UNDER THE GUIDANCE OF:

DR. NAMRATA SANDHU

SUBMITTED Click to edit Master subtitle style BY:

APOORVA SAINI ASHIMA GARG DIVYA MALIK KRITIKA BHARDWAJ MANIRAT KAUR (MBA 2011-13)

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CREDENTIALS
Industrial Finance Corporation of India (IFCI LTD.) A subsidiary of IFCI Limited. Pioneer of factoring business in India. Member of Factors Chain International. First Private company to initiate export factoring. IFCI as a group can provide term finance, venture capital funds, advisory services and working capital finance through Single Window Concept.

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IFCI FACTORS LIMITED KEY STRENGTH AREAS

Relationship Reliability

Flexibility

Service

Quality
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FACTORING

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WHAT ???
Definition: Financial transaction whereby a business sells its accounts receivables (i.e. invoices) to a factor for immediate money to finance its day to day operations.
Emphasis

is on the quality / collectability of the receivables than merely the firms credit worthiness. between three parties: the seller of goods, the buyer of goods (debtor), and 7/15/12 the factor.

Agreement

WHAT ???
Types:
Domestic

Factoring

International

Factoring

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WHAT ???
Enables you to:
Instantly Avail Take

turn your receivables to cash.

credit protection for your receivables. well informed credit decisions. your sales ledger administration.

Outsource

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WHY ???
Value to YOU:
Cash

up-front on credit sales security/collateral

Minimal 80

90% of your invoice funded credit terms to your clients

Competitive Quick

appraisal and sanction cash disbursal

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Instant

WHY ???
Value to YOUR CUSTOMER :
Better Save

credit terms for payment.

on high bank charges for credit. to scale up across the supply chain.

Ability No

documentation post acknowledgement of

undertaking to pay invoices to Factor.

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WHY ???
Value to YOUR BANK :
Factoring

compliments services of payments by Factor

provided by banking
Monitoring

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HOW ???

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Eligibility criteria for a client

S. No.
1. 2. 3. 4. 5.

PARTICULARS
Minimum borrowers net worth of Maximum TOL/TNW ratio Current ratio as per industry norm Company in existence (Minimum) Operations for past years

STANDARD
Rs.1.00 crore 6:1 3 years Profit making for last 2 Years

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STEP1-You invoice your customer for goods you sold. You sends a copy of your invoice to IFCI Factors.

COP Y

IFCI FACTORS LTD.

YOUR CUSTOMER

YO

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STEP 2- IFCI Factors pays you 80-85% of the Invoice instantly.

IFCI Factors Ltd. 80-85 % of invoice

YOUR CUSTOMER

YOU

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STEP 3- IFCI Factors gets in touch with your clients for payment
CHASE INVOICE

!
IFCI Factors Ltd. YOUR CUSTOMER

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STEP 4- On the due date, your client pays IFCI Factors 100 % of the Invoice value.
100 % OF INVOICE

IFCI FACTORS LTD.

YOUR CUSTOMER

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Step 5- IFCI Factors pays you the balance amount less charges.

IFCI FACTORS LTD.

BALANCE MINUS CHARGES YO

YOUR CUSTOMER

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PROVIDES SERVICES TO:

Partnering with IFCI Factors enables you to scale up your business while strengthening your relationship with your clients, partners & associates.
Manufacturing

Sector-automobiles,

pharmaceuticals, textile, garment and engineering.

Services

Sector -travelling,

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PRODUCTS AND SERVICES

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Domestic Sales Bill factoring

For sales within India, Steps in Domestic Factoring:

Customer ( Buyer) Client (Seller)

order

Client

(Seller) IFCI Factors Ltd.

prepayment

Client

(Seller)

goods/services 7/15/12

Multi Service Package At IFCI Factors Limited , the Domestic Factoring facility comprises of the following:
Instant Sales

Prepayments

Ledger Administration of Payments

Collection Advisory

Services

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Purchase Bill factoring

As

the name implies, Purchase Bill Factoring facilitates instant cash for purchases ,made at competitive rates and on flexible terms. It allows purchaser to bargain for cash terms, better quality and immediate delivery.

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Export Sales Bill Factoring For sales outside India

For your exports, International Factoring works to your advantage by providing you funding, credit assessment, credit protection and collection services. will help you enhance your competitiveness in the global market with overseas credit protection. gives you speedy and reliable reporting on your overseas customer accounts.
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It

It

ADVANTAGES TO YOU:

Commercial Credit Risk Management Payment Collection:

Overseas Prompt Sales

Prepayments

Ledger Administration: for Growth

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Opportunity Advisory

Services

THANK YOU

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