Factoring, DFHI, CCIL

Administration of sales ledger , collection of receivables, provision of finance, protection against risk, advisory services

Recourse and nonrecourse factoring, advance and maturity, conventional or full factoring, domestic and export factoring, limited factoring, selected seller based factoring ,selected buyer based factoring, disclosed and undisclosed factoring

Improved cash flow, faster access to funds, credit risk management, no collateral required, simplifies collection, professional ledger management, flexibility in financeing, advisory support, reduce debt burden, enables focus on core activities

<p>High cost, risk of fraud, dependency on factors, customer relation impact, limited services for small business</p> Signup and view all the answers

<p>Short term finance, sales of receivable, service oriented, non collateral based, two types recourse and nonrecourse</p> Signup and view all the answers

<p>Factoring means and arrangement between a factor and his client which includes at least two of the following services to be provided by the factor finance maintenance of accounts protection against credit risk collection of debt</p> Signup and view all the answers

<p>Agreement between Selling form and factor, in the sales document instruction to make payment directly to factors are mentioned, payment received by factor they did the fees and transfer the remaining amount to sellers account, factor may provide advance finance to the seller</p> Signup and view all the answers

<p>Government security market, money market, forex segment, derivative market , trade repository</p> Signup and view all the answers

<p>Incorporated in 2001 provides institutional framework it clears and settle the transaction in government securities money market instrument RBI authorised with share capital of rupees 100 crores 50 equity 50 preference. core promoters SBI LIC HDFC Bank of Baroda ICICI. Objectives improve efficiency mitigate risk broaden and deep and financial market</p> Signup and view all the answers

<p>Liquidity in secondary market, banking facilities domestic and foreign countries, medium and short term financial need, underwriting services , facilitating international trade</p> Signup and view all the answers

<p>Specialise acceptance of bills of exchange, guarantees due date payment, charge fees or commission, avoid risk , negotiate bills of exchange and reduce credit risk</p> Signup and view all the answers

<p>Colin English dictionary acceptance house is a European merchant bank or non Bank financial institution often in exporters country which accept bills of exchange drawn on it on the account of credit worthy importer</p> Signup and view all the answers

<p>Liquidity, low risk operation ,active in money market ,short term instrument, discounting and rediscounting. Discount houses place significant role in money market it deals in short term instruments like treasury bills commercial bills buy at discounted rate and hold until maturity or cell at profit provides quick cash.</p> Signup and view all the answers

<p>Depository, uses surplus fund to balance, ready market deals in commercial bill treasury bill and other money market instrument, stabilizing interest rate , promoting investment in money market instrument , support monitory policy implementation</p> Signup and view all the answers

<p>Dependency on government and regulatory policies, limited market depth and liquidity, competition, limited awareness and low participation, manage volatile interest rate</p> Signup and view all the answers