Factoring Services in India

Convert unpaid invoices into working capital.

Late customer payments can slow down your business. With Dhanvraksh's invoice factoring, unlock funds against unpaid invoices instead of waiting — and let our team handle collections professionally on your behalf.

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Overview

What are Factoring Services?

Factoring services are financial solutions where a business sells its unpaid invoices to a factoring provider at a discounted value. The provider gives an advance against those invoices and later collects payment directly from your customers.

Factoring is different from a normal business loan — it is based on your invoices and customer payments. Funding depends more on whether your customers can pay on time, not on your business assets. Manufacturing, trading, logistics, wholesale, and export businesses use invoice factoring to maintain healthy working capital.

Improve cash flow quickly
Reduce collection delays
Manage receivables professionally
Focus more on business growth
Reduce pressure from unpaid invoices

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Process

How factoring services work.

The process of invoice factoring is simple — made to improve your business cash flow without lengthy loan procedures.

You Raise an Invoice

Sell goods or provide services, then issue an invoice with a payment period.

Submit to Factoring Company

Share the invoice with Dhanvraksh. We verify details and confirm the receivable is genuine.

Receive Advance Payment

Once verified, you receive a large part of the invoice amount in advance.

Customer Pays Invoice

On the due date, your customer pays directly to the factoring provider.

Balance Sent to You

After deducting service charges, the remaining amount is transferred to you.

Benefits

Why businesses prefer invoice factoring.

Faster Access to Working Capital

Get money quickly against unpaid invoices — no waiting for customer payments to keep operations running.

Better Cash Flow Stability

Maintain steady liquidity even during long customer payment cycles.

Collection Support

Our team follows up with customers and ensures payments are collected on time, professionally.

Reduced Credit Pressure

Funding is linked to invoice quality and customer repayment ability — no heavy collateral required.

Improved Business Focus

Spend more time on sales, operations, and expansion instead of chasing payments.

Professional Receivables Management

Better payment tracking, customer follow-ups, and receivable monitoring through dedicated support.

Types

Choose the factoring structure that fits.

Different businesses require different funding and collection structures — Dhanvraksh offers factoring services in multiple forms.

Recourse Factoring

The business remains responsible if the customer does not pay. Lower charges — suitable for businesses with reliable customers and strong payment history.

Non-recourse Factoring

The factoring provider takes the risk of customer non-payment due to insolvency. Stronger protection — preferred by exporters and businesses dealing with large buyers.

Domestic Factoring

Used when both buyer and seller work within India. Common among wholesalers, distributors, and manufacturers managing local trade receivables.

Export Factoring

Helps exporters get faster payments from international buyers — supports overseas collections and reduces the risk of delayed payments.

Comparison

Factoring vs Invoice Discounting.

Both help businesses get funds against unpaid invoices, but they work differently.

Feature	Factoring Services	Invoice Discounting
Collection Management	Handled by the provider	Handled by the business
Customer Follow-Up	Included	Not included
Funding Against Invoices	Yes	Yes
Receivable Support	Extensive	Limited
Suitable For	SMEs needing collection support	Businesses with strong internal collections

Eligibility & Documents

Simple to qualify. Easy to apply.

Eligibility Criteria

Registered business entity
Active business operations
B2B invoicing model
Valid GST registration
Consistent invoice generation
Customers with an acceptable credit profile

Documents Required

Business proof — GST certificate, incorporation documents
Identity proof — PAN, Aadhaar
Bank statements and financial reports
Customer invoices and purchase orders
Buyer agreements and payment records

Charges

Transparent factoring fees.

The cost of invoice factoring depends on invoice value, customer credit quality, payment tenure, industry risk, and funding volume.

Charge Type	Description
Service Fee	Collection and account management charges
Discounting Fee	Funding cost against invoices
Processing Charges	Documentation and onboarding costs
Late Payment Charges	Applicable in specific cases

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Turn unpaid invoices into working capital.

Delayed payments slowing down your cash flow? Choose efficient invoice factoring with Dhanvraksh. Whether you need domestic or export factoring, we help you manage working capital more efficiently.

Faster funding without lengthy loan procedures
Professional collection support
Flexible structures — recourse or non-recourse
Transparent pricing with no hidden costs

FAQs

Frequently asked questions.

What is factoring?

Factoring is a service where businesses get money against unpaid bills or invoices. The factoring company gives the money early and collects the payment from customers later.

How does invoice factoring work?

A business gives its unpaid invoices to a factoring company. The company gives part of the money in advance and later collects the full payment from the customer. This helps businesses get funds quickly without waiting.

What is non-recourse factoring?

Non-recourse factoring is where the factoring company takes the risk if the customer does not pay due to financial problems. It is often preferred by businesses dealing with large or international buyers.

Is factoring suitable for small businesses?

Yes — factoring services are commonly used by SMEs and growing businesses that face delayed customer payments. It helps them improve cash flow and continue daily operations easily.

What are factoring charges?

Factoring charges are fees for using the service — typically including service fees, discounting charges, and processing fees. The total cost depends on invoice value and customer payment timelines.