4 Unit Asset & Fund Based Financial Services

ASSET & FUND BASED
FINANCIAL SERVICES
VIJAY,
MBA,
VAAGESWARI COLLEGE,
KARIMNAGAR, TELANGANA.
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FACTORING
Due to globalization there are advantages and
disadvantages. If we think the second part, there has been a
slowdown in economic activity globally.
Financial markets all over the world are facing rough weather.
In this scenario, management of cash and receivables is of
utmost importance to both corporate giants and small firms
Many businesses have collapsed for want of liquidity. The
key to success lies in converting credit sale into cash within a
short period of time.
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There are many traditional methods such as

bill discounting, consumer credit through
financial intermediaries etc., to raise short
term funds.
Recently, new financial services, such as
FACTORING & FORFAITING, have come
into existence to assist the financing of
credit sales and thereby, help the business
unit to tide over the liquidity crunch .
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Factoring is a continuing arrangement

between a financial intermediary known as
the factor and a business concern (the client)
whereby the factor purchases the clients
accounts receivable/book debts either with
or without recourse (option) the client.
This relation enables the factor to control the
credit extended to the customer and
administer the sales ledger.
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Besides purchase of accounts

receivables, factor may provide a wide
range of services such as the following:
Credit management and covering the
credit risk involved.
Provision of prepayment of funds against
the debts if agreed to buy.
Arrangement for collection of debts.
Administration of the sales ledger.
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Factoring is a collection and finance service

designed to improve the clients (sellers) cash
flow by turning his credit sales invoices into ready
cash.
THE ORIGIN OF FACTORING:
Modern factoring came into existence in the
1920s.
Factoring as financing against receivables got a
good in the 1930s.
But, there was no complete framework of
statutory law for a factoring arrangement.
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In the UK, factoring came into

existence in the form of invoice
discounting.
In 1976, the leading factoring
companies of the UK formed the
Association of British Factors (ABF).
Now it is spreading all over the world.
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FACTORING MECHANISM
The client sends an invoice to his customer in the usual
way but adds a notification that the invoice is assigned
to and must be paid to the factor with whom he has
made an arrangement.
The client, then submits copies of invoices to the factor
with a schedule of offer accompanied by the receipt,
delivery challan, or any other valid proof of dispatch.
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The factor provides prepayment up to 80% of the invoice

value and follows-up with the customers for realization of
payments due.
The balance payment is made immediately on
realisation.
The factor sends a monthly statement of accounts to the
client to keep him informed of the factored invoices.
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FACTORING
MECHANISM
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10
FACTORING TRANSACTION
CLIENT
1. Customer place an order
with the client for goods

and/or services on credit;
client delivers the goods and
sends invoice to customers.
FACTOR
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CUSTOMER
11
CLIENT
2. Client send invoices to factor.
FACTOR
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CUSTOMER
12
CLIENT
FACTOR
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3. factor makes
prepayment up to 80%
to client and sends
periodical statements.
CUSTOMER
13
CLIENT
4. Monthly statement of
accounts to customer
and follow-up.
FACTOR
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CUSTOMER
14
CLIENT
5. customer makes
payment to factor.
CUSTOMER
FACTOR
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CLIENT
6. Factor makes
balance 20%
payment on
realisation
to the client.
CUSTOMER
FACTOR
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CLIENT
CUSTOMER
FACTOR
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Factoring companies in India:
Canbank Factors Limited: http://www.canbankfactors.com
SBI Factors and Commercial Services Pvt. Ltd: http://www.sbifactors.com
The Hongkong and Shanghai Banking Corporation

Ltd: http://www.hsbc.co.in/1/2/corporate/trade-and-factoring-services
Foremost Factors Limited: http://www.foremostfactors.net
Global Trade Finance Limited: http://www.gtfindia.com
Export Credit Guarantee Corporation of India

Ltd: https://www.ecgc.in/Portal/productnservices/maturity/mfactoring.asp
Citibank NA, India: http://www.citibank.co.in
Small Industries Development Bank of India

(SIDBI): http://www.sidbi.in/fac.asp
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Standard Chartered Bank: www.standardchartered.co.in
19
Factoring charges:
FINANCE CHARGE: Finance charge is computed on the
prepayment outstanding in the clients account at monthly
intervals. Finance charges are only for financing that has
been availed. These charges are similar to the interest
levied on the cash credit facilities in a bank.
SERVICE FEE: It is a nominal charge levied at monthly
intervals to cover the cost of services, namely, collection,
sales ledger management etc. this fee is determined on
the basis of criteria such as the gross sales value, the
number of customers, the number of invoices and the
degree of credit risk represented by the customers etc.
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Both these charges taken together

compare very favorably with the
interest rates charged by banks and
financial institutions for short-term
borrowings.
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Advantages of Factoring:
Factoring is beneficial to the client, customers and banks.
BENEFITS TO CLIENT:
The clients credit sales are immediately converted into
ready cash as the factor makes a payment of around 80%
of the factored invoices in advance.
The client can offer competitive credit terms to his buyers
which, in turn, enables him to increase his sales and
profits.
The cash realized from credit sales can be used to
accelerate (speed up) the production cycle.
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The client is free from the tensions of monitoring his

sales ledger and can concentrate on production,
marketing and other aspects.
With the above point, reduction in overhead expenses
and an increase in sales and profits can be takes place.
Efficient management of one component can have
positive impact on other component. For example, an
increase in liquidity enables the firm to avail of
discounts on purchase of raw materials.
The client can expand his business by exploring new
markets.
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Benefits to customers (Buyers)

Factoring facilitates the credit purchases of the
customers as they get adequate credit period.
Customers save on bank charges and expenses.
The customer has not to furnish any documents. He
has just to acknowledge the notification letter, that is, an
undertaking to make payment of the invoices to the
factor.
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Customers are furnished with

periodical statements of outstanding
invoices by the factor.
Factoring does not impinge (encroach)
on the customers rights.
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BENEFITS TO BANKS:
Factoring improves liquidity of the clients
and, thereby, improves the quality of
advances of banks. Factoring is not a
threat to banking, it is a financial service
complementary to that of the banks.
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INTERNATIONAL FACTORING
When the seller and buyer are located in different countries and a
factoring agreement takes place it is called International Factoring.
International Factoring facilitates International Trade.
It is a comprehensive (complete) range of receivables management

and financing services wherein a factor provides an exporter with at
least two of the following services:
Credit guarantee.
Credit management and bad debt protection.
Finance up to 90% of the invoice value on shipment to approved
debtor.
Collection services.
Professional sales ledger and analysis.
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Export receivables that can be factored should have the

following characteristics:
The buyers country should be covered by the factor.
The exporters performance obligation should
completed at the time, the exporter presents an invoice
for prepayment.
There should be multiple shipments or a continuous
sales flow on an ongoing basis with the same buyer or
buyers.
Factoring transactions are best suited for credit periods
up to 180 days.
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INTERNATIONAL FACTORING TRANSACTION

