India Factoring and Finance Solutions Pvt Ltd on Tuesday said it is targeting to nearly double its business to Rs 4,000 crore in 2012-13 and focus on the western states, including Gujarat.
The company is a joint venture of Punjab National Bank (30 per cent), Malta-based FIM Group (50 per cent), Italy-based Banca IFIS (10 per cent), and Mumbai-based Blend Financial Services (1 per cent), with employees holding 9 per cent stake.
In 2011-12, India Factoring achieved Rs 2,300-crore turnover, accounting for 20 per cent market share of the factoring business in India, Mr Sudeb Sarbadhikary, CEO, said.
India Factoring provides financial solutions to more than 250 SMEs and SSIs from its seven offices across India. The company is now focusing on the western region, which accounts for nearly 35 per cent of its business.
'Factoring'
Factoring is a financial transaction where a business sells its accounts receivables to a third party called ‘factor’, which undertakes the activity of financing the receivables, administering the debt and its collection.
At present, India’s total factoring market is nearly Rs 10,000 crore per annum.
According to Factors Chain International, a global association of factoring companies, factoring services worldwide has experienced a growth of 100 per cent in the last five years.