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    FACTORING

    You have supplied goods or services to a reputed Buyer as per agreed quantity, quality standards and timelines. The Buyer will pay you only after a certain credit period. However, you would prefer to get these receivables early and reduce your working capital cycle and credit risk. We help you unlock these receivables by assigning them to an appropriate Financier, enabling early liquidity and improving your cash cycle.

    Understanding Mynd Fintech Factoring

    We understand the importance of maintaining a solid cash flow for the growth and success of your business. Our Factoring service offers a solution by providing immediate funding through a financer who provides credit for your accounts receivable. This efficient and flexible method eliminates the need for traditional bank loans while extending credit protection and professional collections management to your business.

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    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

    FAQs 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.