1
EXPORTER
IMPORTER
4
10
[7]
2
EXPORT FACTOR
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IMPORT FACTOR
29

1.
Receives the order
EXPORTER
IMPORTER
4
10
[7]
2
EXPORT FACTOR
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IMPORT FACTOR
30

1.
Receives the order
2 Credit limit request
EXPORTER
IMPORTER
4
10
[7]
2
EXPORT FACTOR
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9
IMPORT FACTOR
31

1.
Receives the order

IMPORTER
4
10
[7]
3. Approval
EXPORTER
2
EXPORT FACTOR
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9
IMPORT FACTOR
32

1.
Receives the order

IMPORTER
4. Delivers goods
10
[7]
3. Approval
2. Credit limit request
EXPORTER
2
EXPORT FACTOR
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9
IMPORT FACTOR
33

1.
Receives the order
5. Submits documents
3
3. Approval
EXPORTER
IMPORTER
4. Delivers goods
10
[7]
5
EXPORT FACTOR
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9
IMPORT FACTOR
34

1.
Receives the order
IMPORTER
4. Delivers goods
10
EXPORT FACTOR
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[7]
6.Prepayment
3. Approval
EXPORTER

9
IMPORT FACTOR
35

1.
Receives the order
IMPORTER
4. Delivers goods
10
7. Documents
[7]
6.Prepayment
3. Approval
EXPORTER
8
EXPORT FACTOR
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IMPORT FACTOR
36

1.
Receives the order
4. Delivers goods
10
7. Documents
[7]
8
EXPORT FACTOR
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8. Collection
IMPORTER
6.Prepayment
3. Approval
EXPORTER
IMPORT FACTOR
37

1.
Receives the order
4. Delivers goods
10
7. Documents
[7]
8
EXPORT FACTOR
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8. Collection
IMPORTER
6.Prepayment
3. Approval
EXPORTER
9. Payment remittance
IMPORT FACTOR
38

1.
Receives the order
10
7. Documents
[7]
8
EXPORT FACTOR
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8. Collection
4. Delivers goods
10.Balance Payment
IMPORTER
6.Prepayment
3. Approval
EXPORTER
IMPORT FACTOR
39

1.
Receives the order
10
7. Documents
[7]
8
EXPORT FACTOR
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8. Collection
4. Delivers goods
10.Balance Payment
IMPORTER
6.Prepayment
3. Approval
EXPORTER
IMPORT FACTOR
40

1
EXPORTER
IMPORTER
4
10
[7]
2
EXPORT FACTOR
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IMPORT FACTOR
41
1. Receives the order

3. Approval
4. Delivers goods
6. Prepayment
7. Documents
8. Collection
10.Balance Payment
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IN SHORT:
The exporter ships the goods to the importer.
The exporter assigns his invoices through the export
factor to the import factor who assures the credit risk (as
per prior arrangement).
The export factor pre-pays the invoices.
The importer pays the proceeds to the import factor, who
transfers the amount the export factor.
The export factor deducts pre-payment already made and
other charges and pays the balance proceeds to the
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exporter.
EXPORTERS BENEFITS
A factor assumes all commercial credit and political risks.
An import factor offers credit risk protection in case the buyer does not
pay invoices within 90 days of the due date.
There is a reduction in the administrative cost as the exporter is dealing

with only one export factor, irrespective of the number of countries
involved.
It enables the exporter to offer open account terms to qualified

customers and compete with overseas suppliers.
Valuable information on the standing of the foreign buyers on trade

customs and market potential is provided to the exporter to expand the
business. This eliminates the cost of gathering credit information.
An import
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factor follows the receivables and speeds up the collections. 44
BENEFITS TO IMPORTERS
He can pay invoices in the country locally.
He deals with the local agency, i.e., the import
factor.
Minimum documentation is required.
OTHER THINGS:
Payment is made to the exporter based on the
factoring arrangement.
Domestic factoring commission is charged by
the factor for the services that they render.
It ranges from 1% to 2.5%
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RBI GUIDELINES:
The RBI issued guidelines in July 1990 to
provide a statutory framework to enable
banks to carry out factoring.
The banks are permitted to set up
subsidiaries/investing factoring companies
jointly with other banks with the prior
approval of RBI.
Banks are also permitted to undertake
factoring departmentally.
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Factoring companies should not

finance other factoring companies.
A bank can invest in the share of the
factoring companies including its
factoring subsidiaries.
But it should not exceed 10% of the
paid up capital and reserve of the bank
in aggregate.
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SOME OF THE FACTORING COMPANIES
SBI Factors and Commercial Services (SBI FACS) Ltd. It

was the first factoring in India which started functioning in
April 1991.
It was promoted jointly by the SBI, Union Bank of India &
SIDBI.
Canbank Factors Ltd. Was jointly promoted by the Canara
Bank, Andhra Bank & SIDBI in 1997.
Foremost Factors Ltd. (FFL) it was set up as a joint
venture with National Bank of America in 1997.
Global Trade Finance Ltd (GTF), it was promoted jointly by
Export-Import (EXIM), Bank of India, International Finance
Corporation and West LB, Germany.
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FORFAITING
The word FORFAIT means in French to relinquish
(Surrender) a right.
In this, an exporter surrenders his right to a receivable
due at a future date in exchange for immediate cash
payment, at an agreed discount, passing all risks and
responsibilities for collecting the debt to the forfaiter.
Forfaiting is the discounting of international trade
receivable on a non-recourse basis.
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Which means that there is no comeback on an

exporter if the importer does not pay.
A forfaiter deducts interest (in the form of
discount) at an agreed rate for the full credit
period covered by the receivables.
This system was originally used in the Europe
countries in the 1960s. But later it is used all over
the world. In 1992, the RBI approved Forfaiting as
an export financing in India.
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This is generally suitable for high value exports like heavy

machinery, capital goods, consumer durables, vehicles,
bulk commodities, construction contracts and project
exports.
However, not many exporters have adopted this option,
because the major problem is that the minimum amount
of transaction prescribed by foreign banks offering this
service is $2,50,000.
This amount is too high for an average exporter in India.
This has been reduced
London based West Merchant Bank which is providing
this services in India, has fixed the Minimum amount of
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51
transaction at $1,00,000.

