FACTORING SERVICES

Factoring services make available the much neeeded working capital to Small Scale Enterprises and is likely to induce customers to make timely payments for fear of adverse "customer-image" in the market.

Factoring services are being increasingly set up, which is a good sign. Some private factoring companies have also come up. Government of India intends to bring forward legislation to promote factoring without recourse for the SSI Sector.