Factoring
FACTORING AND RECEIVABLES FINANCE
CAPITAL YONO assists eligible businesses in evaluating factoring arrangements against genuine and eligible receivables. An approved factor may provide an advance, receivable administration and collection support according to the facility contract. This can help businesses manage the interval between sale and buyer payment.
Funding Terms
- Generally 70% to 90% of eligible invoice value. Indicative financing or discounting rate is 9% to 18% p.a., with a separate case-specific factoring or service fee where applicable. Tenor is generally 30 to 180 days; initial processing is approximately 5 to 15 working days.
Who May Enquire
Who may enquire
- Established B2B sellers with genuine, undisputed receivables, acceptable debtor profiles and satisfactory compliance, banking and bureau conduct. A specific domestic corporate buyer route may require buyer turnover above ₹250 crore; that is not a universal factoring rule.
Documents to Keep Ready
Documents to keep ready
- Seller KYC, GST, financials and bank details; debtor list and ageing; buyer details; contract or PO; invoices and delivery or completion evidence; acceptance and payment terms; existing charge or assignment information.
How It Works
How it works
Review the seller, debtor and receivable; identify an approved factor and recourse structure; complete assignment and documentation; receive the approved advance; collect or settle under the signed facility.
Frequently Asked Questions
What does with recourse mean?
The seller remains liable under the facility if the buyer fails to pay.
What does without recourse mean?
The factor may assume approved buyer credit risk within contract terms. Disputes, fraud, ineligible invoices and contractual exceptions may remain the seller responsibility.
Is factoring the same as invoice discounting?
Both can finance receivables; factoring may also include assignment, administration and collection services according to the contract.
Discuss Your Funding Requirement
Related products
Discuss Factoring
All funding, rates, fees, advance percentages, tenure, security, recourse and timelines are indicative and depend on the financier, buyer and seller profile, transaction quality, available limits, documentation, appraisal and approval. CAPITAL YONO facilitates preliminary assessment and coordination; sanction and disbursement are not guaranteed.
Funding is subject to eligibility, appraisal, due diligence, approval and final terms from the relevant funding provider.