Every business activity must ultimately result in a sale. But for the sale to happen you must first have the goods ready. To get the goods ready for shipment to the buyer you need to buy the raw materials, do the value addition which is your speciality, and pack the same. Many a times it needs more time to get the whole consignment ready and you cannot get adequate credit for the suppliers or you may get a better margin if you can avail of the cash discounts. To do that you need money. One of the ways to get credit from your suppliers, and your supplier still getting the cash upfront is to go for a reverse factoring. In reverse factoring, the bank will pay your supplier upfront the amounts due to them from you and you can pay back the bank in due course of time. So your small suppliers whose papers do not justify credit facilities from their bank can also avail of this facility as these are based on your strength and not his. Further more as this is an unsecured facility, neither of you have to provide any collateral. This is a great way of augmenting additional credits.
We can arrange for reverse factoring facilities at most competitive rates of interest.