1
Difference between factoring and forfaiting
EXPORTER
IMPORTER
4
10
[7]
2
EXPORT FACTOR
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IMPORT FACTOR
52
A FLOW CHART OF A FORFAITING TRANSACTION

2
EXPORTER
IMPORTER
3
5
8
FORFAITER
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10
BANK
53

2
EXPORTER
IMPORTER
Commitment to purchase debt
1.
8
FORFAITER
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10
BANK
54

EXPORTER
2. Commercial contract
3
IMPORTER
1.
8
FORFAITER
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10
BANK
55

EXPORTER
3. Delivery of goods
IMPORTER
1.
8
FORFAITER
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10
BANK
56

EXPORTER
IMPORTER
1.
4. Gives guarantee
8
FORFAITER
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10
BANK
57

EXPORTER
IMPORTER
1.
4. Gives guarantee
5. Hands over documents
8
FORFAITER
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10
BANK
58

EXPORTER
IMPORTER
1.
6. Delivers documents
4. Gives guarantee
8
FORFAITER
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10
BANK
59

EXPORTER
IMPORTER
7. Makes payment
1.
4. Gives guarantee
8
FORFAITER
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10
BANK
60

EXPORTER
IMPORTER
7. Makes payment
4. Gives guarantee
1.
8. Presents documents for payment

BANK
FORFAITER
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10
61

EXPORTER
IMPORTER
7. Makes payment
4. Gives guarantee
9. Repays at maturity
1.

BANK
FORFAITER
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10
62

EXPORTER
IMPORTER
7. Makes payment
4. Gives guarantee
1.

BANK
FORFAITER
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10. Payment to the forfaiter
63

2
EXPORTER
IMPORTER
3
5
8
FORFAITER
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10
BANK
64
1. Commitment to purchase debt

4. Gives guarantee
7. Makes payment
10.Payment to the forfaiter
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VENTURE CAPITAL
VENTURE CAPITAL
The companies engaged in traditional line of
business can easily procure necessary financial
capital from the conventional capital market
sources like PUBLIC ISSUE, MUTUAL FUNDS,
LEASE FINANCING, DEBT INSTRUMENTS,
HIRE PURCHASE ETC.
But, entrepreneurs who engage in risky lines of
business have a great difficulty in mobilizing
capital.
The concept of venture capital came into
existence to help these entrepreneurs.
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WHAT IS VENTURE CAPITAL
Money provided by investors to startup firms and small

businesses with perceived long-term growth potential.
VC is a fund that is available for investment in an

enterprise which offers the probability of profit
along with the possibility of loss.
This is also called RISK CAPITAL.
The VC comprises two words i.e., Venture &
Capital. Venture is a course of proceeding
associated with risk whose outcome is uncertain.
The word capital here means the financial
resources to start an enterprise.
VC is the capital available for ventures associated
with new technology, products or processes
involving considerable amount of risk.
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This financing is commonly associated with the

equity investment for a time period in a
small/medium business with high growth
potential, high reward and risk.
THE MAIN FEATURES OF VC:
1. Investments are generally made in equity.
2. Investments are made in new enterprises, using
new technology, to produce new products, in
expectation of higher gains.
3. A VC investor maintains a close contact with an
entrepreneur to safeguard his investment but
does not interfere in the management of the
enterprise.
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4. Venture Capitalists approach differs from the

stock market investor and the banker. He
continuously keeps a close watch over
business.
5. VC investment is not liquid, A venture capitalist
cannot realize his money on demand. There is
no repayment schedule. The investment is lost
if the enterprise is unsuccessful.
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VENTURE CAPITAL FUND:

Which is also called as Venture Capital Institution.
It is a financial intermediary between investors
looking for high potential returns and entrepreneurs
who need institutional capital as they are yet not
ready to go the public.
The first step in the venture capital financing
decision is the selection of investment.
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The starting point of the evaluation

process by the Venture Capital Institution
(VCI) is the business plan of the venture
capital undertaking (promoter).
They should consider feasibility of the
project, project history, track record of the
entrepreneur, market potential, future
turnover, profitability and threats etc.,
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VC INVESTMENT PROCESS
Deal origination
Screening
Due diligence
(Evaluation)
Deal structuring
Post investment
activity
Exit plan
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STAGES OF FINANCING
1.EARLY STAGE
A. Seed Capital/pre-start capital

B. Start-up Capital
C. Second round financing
2.LATER STAGE
A. Development
Capital
B. Bridge/Expansion
Capital
C. Buyouts
D. Turnarounds
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A. Seed Capital/pre-start capital
This stage is essentially an applied research

phase where the concepts and ideas of
promoters constitute the basis of a precommercialization research project usually
expected to end in a prototype (trial product)
which may or may not lead to a business
launch.
This phase gradually moves towards the
development phase leading to a prototype
(model) product testing and then to
commercialization.
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The main risk at this stage is

marketing related. The risk perception
of investment at this stage is extremely
high.
Very few VCIs invest in the stage of
product development. This capital is
called as a seed capital
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B. Start-up Capital
It is a stage when product/service is

commercialized for the first time in association
with a VCI.
This is the stage when commercial manufacturing
has to commence. VC financing here is provided
for product development and initial marketing.
It includes several types of new products such as:
New business in which the company has good
knowledge and working experience.
New projects by established companies
A new company promoted by an existing company
with limited finance to commercialize new
technology.
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C. Second round financing
This is the stage at which the product has already

been launched in the market but the business
has not, yet become profitable enough for public
offering to attract new investors.
The promoter has invested his own funds but
further infusion of funds by the VCIs is necessary.
The VCIs provide larger funds at this stage than
the early-stage financing.
This financing is partly in the form of debt also
provided.
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2.LATER STAGE
This stage of VC financing involves established
businesses which require additional working
capital and for expansion of the business.
The risk and waiting period involved in this
stage are less. Venture capital funds can have
immediate income in the form of dividend or
capital gains.
The different sub-stages of the later stage are:
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A. Development Capital
It is the financing of established business which

