1 AIT Asian Institute of Technology

Feasibility study on broadening the scope of factoring services in India

AuthorAtale, Nikhil
Call NumberAIT RSPR no. SM-96-82
Subject(s)Factoring services industry--India
NoteA research submitted in the partial fulfillment of the requirements for the degree of Masters of Business Administration.
PublisherAsian Institute of Technology
Series StatementResearch studies project report ; no. SM-96-82
AbstractThis study attempts to compare the receivable management practices in small/medium scale industries in India with a special reference to the factoring of receivable. The information used in this study was gathered tlu·ough questionnaire and interviews with Factors in India and Netherlands. The study material also incorporates information from the company publications and the government publications, published and unpublished academic literature and business magazines. The study identifies the typical features of receivable management and financing practices pursued by entrepreneurs vis-a-vis other available options. The other dimension of this study analyses the performance indicators since inception of factoring services. Critical factors have been identified for broadening the scope of factoring services in the Indian context. Fund and resource constraints, lack of legal framework, classification of factors as NBFC's are found to be the major hurdles in the growth of this business. From users perspective, inclination towards using conventional method of financing receivable, lack of awareness about factoring services were identified as major hurdles in the growth of this business. Beneficiaries were satisfactory with the kind of services they are availing and everyone has witnessed growth in sales accompanied by lowering of collection period, and bad debts. Finally, the study identifies some areas of concern to both the factors and the government that is conducive to the further development of factoring services in India.
Year1996
Corresponding Series Added EntryAsian Institute of Technology. Research studies project report ; no. SM-96-82
TypeResearch Study Project Report (RSPR)
SchoolSchool of Management (SOM)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Pandey, I. M.
Examination Committee(s)Gupta, J. P.;Tang, J.C.S.
Scholarship Donor(s)The Royal Government of Netherlands.
DegreeResearch Studies Project Report (M.B.A.) - Asian Institute of Technology, 1996


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