1. It has been found that, in India factors usually take the bills for factoring, drawn on some selected drawee companies only. If this be the case, there is every likelihood that they will accept the bills for factoring mainly (or even solely) from the first class (Ă˘â‚¬ËśAĂ˘â‚¬â„˘ category companies, and from the cream of the Ă˘â‚¬ËśBĂ˘â‚¬â„˘ category companies, only; and would not accept any bill drawn on the Ă˘â‚¬ËśCĂ˘â‚¬â„˘ or Ă˘â‚¬ËśDĂ˘â‚¬â„˘ category companies, or the lower level of even Ă˘â‚¬ËśBĂ˘â‚¬â„˘ category companies, where the recovery may be rather doubtful. On the other hand, the companies would not like to give the bills of the Ă˘â‚¬ËśAĂ˘â‚¬â„˘ category drawees, these being Ă˘â‚¬Ëśno riskĂ˘â‚¬â„˘ or Ă˘â‚¬Ëślow riskĂ˘â‚¬â„˘ clientele.
This, in turn, will result in a much lower level of factoring business taking place. Further, this will mean that the companies will also have to maintain their credit collection department side by side. These circumstances cannot be said to be conducive for the growth of the factoring business in India. Under these circumstances, what are your considered opinion and conducive suggestions, for making Ă˘â‚¬ËśfactoringĂ˘â‚¬â„˘ a gainful alternative arrangement for the companies?
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You wonâ€™t have to worry about the quality and deadlinesOrder Paper Now