to companies by factoring their credit sales invoices.

Instant liquidity solutions to cash strapped businesses by unlocking receivables.
Business continuity without disruption.
No collateral security required.
Hassle-free debt collection.
Allows to free up personnel resources for business operations.
Minimise bad debts through credit insurance cover.


Eligible Sectors – Trading, Manufacturing,
Agro-Industry, and other productive sectors
Financing up to 90% of invoice amount
Local and Export receivables considered
Business-to-business (B2B)
Preferential interest rate
Suited for credit terms up to 90 days

Documents Required

Certificate of Incorporation.
Business Registration Card.
Valid Trade licence.
VAT Certificate.
Recent proof of address of the business.
Bank statements for last 6 months.
Last 3 Financial Statements.
List of debtors.
Constitution or Memorandum & Articles of Association.
KYC of Directors/Shareholders.


What is Factoring?
Factoring is a means of funding of accounts receivable against Assignment in favour of a Factor. Factoring helps to generate instant liquidity and allows business continuity without disruption. In simple words, it is a receivables management and financing service designed to accelerate the seller’s cash flow.

In the process, purchasing power increases, production moves up, sales turnover and profitability improve.

Factoring can be ‘with’ or ‘without’ recourse. It covers Export as well as Domestic Receivables.

What is “Recourse” and “Non-Recourse” factoring?
In “recourse” factoring, in the event of the buyer failing to pay on maturity, the seller must pay back the advance obtained from the factor. In “non-recourse” factoring, Factor provides finance and bears the risk of default in case of non-payment by the buyers.
What is the use of factoring?
Factoring is a transaction whereby the client selling goods or services on credit terms, invoices the goods/services to a buyer; assigns the invoices to the Factor and receives prepayment up to 80-90% of the invoice value immediately. The Factor turns the seller’s invoices into cash and gives the seller an instant access to his dues, instead of waiting until the payment is received from the buyer. The seller will, therefore, have a healthier cash flow, which will accelerate growth.
How much will IFCM advance to the seller?
IFCM can finance up to 90% of the invoice amount.
What happens to the remaining amount which is not financed?
The Factor will collect the full invoice amount from debtor and remit the remaining 10% to the seller after deducting all its interest and fees accrued.
Do I have to inform my debtors when using factoring for invoices?
Do I have to give security/collateral for factoring?