To provide factoring service to the manufacturers in SSI sector supplying their products on credit terms to various purchasers in the domestic market with a view to assisting them in their receivable management as also providing them with finance against the receivables factored.

Facilities are extended to existing units in SSI sector - with good track record of performance and sound financial position - supplying components/ parts/ accessories/ sub-assemblies etc. on short term credit to well established purchasers units. They should have been in operation for at least three years and have earned profits and/or declared dividend during the two years prior to taking up the scheme.

Sales of the unit should preferably be spread over a minimum of 3 customers with maximum sales concentration in a single buyer being less than 50%. Maximum credit period shall be of 90 days.