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What is Factoring in Finance?

Factoring and Bill Discounting

A small business often supplies the goods or services to its customers on credit. It increases receivables for the business and creates hindrances in smooth cash flow. The result is a shortage of cash due to liquidity strapped in accounts receivable, etc. This may affect other operations like wage payment, purchase of inventory, and more.

Free up your business’ blocked working capital by factoring your receivables to Bajaj Finserv. Here’s another explanation to what is factoring in finance. You can meet all immediate funding requirements by transferring your receivables’ ownership to us and bridge the funding gap. Transfer the risk of non-payment of receivables to us through factoring without recourse and meet all immediate financing needs. Enjoy risk-free recourse to bridge all working capital requirements.

Bajaj Finserv’s factoring or receivable financing gives you access to a large amount of money that can easily help overcome any cash crunch. Conveniently avail the factoring solutions by providing essential documents like identity proof, address proof, proof of income, etc.

Alternatively, avail high-value Loan Against Property of up to Rs. 3.5 crore from Bajaj Finserv by mortgaging your property. With quick and easy application procedure, it is a viable financing option giving you access to funds within 4 days from the date of approval.

Both factoring and bill discounting make funding convenient. However, invoice factoring financing takes care of the sales ledger by tracking and recovering all sales transactions. Transfer the responsibility as well as interest in debts and accounts receivable to Bajaj Finserv. It comes with affordable interest rates, thus, making repayment easy and convenient.

Now when you know what is factoring in finance, bill discounting comes as another efficient financing option. It lets you clear any unpaid invoices like –

  • Purchase of raw material
  • Sundry purchases and more through invoice financing.

It comes with a convenient tenure of repayment through invoice recovery.

While both the options offer instant finance to meet working capital needs, Bajaj Finserv’s Loan Against Property brings a large sum of money for core capital funding requirements.

Additional Read: Who Can Be The Co-Applicant For A Loan Against Property?

An individual willing to start a business can also arrange seed capital for the same by mortgaging a property.

Also Read: How to get a Secured Business Loan

It brings along benefits like –

  • Long repayment tenure of up to 20 years helps pay off the borrowed amount in easy EMIs.
  • Along with the convenient balance transfer facility, you get access to a high-value top-up loan with minimal documentation.
  • Affordable loan against property interest rate lower the cost of borrowing.
  • You can use the funds to consolidate small debts into one and increase your credit profile gradually.
  • Facilities like foreclosure and part-prepayment help save on interest payment. Choose to foreclose the account with lump sum amount or part-prepay during the tenure at minimal charges.

Know your monthly outflow in advance with the help of Loan Against Property EMI Calculator and plan your finances accordingly. Bajaj Finserv ensures minimum risks and maximum advantages with this borrower-friendly secured loan.

Bajaj Finserv facilitates the management of your loan account from anywhere 24x7 using the customer portal Experia.