Factoring services Timely payments from customers will help SMEs in reducing their working capital requirements leading to lower interest costs, improved profitability and a positive impact on the long-term health and sustainability of India’s SME sector. Delays in settlement of dues adversely affect the recycling of funds and business operations of the SME units.
Some of these instruments, such as asset purchases, had featured in the traditional toolkit of central banks in the early years of central banking before largely falling out of use in some parts of the world.