Beruflich Dokumente
Kultur Dokumente
ASSOCHAM
SME: Finance with Governance
-Challenges & Opportunities-
Agenda
India’s SME scenario
Key Strength of Indian economy
Problems faced by SMEs
Traditional source of finance
Factoring as an alternative
Advantages and constraints of factoring
IFCI Factors Limited- A brief profile.
Eligibility Criteria
Credentials
2
India’s SME Scenario…
Indian SMEs account for almost 45 percent of industrial output and 40
percent of India’s total exports.
Due to the recent Economic Slowdown most of the western countries were
effected unlike India which was relatively less hurt as the whole dynamics
of our economy is different from other countries i.e.,
– Leveraging
4
Contribution of SME Sector in India…
6
Traditional Sources of finance for SMEs
8
Factoring an alternative…
Factoring…
A flexible alternative to traditional forms of funding. Client makes a sale, delivers the
product or service and generates an invoice. The factor buys the right to collect on that
invoice and allow funding, usually 80%-90% of the invoice value.
10
Development of Factoring Services…
Presently, over 900 companies in more than 60 countries all over the world.
In 1991, RBI permitted SBI and Canara Bank to start factoring services
through their own subsidiaries.
11
No geographical limits.
Credit screening cum Credit monitoring and early detection and warning of
customer service problems.
12
Constraints…
Stamp duty.
13
International scenario…
Total of America and Europe accounted for approx 80% of the global
factoring business.
Asia’s factoring volume accounts for approx 18% of global factoring volume.
China, Japan, and Taiwan account for approx 90% of the Asia’s factoring
volume.
14
Opportunities for Factoring…
India and China are becoming manufacturing hub for the entire world.
15
17
Credentials…
18
19