| Bank Name | Maximum Loan Amount |
|---|
| Bank Name | Min Interest Rate | Processing Fee | Max Loan (Lacs) | Max Tenure (Month) | Chances of Loan Approval | |
|---|---|---|---|---|---|---|
SBI Global Factors Limited
|
10% | 1% | 1500 | 6 |
|
|
India Factoring
|
11% | 1% | 1500 | 6 |
|
|
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IFCI Limited
|
10% | 1% | 1500 | 6 |
|
|
Kredx
|
16% | 1% | 1500 | 6 |
|
|
Many of you have question, what is factoring in finance? Factoring & finance is a facility which you the accessibility of liquidity against your pending account receivable. It clears your blockage of working capital & aid to have a smooth cash flow.
Factoring Finance Eligibility CriteriaEligibility Criteria depends on several factors like repayment history, business sales/turnover& Creditworthiness ...etc.
Note: - You can get minimum 10 lakh to maximum 1 Cr as a loan amount.
What are the factors generally affecting Factoring Finance Eligibility Criteria?There are top factors that generally affects Factoring Finance eligibility criteria as given below: -
Low business ventage- Lender check years of business continuity as to measure the creditworthiness of company existing performance. Generally, for availing this type of facility 3 year of business continuity required. Due to low business ventage your chances get lowered.
NIL Collateral- If you have low credit score range, then collateral is the essential way to fulfil the requirements, in case you don’t own any collateral/assets to pledge then most probably lender won’t approve your application due to high risk in applicant profile.
What are the ways to increase Factoring Finance eligibility?To increase eligibility, you need to consider Top points as given below, this will aid you in increasing your eligibility level.
Maintain proper credit report: - By maintaining credit report you can be able to enjoy benefits like negotiating interest rates, easy approval of credit & loan. Just you are required to pay bills on time as it aids to increase credit score as well as eligibility.
Clear existing debt before opting for new: - Lender look forward to your application whether you have any existing loan, paying interest for earlier loan will affect new loan application. Hence, try to clear it as much as possible
PHOTOGRAPHS 2
PAN CARD COPY
AADHAR CARD + PASSPORT
ADDRESS PROOF IF RENTED ALSO REQUIRED PERMANENT ADDRESS PROOF
LAST 3 YEARS FORM -16, ITR WITH COMPUTATION OF INCOME IF FILE
LAST 1 YEAR BANK STATEMENT - SALARY ACCOUNT
LOAN SCHEDULE & SANCTION LETTER (IF RUNNING)
COMPLETE PROPERTY PAPERS WITH CHAIN & MAP +ATS
PROCESSING FEE CHEQUE IN FAVOUR OF BANK
LAST 3 MONTHS SALARY SLIP + APPOINTMENT LETTER
PHOTOGRAPH BOTH
PAN CARD CLEAR COPY PROPRIETOR
ADDRESS PROOF (PASS PORT, VOTER ID CARD) PROPRIETOR
OFFICE ADDRESS PROOF LATEST (ELECTRICITY BILL, TELEPHONE BILL)
FIRM REGISTRATION CERTIFICATES & GST REGISTRATION COPY
LAST 1 YEAR GST RETURN COPY
FIRM 3 YEARS ITR COMPUTATION, PROFIT LOSS A/C, BALANCE-SHEET, TAX AUDIT REPORT, ALL SCHEDULED & ANNEXURE
PROVISIONAL FINANCIAL AY 2019-20
BANK ACCOUNTS (CURRENT ACCOUNT, CC ACCOUNT, OD ACCOUNT LAST 1 YEAR UPDATED)
6 MONTH SAVING ACCOUNT STATEMENT UPDATED (PROPRIETOR)
IF RUNNING ANY LOAN PLEASE PROVIDE SANCTION LETTER AND REPAYMENT SCHEDULED
AGREEMENT TO SELL COPY
PROPERTY PAPERS WITH CHAIN SANCTION MAP
PHOTOGRAPH PARTNERS
PAN CARD - COMPANY, ALL PARTNERS
ADDRESS PROOF - ALL PARTNERS (PASS PORT, VOTER I CARD ,PAN ,ADHAAR)
FIRM ADDRESS PROOF- LATEST ANY UTILITY BILL
PARTNERSHIP DEED COPY
GST CERTIFICATE
3 YEAR COMPANY ITR COI P/L A/C BALANCESHEET + AUDIT REPORT 3CB 3CD, ALL ANNEXXURS, SCHEDULED WITH CACERTIFIED
PROVISIONAL FINANCIAL AY 2019-20
3 YEARALL PARTNER INDIVIDUALS ITR + COMPUTATION
FIRM ALL A/C BANK STATEMENT 1 YEAR UPDATED
ALL PARTNER SAVING A/C STATEMENT 6 MONTH
IF RUNNING ANY LOAN – LATEST SANCTION LETTER + TRACK RECORDS OR REPAYMENT SCHEDULED
AGREEMENT TO SELL COPY
PROPERTY PAPERS COMPLETE CHAIN WITH MAP
ALL DIRECTORS PHOTOGRAPH
CLEAR PAN CARD - COMPANY AND ALL DIRECTORS
ADDRESS PROOF – COMPANY AND DIRECTORS
LIST OF DIRECTOR& SHARE HOLDER WITH CA CERTIFIED AS ON DATE
MEMORANDOM ORDER IN HAND AND COMPLETE COPY (IF APPLICABLE)
GST, SALE, VAT AND SSI REGISTRATION CERTIFICATE
1 YEAR GST RETURNS
ALL DIRECTORS INDIVIDUALS ITR & COMPUTATION LAST 3 YEARS
LAST 3 YEARS COMPLETE FINANCIAL WITH TAX AUDIT REPORT AND ANNEXURE
PROVISIONAL FINANCIAL FY 2019-20 OR MONTH WISE SALE FIGURE LAST 1 YEAR
COMPANY ALL BANK ACCOUNT STATEMENT 1 YEAR UPDATED
ALL DIRECTORS SAVING A/C STATEMENT 6 MONTH
IF RUNNING ANY LOAN – LATEST SANCTION LETTER AND REPAYMENT SCHEDULED
AGREEMENT TO SELL COPY
PROPERTY PAPERS COMPLETE CHAIN WITH SANCTION MAP
Frequently asked questions (FAQ) pages are Q&A-style pages that most brands build to answer queries that slip through the cracks. FAQs are targeted to give a complete sense of query satisfaction to the client.
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Yes, there are various NBFC's too providing Factoring in Finance but majorly compared to many terms Government or Private Banks are far better to avail loan.
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Yes, Multiple NBFC’s provide loan for business expansion & for their management system through financial support.
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Boost your business liquidity through the help of Factoring Finance, it removes financial blockage & enhance working capital. Just transfer your receviables to get funded quickly.
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To know your eligibility, you need to check the common eligibility criteria of Factoring Finance: -
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Usually, Lender impose an fee for processing loan applications which would be 0.50% - 2% of total loan amount vary from banks to banks.
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For getting Factoring Finance you must have credit score above 750 as much as the higher credit score is that much possibility of getting loan increase with that it also provides you the benefit to negotiate better rates & terms.
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This type of facility comes under unsecured category which give you the relaxation of not pledging Collateral/Assets to get loan not only that due to its a short-term loan it won’t give you the tense of more documentation with that online application is also available.
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There are various factors that determine maximum loan amount, in case-to-case things get varied.
CA Vikas Jain - Our Mentor
9863-02-02-02