require additional financial support but cannot
take resource to public issue.
This established businesses which have
overcome the extremely high-risk early stage,
have recorded profits for a few years but are yet
to reach a stage when they can go public and
raise money from the capital market
Under this, the VC finance is used to purchase
of new equipment/plant, expansion of marketing
and distribution facilities, re-finance of existing
debt, penetration has a time-frame of one to 3
years and falls in the medium risk category.
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B. Bridge/Expansion Capital
This finance by VCIs involves low risk
perception and a time-frame of 1 to 3 years.
Venture Capital undertakings use such finance
to expand business by way of growth of their
own productive asset or by the acquisition of
other firms/assets of other firms.
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C. Buyouts
Which implies transfer of management control. They
fall into two categories.
(i)Management Buy Outs (MBOs): In this VCIs provide
funds to enable the current operating
management/investors to acquire an existing
product (line)/business.
(ii) Management Buy Ins (MBIs) are funds provided to enable
an outside group {of manager(s)}to buy an ongoing company.
They brings 3 elements together: a management team; a target
company and an investor
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D. Turnarounds
Which involve buying the control of a sick

company.
Two kinds of inputs are required in this, they are
MONEY AND MANAGEMENT.
The VCIs have to identify good management
and operations leadership in this.
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BENEFITS OF VENTURE CAPITAL

TO THE ENTREPRENEUR:
Fills the gap in the owners fund in relation to the
quantum (a required or allowed amount, especially
an amount of money legally payable in damages) of
equity required in the launching of the new business.
Helps the enterprises to get their working capital
requirement.
Assists the entrepreneurs to recruit professionally
qualified and skilled personnel to carry out
production and management smoothly.
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BENEFITS TO THE INVESTORS

The risk of the new venture is borne by the VC
fund. The funds downloads their shares only
after profitable functioning of the companies.
Since the investors invest only after the
company starts earning profit, the risk is less
and it ensures a healthy growth of the capital
market.
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BENEFITS TO THE COMPANY

VC provides finance to explore vast (huge)
unutilized potentials and talents.
Promotes entrepreneurship and fosters
(encourage) the growth of entrepreneurs for
economic development.
Helps to attain industrial development.
Promotes technological development,
generates employment and helps the economy
to solve the problem of unemployment with
seed capital and term financing
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HISTORY
The concept of VC fund originated in US from
the year 1946.
The present day giants (big) like Apple,
Microsoft, McDonalds and Xerox are the
beneficiaries of the Venture Capital Funds. The
overall success of VC in the US encouraged
other countries to adopt the concept of VCF as
well.
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The growth of VC in India is of recent origin.

VC fund with initial capital of Rs.10 crore was
established by IDBI in the year 1985.
India was attracted to the benefits of Venture
Capital Funds for the promotion of high-tech
industries.
Technology Development and Information
Company of India (TDICI), a joint venture of
UTI, ICICI and IDBI provides early stage finance
to the projects in the form of seed capital.
Credit Capital Venture (India) Ltd., was set up in
the private sector in the year 1989.
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Risk Capital and Technology Finance

Corporation of India (RCTL) to fund projects
involving new technology is established by
Industrial Finance Corporation of India.
Financial assistance is given in the form of equity
participation.
IFCI venture capital funds ltd., is the new name
of RCTL.
Venture Capital Funds should register with SEBI
and adhere to its guidelines.
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Top cities attracting venture capital investments

CITIES
SECTORS
MUMBAI
Software services, BPO, Media, Computer graphics,

Animations, Finance & Banking
BANGALORE
All IP led companies, IT & ITES, Bio-technology
DELHI
Software services, ITES , Telecom
CHENNAI
IT , Telecom
HYDERABAD
IT & ITES, Pharmaceuticals
PUNE
Bio-technology, IT , BPO
CREDIT RATING
In the present competitive market, there are lot of
companies are in the market to raise money for their
business.
It is difficult for the investors to judge, whether an
investment is safe and reliable or not.
Therefore, to help the investors make a decision on
investments, the need for an independent and reliable
agency was felt to rate debt obligations of the companies.
Thus, credit rating agency came into existence.
Credit rating agency means a body corporate, which is
engaged in the business of rating of securities offer by
way of public or rights issue.
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According to Credit Rating Agencies

Regulations 1999, rating means:
An opinion regarding securities.
Expressed in the form of standard
symbols.
Assigned by a credit rating agency.
Used by an issuer of such securities.
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Ratings is expressed in alphabetical or

alphanumeric symbols on the basis of the
underlying credit quality of the debt instruments.
It does not recommend buying, holding or
selling and it is not based on audit.
It only assesses and gives opinion for a specific
purpose.
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HISTORY
1987 CRISIL was established
1991 ICRA was set up
1994 CARE came into existence
1996 - Duff and Phelps Credit Rating India ltd
was established.
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Credit Rating Information

Services of India Ltd
Investment and Credit
Rating Agency of India Ltd
Credit Analysis and
Research Ltd
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CLASSIFICATION OF CREDIT RATING

1. Debenture and Bond Rating: long term
instruments like debentures and bonds of
corporate bodies, government are rated by the
rating agencies.
Debenture rating is the primary and major
business of the credit rating agency.
DEBENTURE RATING
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2. Equity Rating: The rating of equities of the

companies is called equity grading.
Equity rating is very common to international
capital market.
At present, equity rating is undertaken by rating
agencies in India also.
Credit rating agency Crisil has assigned the highest (5/5)
grade to the proposed initial public offer (IPO) of Indias
largest commodity exchange, the Multi Commodity Exchange
(MCX). This grade indicates the IPOs fundamentals are
strong and reflects MCXs leadership in the commodity
futures market over the past four years, with around 82 per
cent share of the overall traded turnover.
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3. Fixed Deposit and Certificate of

Deposit rating: These are the
medium term instruments rated by the
rating agencies. The fixed deposit
provisions offered by the finance
companies and corporate bodies are
rated to ensure their safety and
security.
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HDFC Fixed deposit details

Deposits continued to grow during FY11. As
on March 31, 2011, outstanding deposits
stood at 24,625 crore. The depositor base
stood at approximately 9.67 lakh. CRISIL
and ICRA have for the sixteenth consecutive
year, reaffirmed their AAA rating for HDFCs
deposits. This rating represents highest
safety, attractive returns and perfect service
standards as regards timely repayment of
principal and interest.
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4. Commercial paper rating: This short-term

instrument is also rated by the agencies.
Reputed and high sound corporate bodies issue
commercial papers to the public and financial
institutions.
It has been made mandatory for the commercial
papers to get reviewed and rated by the rating
agency.
5. LPG/Kerosene dealers/firms rating: The
Ministry of petroleum and natural gas
recommended a mandatory evaluation of all
private companies selling LPG and kerosene.
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Rating certificates have to be taken from

