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Need for Factoring
Invoice factoring essential financial solution to address critical challenges in supply chain finance. Suppliers often grapple with delayed payments, working capital shortages, and high operational costs which can hinder their growth. Buyers , on the other hand, struggle with cash flow management. Factoring provide a vital solution by converting unpaid invoices into immediate liquidity. This not only bridges cash flow gaps, but also enabling suppliers to reinvest in operations and ensures smoother financial management across the supply chain.
Growth with Mynd Fintech’s Invoice Factoring Solutions
At Mynd Fintech, our Factoring services are designed to provide businesses with immediate liquidity by converting their outstanding invoices into cash. With a focus on Accounts Receivable management, we empower businesses to maintain steady cash flow, reduce financial strain, and focus on growth without waiting for customer payments.
Features:
Unsecured Line of Credit offered to Sellers for sale to reputed Buyers- Avoids any loan agreement
- Technology integration with Corporate’s ERP OR use of Mynd Portal for seamless flow of invoice information across the Corporate, Debtor, Mynd and the Lender
How it Works
01
One Time Credit Limit Set-up
- Limit amount and credit period finalized basis risk assessment of Buyer
- Digital on-boarding of the Seller and Buyer
- One-time Notice of Assignment signed by Seller and accepted by the Buyer
02
Digital flow of Buyer confirmed invoices
- Integration with Corporate’s ERP for online invoice flow
- System for uploading digitally signed invoices, if ERP integration is unavailable
03
Online Disbursement
- Buyer confirmed invoices funded within 24 hours
- Disbursement done in Seller’s designated bank account
- Limits revised post each disbursement
04
Online Repayment before due date
- Flexibility for Anchor to pay Lender anytime prior to due date
- NACH presented on the due date for payment from Anchor to the Lender
- Limits get replenished after every payment
Benefits of Factoring
- Access to new and profitable lending opportunities with little or no investment
- Funding of a confirmed end-purpose
- Digital and standardized underwriting process
- Easy to scale-up
- Access to early liquidity against goods and services provided to Buyer
- De-risking of receivables
- Off-balance sheet funding
- Healthier Supply Chain
- Additional lever to negotiate down procurement prices
- Higher stickiness of Sellers
Frequently Asked Questions
Factoring is the practice of using company’s unpaid invoices to raise working capital & fulfil its financial needs. Financial institutions including Banks and NBFC Factors provide discounting services for businesses.
We offer Factoring to all Businesses registered as Proprietorship, Partnership, Private Limited, Limited Liability Partnership and Public Limited Companies.
The financing disbursement is done by the Lender to the designated Bank account of the Seller within 24 hours, as per the process agreed.
Repayment is made by the Buyer to the respective Lender any time before the end of the credit period. The credit period for each invoice ranges between 30 to 120 days, as per terms agreed with the Buyer. The interest is charged only for the actual period for which credit was used.
Using auto debit facility via NACH.
There is usually no additional collateral required, as our Lending Partners provide this facility on the strength of the respective Buyer and the assessment of cash flows due within the cycle. However, in some case lenders may request for collateral based on their assessment of the risks involved.