Benefits to Buyers

UNINTERRUPTED SUPPLIES TO THE BUYER:

Availability of Factoring to the Client (Seller) ensures continuous supplies to the buyer for his uninterrupted production. The buyer need not go through the cumbersome process of opening LCs or incur additional costs for the same.

AUTOMATIC REVOLVING LINE:

Factoring limit sanctioned in respect of every buyer gets automatically renewed on receipt of payment from the buyer on the due date. Thus, it is a revolving facility and can be turned around 4-6 times in a year.

BETTER CASH FLOW MANAGEMENT:

Buyer gets the benefit of extended credit period which facilitates a smooth cash flow management.

STRENGTHENED BUYER-SELLER RELATIONSHIP:

The flexible mode of cash availability offered by SBIGFL against receivables eases the liquidity position, boosts up the purchasing power and thus strengtheneds the relationship between the buyer and seller.
Quality buyers with strong financials can rope in their various sellers (who are small players in the market) and arrange for them Vendor Factoring Facility.

FLEXIBLE PURCHASE TERMS:

Seller’s improved cash flow puts him on a stronger footing to offer better terms of trade to the buyer.