What is Factoring? How is it different from Sales bill discounting? Supply chain finance

MSME units wants quick payments from their debtors for better working capital management. So how factoring limit helps in achieving this for the MSME borrower? The factoring limit is part of supply chain finance which contains many products like Sales bill discounting, dealer finance, factoring, reverse factoring, export factoring, payable finance etc.
Through this video, We shall understand:
1. What is factoring loan? How the factoring limit actually works?
2. How factoring is different from sales bill discounting or vendor bill discounting facility
3. What are different type of factoring?
4. What is recourse on seller in factoring facility?
5. What are benefits of factoring.
#factoring #reversefactoring #billdiscounting #salesbilldiscounting #vendorbilldiscounting #typesoffactoring #ankushjain #caankushjain #workingcapital #msme #msmefinance #msmebusinessideas #smeloan #smesector #sme
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[@sonupal-pv2qk]

Thank you sir for a new concept video knowledgeable

[@AnkushJain]

Your welcome

[@SANTOSHKUMAR-pb2lb]

I believe factoring is comparatively riskier preposition than sales bill discounting for banks and as you mentioned that there is no much cost difference in both than why the bank is resorting to factoring services

[@AnkushJain]

@@SANTOSHKUMAR-pb2lb it's a better in terms of conversions as sellers are more willing to take factoring as compared to sales bill discounting

[@yolopug3889]

sir is Sales Invoice Financing (SIF) the same as Invoice Factoring?

[@AnkushJain]

@@yolopug3889 yeah

[@ramugehlot1274]

Thank you sir❤❤❤❤❤

[@AnkushJain]

Your welcome

[@CAMOIN9945]

what if facility is taken by the buyer on behalf of supplier. further why it will be part of MPBF

[@AnkushJain]

Then it is called reverse factoring

[@CAMOIN9945]

@@AnkushJain Sir in thread you commented that it will be part of MPBF. In my case the bank has sanctioned the limit without margin. so is it considered in MPBF or not

[@debashish1096]

What is the difference between sales bill discounting and purchase bill discounting? in case of sales bill discounting seller submits its bills and then bank discounts the bills and credit the proceeds to his account but In case of purchase bill discounting, what is the scenario??? kindly answer sir.

[@AnkushJain]

Pl watch my latest reverse factoring video

[@KeertiTripathi-dk9pq]

Hello sir I want to join banks as I am a newly qualified chartered accountants.no Idea how can I get a job for credit manager.

[@AnkushJain]

Best way is through internal reference only..

[@KeertiTripathi-dk9pq]

There is no internal reference sir

[@lsinghal1649]

In practical scenario can you give some examples who does provide this kind of factoring service in market to sellers/msme

[@AnkushJain]

All banks like HDFC, kotak, icici, standard chartered, Citi Bank, deutsche etcm

[@lokeshdange9492]

There are some good factoring companies as well. I have heard Credlix provides very good service.

[@KeertiTripathi-dk9pq]

I submitted my resume on bank career but no response

[@AnkushJain]

Best way is internal reference

[@VaibhavNivendkar]

How to become a member to watch industry specific funding?

[@AnkushJain]

Hi vaibhav Pl watch the steps in this short video kzbin.infoGUsQ-4ICdFs?feature=share

[@sanjeevmishra2511]

Please make a video on Consortium banking, security trustee and LLC

[@AnkushJain]

Already made on consortium. Pl check members section

[@AnkushJain]

Already made on consortium. Pl check members section

[@DeepakKumar-wp6fr]

Kindly upload case study of term loan and working capital for a new manufacturing of gly ash bricks for set up shed, machine and cash credit with loan process note

[@AnkushJain]

👍👍

[@vinaymehta6242]

Few queries 1. Pricing of seller discounting or factoring which us more higher based on risk? 2. CIBIL will reflect factoring in buyer and in case of non payment , derog would be in whise CIBIL? 3. During assessment; whther it shall be part of MPBF? In balance sheet it shall be contingent liability?

[@AnkushJain]

1. Factoring would have comparatively higher pricing ideally bcz of higher risk as recourse is limited but I have confirmed from banks that there is not much diff. 2. SMA reporting of buyer is done 3. During MPBF, it is to be counted as working capital finance in projections

[@soumitsaha2774]

​@@AnkushJainIn case of delay, as bureau of buyer is getting impacted then why would be buyers be interested in such facility? Here buyers are having more bargaining power than suppliers.

[@harshverdhansaxena9166]

Sir this facility is only applicable for large corporates right?

[@AnkushJain]

Buyer must be a good corporate