Factoring

Ajit Jain owns an IT Industry named ‘Info-Solution Pvt Ltd’ situated in Pune. His Previous year Net Profit is Rs.9.2 Cr. He is running this business for the last 10 years. i.e. From 2011. His business is leading to IT Services and is earning a huge profit. Since he always faces a working capital crunch, he constantly needs funds for running his company efficiently. He has recently provided software services of Rs.20 lakhs to a renowned Company and has accepted the credit period of 60 days. Meanwhile, he has received another order for which he is in lack of funds. The new order is amounting Rs.12 lakhs which is again quite a huge order.

Company Name Info-Solution Pvt Ltd
Commencement Year 2011
Turnover Rs 9.5 Cr
Mortgage available None
Industry Type Service Industry

After analyzing the company’s balance sheet, he came across that company does not have any asset which can be given as collateral and hence helpless for secured funding. He is confused and unable to decide the exact way for funding. While discussing with one of his friends, he came across Terkar Capital which is one of the best funding solutions in Pune, Mumbai, and across India. And soon he fixed meeting with us.

Our team of experts examined the case and asked for companies’ financial statements. After studying the financials, we came to the conclusion to provide Factoring to his company. The balance sheet had no asset for collateral but showed heavy Account Receivables i.e. more than the required amount. Mr. Ajit was unaware of the concept of finance like Factoring and was contented after getting assistance.

Factoring is the financial instrument or debtor finance in which the seller sells its accounts receivable to a third party called ‘factor’ at a discount. There are three parties involved in such transactions: customer, debtor, and the factoring company. In simple words, it is the selling of unpaid invoices for the requirement of instant cash.

Financial Instrument Factoring
Total time for execution 3-4 days
Amount Disbursed immediately

80-90% of the invoice amount

(depends upon credit score)

Lock-in period (credit period)   60 days
ROI 5-15%
Company ratings for services 4.5/5

(Note- The ROI varies as per the market conditions)

We chose the best suitable Lender (Factoring Company) and forwarded the required documents of the customer towards them. Soon, they transferred 85% of the invoice value as their debtor was creditworthy. After said credit period the debtor executed the payment and Mr. Ajit received a remaining amount less their discount/fees. Although there are discounting charges/fees for factoring, they provide around 80-90% of the cash instantly. The amount totally depends upon the creditworthiness of the debtor as he will be the responsible person for payment at maturity.

Once the proposal was put by the borrower we executed it thoroughly. Our team of expert arranges a suitable funding option for you and executes the process effortlessly. Since then, Mr. Ajit approached for all his funding from us.

If you are looking for reliable and hassle-free funding solutions, Terkar Capital can be the perfect place for you. We have expertise in the analysis of the market and offer the cheapest ROI to borrowers. Factoring is one of our best services and organizes every step of the way. If you are looking for Factoring, Terkar Capital is the place to be! 

For More Details Please contact our Experts

If you have any questions, please do not hesitate to ask us. Please also call us or email us before visiting to make sure that you will be served with our best services.

  8308629820 / 8262831330
  yes@terkarcapital.com