Welcome to the SBI Global Factoring Blog

For MSME (Micro, Small, and Medium Enterprises) units, managing working capital effectively is crucial for business growth. Delays in receiving payments from debtors can impact cash flow, creating operational challenges. Two popular financing solutions that address this issue are factoring and bill discounting. In this blog, we will explore these financial tools, their differences, types, and benefits, helping MSMEs manage cash flow efficiently.

In today's fast-paced business environment, managing cash flow effectively is vital for sustaining operations and fostering growth. One solution that has gained significant traction, especially among small and medium-sized enterprises (SMEs), is factoring financial services. This blog will explore the basics of factoring in finance, its features, types, benefits, and its growing importance in India.

In today's fast-paced business environment, supply chain finance (SCF) has emerged as a vital tool for enhancing liquidity and optimizing working capital. This blog aims to provide a thorough understanding of supply chain finance, its benefits, types, best practices, technologies, providers, challenges, metrics, and real-world examples.

Understanding Vendor Factoring Vendor factoring or accounts receivable factoring or debt factoring is a modern financing tool developed for suppliers confronting protracted payment terms. At the heart of it, it is the selling of accounts receivables106, to a third-party (factor). This structure gives suppliers ready access to funds on their invoices without having to endure the typical waiting for days or weeks (or in extreme cases, 30 to 90 days/several months or more, depending on the industry and agreements in place).

One of the most important fiscal tools used by business realities to manage their cash overflows, bill discounting, and tab discounting is salutary. Bill discounting is the process where a business proprietor gets immediate access to finances from banks or NBFCs by dealing its overdue bills to them at a reduction. This permits plutocrats to enter the company straight down, rather than in the event the sale term is complete. On the contrary, tab discounting is a form of short-term borrowing in which a business uses its receivables as collateral for the mileage of a loan from a fiscal institution.