Because, CBF is a professionally managed company with the support of Canara Bank, a progressive commercial Bank in the Country. In a totally computerized environment, CBF is known for quick decisions and flexibility in meeting the requirements of its client. It is a profit making and dividend paying company.
Only where factorability is present, this facility is suitable. Factorization is not suitable in the following cases :
While we appreciate your concern, we have to assure you that there is no scope for such misunderstanding once the concept of Factoring is well understood and the need for corporate co – operation is realised in the matter of maintaining the Production – Sales – Realisation cycle in a smooth manner. Factoring is gaining acceptance in our country as a normal progressive business service and is definitely a significant global trend today.
‘Recourse’ or ‘With recourse’ factoring – we provide you only financing but not credit cover. Should your customer fail to pay up, we will have recourse to you to get back the money advanced to you.
‘Non – recourse’ or ‘Without recourse’ – where credit cover is provided and in the event of failure of the customer to pay, the factor will bear the bad debt risk. However, in India, this is yet to be introduced.
|Mainly, you should be in the line of Manufacturing or Trading or Services. You should have sound financial base and a turnover of not less than Rs. 50 lacs per annum. Your customer base should be strong and prompt in payment. ‘Factorability’ is the underlying principle to entertain a proposal.|
We offer a professional service of very high order and our charges will be certainly comparable to that of banks. Considering our quality of services, quick decision and flexibility, you will find that our fees are very reasonable. If your credit rating is high and your customer base is strong, you stand to benefit in charges.
There are two types of charges – service charge and discount charge.
Banks offer a package of financial facilities starting from Term Loan to working capital and others. Our product is mainly factoring – a credit facility designed to enhance your cashflow. We make an outright purchase of your debts and the financial rights to invoices. The formalities are very simple compared to that in banks. In a nutshell, we purchase your creditworthy accounts receivable at a reasonable discount and fund you with immediate cash upto an agreed percentage of the invoice value.