CRISIL/CARE/ICRA.
It is made mandatory for the companies to
disclose their rating to the public.
6. Chit fund rating: it is not mandatory, some of
themselves get rated.
CRISIL rates chit funds incorporated as public
or private companies with a minimum net worth
Rs.5 Lakhs and an operating track record of 10
years.
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7.Real estate developers rating: This rating is for

a particular project and not for the company as
a whole.
Projects with approved plans and necessary
planning permits are taken up for rating.
CRISIL undertakes the rating of real estate
projects.
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ADVANTAGES OF CREDIT RATING

TO INVESTORS:
1.Assessment of credibility: Rating assesses the
strength and weakness of the company/debt
instrument on the basis of certain predetermined
factors.
It is beneficial to the investor to understand the
credibility of the issuing company.
2. Risk Indicator: all the investors may not possess
the required knowledge and information for credit
evaluation. In this context , investors can identify the
risk associated with them with the symbols assigned
to the instruments by the credit rating agency.
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3. Protects against bankruptcy: The financial

strength of the issuing company assessed through
credit rating.
High rating assigned to the debt security of a
company indicates a safe investment.
4. Easy to understand: The rating is given in the
form of symbols. Once the symbols are clearly
explained. It is easy to understand and use them.
5. Enables quick decisions: An investor can take
quick decision based upon the rating. There is no
need for him to study or know the fundamentals of
the company.
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6. Independent decision: the investor can build

his own portfolio without the help of the portfolio
managers by carefully watching upgrades and
downgrades of the credit rating.
7. Other services: The rating agencies conduct
research studies and provide industry reports,
seminars and open to analysts of the agencies
for discussion.
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ADVANTAGES TO COMPANY
1. Lowers the cost of borrowing: The higher rating
for safety provided by the rating agencies build the
investors confidence in the payment of principal
and Interest.
The issuing company can capitalize on this by
lowering the rate of interest.
2. Widens investor base: The opinions of the rating
agency build up investors confidence which could
enable the issuers to raise funds even in a slumped
market.
The rating itself is used as an advertising tool to
raise funds in various media.
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3. Induces self discipline: Rating requires the

disclosure of accounting system financial
reporting and management pattern (model).
This disclosure imposes self-discipline on the
functioning of the company.
4. Motivates growth: rating gives a feeling of
confidence and encourages the entrepreneurs to
undertake new projects and expand the existing
projects.
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RATING PROCESS
FACT FINDINGS
& ANALYSIS
RATING
STAGE
1. Rating
request
1. Collection of
information.
2. Assigning
rating team (2
members)
2. Meeting &
plant visits
1. Preview
meeting.
2. Rating
committee
meeting &
Rating
PRIMARY
STAGE
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3. Preparation
of reports
FINAL STAGE
1. Communication
& acceptance.
2. Surveillance
(observation)
112
CREDIT RATING AGENCIES IN INDIA

The major credit rating agencies in India are:
Credit Rating Information Services of India Ltd.
(CRISIL)
Investment and Credit Rating Agency of India Ltd.
(ICRA)
Credit Analysis and Research Ltd (CARE)
Duff and Phelps Credit Rating India (P) Ltd
(DPCRI)
Onida Individual Credit Rating Agency of India
(ONICRA)
Fitch Ratings India Private Ltd.
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Rating symbols for long-term debt instruments

Sl.No.
CRISIL
ICRA
CARE
SIGNIFICANCE
1.
AAA
LAAA
CARE AAA
Highest Safety
AA
LAA
CARE AA
High safety
3.
LA
CARE A
Adequate Safety
4.
BBB
LBBB
CARE BBB
Moderate safety
5.
BB
LBB
CARE BB
Inadequate safety
6.
LB
CARE B
Risk Prone
(Level)
7.
LC
CARE C
Substantial Risk
8.
LD
CARE D
Default
Long term debt instruments include Debentures, bonds and Preference

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shares
Rating symbols for medium-term debt instruments

Sl.No.
CRISIL
ICRA
CARE
SIGNIFICANCE
1.
FAAA
MAAA
CARE AAA
Highest Safety
FAA
MAA
CARE AA
High safety
3.
FA
MA
CARE A
Adequate Safety
4.
FB
MB
CARE BBB
Inadequate safety
5.
--
--
CARE BB
6.
--
--
CARE B
7.
FC
MC
CARE C
Risk Prone
(Level)
8.
FD
MD
CARE D
Default
medium term debt instruments include fixed deposits only.

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Rating symbols for short-term debt instruments

Sl.No.
CRISIL
ICRA
CARE
SIGNIFICANCE
1.
P1
A1
PR-1
Highest Safety
P2
A2
PR-2
High safety
3.
P3
A3
PR- 3
Adequate Safety
4.
P4
A4
PR-4
Risk Prone
(Level)
5.
P5
A5
PR-5
Default
SHORT term debt instruments include commercial papers only.
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IPO GRADING
The SEBI has made IPO grading
mandatory and the new norms has been
effective from 1 May, 2007. The five-point
grading scale as follows:
GRADE NO.
DETAILS
5
4
STRONG FUNDAMENTALS
3
2
AVERAGE FUNDAMENTALS
POOR FUNDAMENTALS
ABOVE-AVERAGE FUNDAMENTALS
BELOW-AVERAGE FUNDMENTALS
117
Once Again, Anti-Investor Move, To Revive Investor Sentiment!
How did the capital market regulator react to one of the worst years for the
primary market? By scrapping mandatory IPO (initial public offerings)
grading and making it voluntary! Chairman UK Sinhas public speeches
are about restoring investor confidence but he clearly does not know how
to do it. So, powerful companies and market intermediaries, once again,
used a depressed primary market to successfully lobby for a dilution of
investor protection measures. IPO grading was advocated by investor
activists and associations around 2003 and was reluctantly mandated by
the Securities and Exchange Board of India (SEBI) in 2007, only to be
dropped six years on.
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SEBIs excuse for scrapping mandatory grading is the

reported findings of various studies that a large
number of investors are not influenced by grades;
that plenty of low-grade IPOs received a big response
from retail and institutional investors and, thirdly, that
IPOs with high grades yielded more losses. In a clear
contradiction of these claims, media reports also say
that SEBIs action was a move to uplift the dormant
primary market. It is also unclear how SEBI rejected
yet another study which shows that, over time, IPOs
with higher grades yielded better price multiples.
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Indian institutions have scant regard for history, so SEBI did

