Government invoice factoring1/7/2024 ![]() ![]() Rajkumar added, “Uttar Pradesh was also selected for the defence corridor project alongside Tamil Nadu at the same time, but their pace of progress in attracting investments is high. Accounts receivable financing, also known as accounts receivable factoring or invoice factoring, improves cash flow for all types of government contractors by providing immediate payment on government receivables. To utilise government programmes, the cooperation of district industry centres was also requested. Receivable financing is a great solution. The association members suggested the development of clusters and incubation facilities in the nodal cities.īhelsia members claimed that the state’s manufacturing capacity where Tamil Nadu’s MSMEs’ capacity of 14 lakh tonnes per year can create fabrication and machining goods remains underutilised. When working with government contracts, invoices are normally paid weeks or months after the services are provided. The factoring company collects the outstanding invoice from the government. The advance can be as much as 90 of the invoice, less the factoring fees which can run anywhere from 2 to 5 depending on several factors. Cant afford to wait 30 to 60 days to get paid by your commercial or government customers This is a common challenge for many business owners and often leads. ![]() Learn more about government factoring at. Export opportunities must be explored too.”Īlso Read: ECLGS: 1.19 crore MSMEs, other businesses benefitted till June 2022 Rs 3.48 lakh cr loans sanctioned A government factoring company will step in and buy the receivables for an upfront cash advance. Receive up to 80 of your receivables from government contracts to avoid delays in your project. Authorities must help MSMEs get defence and railway component production orders. Rajappa Rajkumar, President of Bhelsia, said, “It is high time governments stopped spending money on exhibitions and seminars. The process of government contract factoring is the same as the factoring in many other industries. Representatives from each of the five nodal cities-Chennai, Coimbatore, Trichy, Salem, and Hosur-would be chosen to serve on the core committee whose primary function would be to direct investments. NPCI to acquire stakes in govt’s pet e-commerce project ONDC
0 Comments
Leave a Reply.AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |