Factoring Finance Services: Manage Cash Flow Easily

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What is Factoring?

Factoring is a dynamic financial solution tailored for businesses to optimize their cash flow by converting receivables into immediate liquidity.

Tata Capital’s Factoring services allow seller to sell outstanding invoices at a discount, ensuring timely access to funds. This innovative offering helps streamline operational expenses, invest in growth, and reduce credit risks.

With Tata Capital’s tech-enabled platforms and customized support, you can efficiently manage receivables, strengthen business liquidity, and focus on expanding your business network.

Rates and Charges

Particulars	Channel Finance
Customer ROI	9.00% - 21.00%
Processing Fees	Minimum 1% of Sanctioned Amount
Stamp Duty	As per Stamp Duty Circular, Varies from State to State
Foreclosure Charges	Upto 6%

Penal Charges

Default in payment of interest and/or principal amounts, Below charges on the defaulted amount

Overdue Days	Penal Charges
1-30 days	4% p.a
31-60 days	8% p.a.
61- 90 days	12% p.a.
Greater than 90 days	24% p.a

(ii) Dishonour Charges: Rs. 670/- (Rupees Six Hundred and Seventy Rupees only) for every Cheque/ Payment Instrument/ ECS Dishonour.

(iii) Non-creation/perfection of security: @ 2% on the outstanding principal amount will be charged for the period of delay in respect of delayed/non-submission of security/collateral related documents and non-perfection of security.

*Charges to be paid along with applicable Tax

Schedule of Other Charges

Description	Periodicity	Penalty Amount
Delayed/non submission of stock statement	To be submitted Quarterly by 10th of every Calendar Quarter.	Additional one time charge of Rs 20,000/- per Quarter
Delayed First Insurance cover note and non renewal of Insurance on due date	First Insurance:- within 30 days from disbursement date. Renewal : as and when due	Additional one time charge of Rs 20,000/- per financial year
Non adherence of financial covenants’ of sanction letter	At the time of Review /Renew of account	Additional one time charge of Rs 20,000/- per financial year
Documentation charges	Rs 5,000/-
Stock Audit charges	Rs 5,000/-
ROC and CERSAI filling	Rs 5,000/-
Valuation charges	As per actuals
TSR fees / Title search fees	As per actuals
Security trust fees	As per actuals

Charges to be paid along with applicable Tax

Factoring Solutions Features & Advantages

Here’s why you should choose Tata Capital to get a Factoring for your business:

Convert your receivables into instant cash, maintaining uninterrupted business operations with Seamless Cash Flow Management

Transfer the credit collection responsibility to Tata Capital, minimizing the risk of payment delays, substantially reducing the credit risk.

Benefit from fast approvals and disbursals, ensuring your liquidity needs are met promptly.

Strengthens relationship.

Other Working Capital Solutions

At Tata Capital, we provide several types of working capital loans to cater to the precise needs of business owners. You can choose from the following working capital solutions:

Channel Finance

Get a working capital loan to finance your channel partners, such as distributors, dealers, etc. You can use these funds to purchase raw materials for your business.

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Invoice Discounting

Get access to finances against your unpaid invoices. It can help you tackle cashflow shortages and meet the growing demands of your business.

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Working Capital Demand Loan

Get additional funding up and over your working capital loan. With Tata Capital Working Capital Demand Loan, you can get easy financing to pay for additional business expenses.

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Factoring

Unlock instant cash flow by selling your receivables (invoices) at a discount through Tata Capital’s factoring solution. With this, you can access working capital to meet business needs without waiting for customer payments.

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Explore our Other Solutions

Term Loans

Tata Capital Term Loans are designed to help you meet all your business requirements and fund your business expansion and growth.

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Structured Products

At Tata Capital, we provide your business a wide range of customized financing solutions driven by a combination of assets, contracts and underlying cash flows.

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Construction Finance

Tata Capital's team of specialists can help you analyze your precise requirements and select the right loan product for your construction business.

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Equipment Finance & Leasing

Tata Capital brings you comprehensive and innovative, solution-oriented asset financing solutions to help you procure the right equipment for your business.

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