not bother to consult investor associations who had fought
long and hard for IPO grading. Nor did it bother to examine
whether the grading process could be made more meaningful
or adequately publicised. Thanks to pressure from powerful
corporate lobbies, the IPO grading process was hobbled at the
very inception. Investor groups wanted IPO grading to be
independent and rating agencies to be paid from the large pool
of badly utilised investor protectionfunds with stock
exchanges and the ministry of corporate affairs. This did not
happen. Companies were paying for their own ratingleading
to charges about shoddy ratingsespecially when Indias top
rating agency, CRISIL gave Reliance Power a 5-star grade at
the peak of the bull run of January 2008.
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However, the grading did protect genuine investors, who

had no time, or ability, to wade through bulky
offer documents to find out what the companies wanted
to hide. The simple 5-point grade, based on an expert
evaluation of fundamentals by a rating agency, at least,
acted as a fact check, even if it did not cover price risk.
By making it voluntary, SEBI has effectively killed IPO
grading. But, instead of celebrating their victory,
companies and market intermediaries should be really
worried at the complete absence of protest. It shows that
the investor simply doesnt care and that is the real
reason why only three companies made a public
offering in 2013.
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CRISIL Limited
CRISIL House, Central Avenue
Hiranandani Business Park, Powai
Mumbai 400 076, Website: www.crisil.com
ICRA Limited
1105, Kailash Building, 11th Floor
26, Kasturba Gandhi Marg
New Delhi 110 001
Website: www.icra.in,
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Credit Analysis & Research Ltd. (CARE)

4th Floor, Godrej Coliseum
somaiya Hospital,Road
Behind Ev
erard Nagar
Off Eastern Express
Highway, Sion (E)
Mumbai 400 022
Website: www.careratings.com
Brickwork Ratings India Private Limited
3rd Floor, Raj Alkaa Park
29/3 & 32/2, Kalena Agrahara
Bannerghatta Road, Bangalore 560 076
Website: www.brickworkratings.in
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Fitch Ratings India Private Ltd.

Apeejay House, 6th Floor
3 Dinshaw Vachha Road,Churchgate
Mumbai 400 020
Website: www.fitchratings.com
SME Rating Agency of India Ltd. (SMERA)
Unit No. 102, 1st Floor, Sumer Plaza
Marol Maroshi Road, Marol
Andheri (East), Mumbai 400 059
Website: www.smera.in
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HIRE PURCHASE FINANCE

Hire purchase is a system of acquiring
goods on credit whereby the seller of the
goods is regarded as the dealer; the
purchaser is regarded as the hirer and the
financier as the owner.
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Under this transaction, the hire purchaser acquires

the property (goods) immediately on signing the
hire purchase agreement but the ownership or title
of the same is transferred only when the last
installment is paid.
The hire purchase system is regulated by the Hire
Purchase Act 1972. This Act defines a hire
purchase as an agreement under which goods
are let on hire and under which the hirer has an
option to purchase them in accordance with the
terms of the agreement and includes an
agreement under which:
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1) The owner delivers possession of goods

thereof to a person on condition that such
person pays the agreed amount in periodic
installments.
2) The property in the goods is to pass to
such person on the payment of the last of
such installments, and
3) Such person has a right to terminate the
agreement at any time before the property
so passes.
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Hire-purchase is commonly carried out in

the form of a triangular transaction. The
dealer/seller/vendor sells the goods to the
financier (usually finance or credit
company), which becomes the owner, in
return for an immediate payment, which is
the cash price less deposit paid by the
buyer/consumer, known as the hirer. The
owner then hires the goods to the hirer
under a hire-purchase agrement.
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Hire-Purchase Transaction
Dealer/seller
1. Hirer pays dealer deposit.
Owner/financier
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Hirer/
consumer
130
Dealer/seller
2. Owner pays dealer cash price

less deposit
Owner/financie
r
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Hirer/
consumer
131
Dealer/seller
3. Dealer delivers goods to Owner

2
Owner/financie
r
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Hirer/
consumer
132
Dealer/seller
3.Dealer delivers goods to

Owner or owner delivers
goods to Hirer
Owner/financie
r
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1
3
Hirer/
consumer
133
Dealer/seller
4. Owner hires goods to hirer

2
under HP agreement
Owner/financie
r
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Hirer/
consumer
134
Dealer/seller
5. Hirer pays installments to

owner under HP agreement 3
Owner/financie
r
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Hirer/
consumer
5
135
Hire purchase should be distinguished

from installment sale wherein property
passes to the purchaser with the
payment of the first installment. But in
case of HP (ownership remains with the
seller until the last installment is paid)
buyer gets ownership after paying the
last installment. HP also differs form
leasing.
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Difference between lease financing and hi

re purchase
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Types of Hire-Purchase
There are two types of hire-purchase:
1.Consumer Hire-Purchase
2. Industrial Hire-Purchase
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Consumer Hire-Purchase
This covers the financing of consumer
goods purchased for personal, family and
household purpose. Therefore, the hirer is
a natural person (not business) and the
goods are obtained for non-business
purposes.
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Industrial Hire-Purchase
Industrial hire-purchase refers to goods
purchased by companies for use in
business or industry.
Example: The purchase of a machine by a
company to be used in business.
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Features and benefits

1. The consumer can obtain a maximum of
90% financing.
2. The hirer becomes the owner of the
goods on settlement of the hire-purchase
facility.
3. The hirer can opt for early full settlement
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4. The hirer can terminate the agreement by

returning the goods but has to indemnify
the owner of any damages or losses
incurred in disposing of the asset.
Arrangements that different finance companies
have with dealers:
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Hire-purchase direct collection without

option (to the dealer)
This is a facility where the dealer introduces the
buyer of the vehicle to the financier. When the
facility is approved, the hirer pays the monthly
installments to the financier. If the hirer defaults, the
financier will have to repossess the vehicle.
Dealer/seller
Owner/financier
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Hirer/ consumer
143
Hire-purchase direct collection with

choice (to the dealer)
This is a facility where the dealer introduces the buyer of the

vehicle to the financier and guarantees repayment of the
facility. When the facility is approved, the hirer pays the
monthly installments to the financier. If the hirer defaults, the
financier will take action against the hirer and the dealer.
Dealer/seller
Owner/financier
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Hirer/ consumer
144
Hire-purchase scheduled collection

