How Are Technological Advancements Reshaping the Landscape of the India Factoring Services Industry?
Factoring services are a financial arrangement where a company sells its accounts receivable to a third party at a discounted rate. This transaction can take various forms, including recourse, non-recourse, reverse , and invoice factoring. Factoring is widely used across industries such as retail, manufacturing, logistics , healthcare, construction , and technology . Its benefits include streamlined accounting processes, immediate cash flow, low risk , improved balance sheet and scalability , and reduced collection efforts . Additionally, factoring offers credit risk analysis, allows businesses to focus on their core activities , and enhances financial ratios . The expansion of the manufacturing industry in India and the growing need among startups and SMEs for alternative financing are further driving the growth of the factoring services industry in India. Additionally, the increasing demand for alternative financing sources for SMEs is a major factor propelling the growth of the