(by the dealer)
This is a facility where the dealer introduces the buyer
of the vehicle to the financier. When the facility is
approved, the dealer collects the monthly installments
on behalf of the financier. If the hirer defaults, the
dealer has to make the payment for the vehicle.
Dealer/seller
Owner/financier
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Hirer/ consumer
145
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146
1. Fraud
The dealers may, in collusion with the
supplier, present used or reconditioned
equipment for financing instead of new
equipment. The owner may only come to
know about it after repossession and will
have difficulty in disposing of it.
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The dealers might introduce fictitious

hirers. This can happen in scheduled
collection arrangements. The dealer can
create a fictitious hirers name and submit
forged documents to financier The
financier will pay the dealer for nonexistent goods. The dealer will use the
funds for his own purposes and dutifully
pay the monthly installments. The problem
will surface when the dealer defaults on
payment.
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2 .Other problems
Hire-purchase facilities are meant primarily for

movable goods. Goods affixed to the ground
(Land) would pose a problem. The National
Land Code defines land to include all things
attached to the earth or permanently fastened
to anything attached to the earth whether on
or below the surface. Therefore, a claim by
any party on the land will include the fixture
though financed by another party. Therefore, a
disclaimer from the landlord over the fixture
needs to be taken.
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Stolen goods like machinery are difficult

for the financier to ascertain. The financier
will also lose its right over the machinery.
This may not happen in cases where there
is a registration body, for example, The
hirer may not have insured the goods.
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Repossession
The financier may only repossess the
goods that is, take possession of goods
mentioned in a hire-purchase agreement
arising out of any breach of the agreement
relating to the payment of instalments,
where,
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(i) There had been two successive

defaults of payments (in the case of death
of heir, 4 successive defaults) or a default
of the last payment and the financier has
served on hirer a Notice of Intention to
Repossess; and
(ii) The period fixed by the Notice of
Intention to Repossess has expired, which
shall not be less than 21 days after the
service of the notice.
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Procedures involved during

the repossession
The Hire-Purchase Regulations 1967
provides the procedure for actual
repossession as follows:
(i) When taking the possession of goods to
be repossessed, the financiers officer,
before taking possession has to inform the
hirer the name and address of the financier
to which he or she belongs.
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(ii) If the financier sends his agent to

repossess the goods, then the agent has
to show the hirer an authority card issued
by the financier and his identity card.
(iii) An authority card must bear the
photograph, name and address of the
agent, the name and address of the
financier, the nature of appointment of
agent and the signature of the authorised
person of the financier.
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(iv) The financiers officer or agent also

has to show the hirer or the occupant of
the hirers premises, his identity card
before repossessing the goods.
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Procedures after the goods

has been repossessed
Where the financier takes possession of
the goods that were comprised in a hirepurchase agreement, the financier must
deliver to the hirer personally a document,
which shall set out
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(i) A short description of the goods and

(ii) The date on which the financier took
possession of the goods
(iii)The time at which the financier took
(iv)The place where the financier took
(v) The acknowledgment of receipt of the
goods.
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(vi) Where the hirer is not present at the

time of repossession, the financier must
send such document to the hirer
immediately after taking possession of the
goods.
(vii) Within 21 days after the financier has
taken possession of goods, the financier
must serve on the hirer and every
guarantor of the hirer a Notice to Hirer
under Section 16.
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(viii) If the notice is not served, the rights of

the financier under the hire-purchase
agreement will thereupon cease.
(ix) However, if the hirer exercises his or her
rights under the hire-purchase agreement
to recover the goods taken possession by
the financier, the notice is deemed to have
been duly served on the hirer.
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(x) Costs involved in the repossession will be borne

by the hirer:
1)The cost of repossession; and

2)The cost incidental of taking possession
and the cost of storage.
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In simple words, Lease is a financial

contract between the business customer
(user) and the equipment supplier
(normally owner) for using a particular
asset/equipment over a period of time
against the periodic payments called
Lease rentals.
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Lease generally involves two parties i.e.

the lessor (owner) and the lessee (user).
Under this arrangement, the lessor
transfers the right to use to the lessee in
return of the lease rentals agreed upon.
Lease agreement can be made flexible
enough to meet the financial requirements
of both the parties.
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EXAMPLE OF CAR LEASE
LESSEE
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LESSOR
164
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165
Difference between
Lease and Hire Purchase:
Ownership of the Asset: In lease, ownership
lies with the lessor. The lessee has the right to
use the equipment and does not have an
option to purchase.
Whereas in hire purchase, the hirer has the
option to purchase. The hirer becomes the
owner of the asset/equipment immediately
after the last installment is paid.
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Depreciation: In lease financing, the

depreciation is claimed as an expense in the
books of lessor.
On the other hand, the depreciation claim is
allowed to the hirer in case of hire purchase
transaction.
Rental Payments: The lease rentals cover the
cost of using an asset. Normally, it is derived
with the cost of an asset over the asset life.
In case of hire purchase, installment is inclusive
of the principal amount and the interest for the
time period the asset is utilized.
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Duration: Generally lease agreements are

done for longer duration and for bigger
assets like land, property etc.
Hire Purchase agreements are done mostly
for shorter duration and cheaper assets like
hiring a car, machinery etc.
Tax Impact: In lease agreement, the total
lease rentals are shown as expenditure by
the lessee.
In hire purchase, the hirer claims the
depreciation of asset as an expense.
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Repairs and Maintenance: Repairs and

maintenance of the asset in financial lease is the
responsibility of the lessee but, in operating lease,
it is the responsibility of the lessor.
In hire purchase, the responsibility lies with the
hirer.
Extent of Finance: Lease financing can be called
the complete financing option in which no down
payments are required but in case of hire
purchase, the normally 10 to 25 % margin money
is required to be paid upfront by the hirer.
Therefore, we call it a partial finance like loans etc.
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170
It can be defined as money, goods or services

provided to an individual in lieu of payment
Consumer Credit includes all asset-based
financing plans offered to primarily individuals to
acquire durable consumer goods.
Typically, in a consumer credit transaction, the
individual-consumer-buyer pays a fraction of the
cash purchase price at the time of the delivery of
the asset and pays the balance with interest over
a specified period of time.
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From a modest beginning in the early eighties, the

consumer credit has emerged as an important
asset-based financial service in India.
The main suppliers of consumer credit are
foreign/multi-national banks, commercial banks
and finance companies and cover items such as
CARS, SCOOTERS, VCRs, VCPs, TVs,
REFRIGERATORS, WASHING MACHINES,
HOME APPLIANCES, PERSONAL COMPUTERS,
FOOD PROCESSORS AND SO ON..
Common forms of consumer credit include credit
cards, Auto finance, Personal Loans, Mortgages.
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THE MAIN FEATURES

1. Parties to the transaction
2. Structure of the transaction
3. Mode of payment
4. Repayment period and rate of interest and
5.
Security.
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Parties to the transaction
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174
The parties to a consumer credit

transaction depend upon the nature of the
transaction.
In first category, there are two parties,
namely borrower-consumer-customer and
dealer-cum-financier.
In second category, where the parties are
dealer, financier and the customer
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176
Hire-Purchase: The customer has the option to

purchase the assets. But he may not exercise the
option and return the goods according to the terms
of the agreement.
Conditional Sale: The ownership is not
transferred to the customer until the total purchase
price including the credit charge is paid. The
customer cannot terminate the agreement before
the payment of the full price.
Credit Sale: the ownership is transferred to the
customer on payment of the first installment. He
cannot cancel the agreement.
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MODE OF PAYMENT
From the point of view of payment, the consumer
credit arrangements falls into two groups.
1. Down Payment Schemes: The down payment may
range between 20-25% of the cost.
2. Deposit-linked Schemes: The deposit may vary
between 15-25% of the amount financed at
compound rate of interest. Some arrangements
also provide zero deposit schemes with higher
Equated Monthly Installment (EMI)
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Payment Period and Rate of Interest

A wide range of options are available.
Typically, the repayment period ranges
between 12-60 monthly installments. The
rate of interest is normally expressed at flat
rate, the effective rate of interest is generally
not disclosed.
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In some schemes, the rate of interest is not

disclosed, instead the EMI associated with
the different repayment period is mentioned.
most of the schemes provide for easy
repayment. They also provide for either a
rebate for prompt payment and charge for
delayed payment.
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security
Security is generally in the form of a first
charge on the asset. The consumer
cannot sell/pledge/hypothecate the asset.
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Demand for consumer

finance(Factors)
Increase in consumer disposable income

Enhancement in real income of consumer
Convenient size of installment payment
Growth in nuclear families leading to
number of house holds
Lower charges
Down payment and credit contract
Advantages of Consumer
Credit(Finance)
Enjoying position : An important benefit of consumer
credit is that it allows people to enjoy possession of
goods without having to pay for them immediately.
Saving : consumer credit allows for a mechanism of
compulsory saving this induces people to use their
income wisely and promotes thrift among people.
Convenient mode : Consumer credit offers a convenient
mode of acquiring consumer durables.
Meeting emergency : Consumer credit is useful in
meeting emergencies such as illness, accident and
death which involve unexpected expenses.
Maximization of revenues: Consumer credit

facilitates speedy disposal of goods which would
have remained unsold in the absence of credit
facility to consumers. This helps in increased sales
and profits through credit sales.
Accelerates industrial investment: Consumer credit
accelerates investment in consumer durable
industry giving rise to growing level of income and
employment.
Enhanced living standard : consumer credit
enables people of limited means to acquire goods
to enhance their general standard of living.
Promoting Economic development :

Consumer credit promotes higher levels of
investment, employment and income thus
raising the effective demand and promoting
higher standard of growth and
development.
Disadvantages of Consumer
Finance
Thoughtless buying : consumer credit being
attractive tempts people to buy goods
indiscriminately even if they are not needed.
Insolvency : Credit forces people to mortgage a
substantial portion of their fixed future income which
may lead to insolvency and bad debts.
Costly Credit : Consumer credit with its benefit of
convenient buying brings with it severe consequence
of costliness of credit because the effective rate of
interest is much higher than on paper.
Risk to traders : Consumer Credit posses

considerable risk to traders because if the buyer
defaults on payment the lender can acquire the
good but cannot sell it at the original price.
Artificial Boom: Consumer credit creates artificial
boom in consumer durable industry.
Bad Debt : Consumer credit generates a substantial
amount of revenue for traders but there is a high
risk of bad debt.
Economic instability: Indiscriminate consumer credit
leads to economic instability because of recurrence
of booms and slumps. In boom there is credit
extension and in recession there is credit tightening.
THANK YOU ..
11/27/15
188

4 Unit Asset &amp; Fund Based Financial Services

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ASSET & FUND BASED

There are many traditional methods such as

Factoring is a continuing arrangement

Besides purchase of accounts

Factoring is a collection and finance service

In the UK, factoring came into

The factor provides prepayment up to 80% of the invoice

1. Customer place an order

with the client for goods

2. Client send invoices to factor.

Factoring companies in India:

Canbank Factors Limited: http://www.canbankfactors.com

SBI Factors and Commercial Services Pvt. Ltd: http://www.sbifactors.com

The Hongkong and Shanghai Banking Corporation

Foremost Factors Limited: http://www.foremostfactors.net

Global Trade Finance Limited: http://www.gtfindia.com

Export Credit Guarantee Corporation of India

Small Industries Development Bank of India

Standard Chartered Bank: www.standardchartered.co.in

Both these charges taken together

The client is free from the tensions of monitoring his

Benefits to customers (Buyers)

Customers are furnished with

International Factoring facilitates International Trade.

It is a comprehensive (complete) range of receivables management

Export receivables that can be factored should have the

INTERNATIONAL FACTORING TRANSACTION

INTERNATIONAL FACTORING TRANSACTION

Receives the order

INTERNATIONAL FACTORING TRANSACTION

Receives the order

2 Credit limit request

2 Credit limit request

INTERNATIONAL FACTORING TRANSACTION

Receives the order

2 Credit limit request

2 Credit limit request

INTERNATIONAL FACTORING TRANSACTION

Receives the order

2. Credit limit request

2 Credit limit request

INTERNATIONAL FACTORING TRANSACTION

Receives the order

2. Credit limit request

2 Credit limit request

INTERNATIONAL FACTORING TRANSACTION

Receives the order

2. Credit limit request

2 Credit limit request

INTERNATIONAL FACTORING TRANSACTION

Receives the order

2. Credit limit request

INTERNATIONAL FACTORING TRANSACTION

Receives the order

2. Credit limit request

INTERNATIONAL FACTORING TRANSACTION

Receives the order

2. Credit limit request

INTERNATIONAL FACTORING TRANSACTION

Receives the order

2. Credit limit request

INTERNATIONAL FACTORING TRANSACTION

Receives the order

4 Unit Asset & Fund Based Financial Services

4 Unit Asset & Fund Based Financial Services