How can I use this facility?

If you supply goods and/or services to large corporate entities on a recurring basis you may often find your working capital trapped for significant periods of time, limiting the volume of new work orders accepted. Under this facility, you can receive up to an 80% advance on verified invoices. You can avail financing against multiple invoices from multiple buyers simultaneously (but within the Credit Limit). The outstanding balance with IDLC is settled through collections from the buyersonce the invoice/bill is matured (with any remaining balance refunded to you).

Why would I avail a Factoring (of Accounts Receivable) facility?

  • Accelerated sales growth through injection of fresh funds to execute work orders while awaiting payment from buyers.
  • Build greater client partnerships with buyers resulting in greater sales.
  • Improve working capital and liquidity management by reducing Days Sales Outstanding.
  • Manage and improve Cash Flow precisely and efficiently in the balance sheet, reducing operating costs.


  • Up to 80% of advance financing against verified invoices.
  • Credit Period is the client cash flow cycle (maximum of 180 days).
  • Payment assignment from the buyers.
  • Loan Limit: Any amount that is justified with sales (and incumbent on management approval).
  • Loan Tenure: 1 year from the Sanction date.

Financing Process:


  • Supplier delivers goods
  • Supplier submits invoice to IDLC
  • IDLC submits invoices for receiving
  • IDLC funds up to 80% of invoice value
  • Buyer makes payment to IDLC on original due date
  • IDLC refunds the remaining 20% after deducting the charges

Am I Eligible?

  • Must have recurring sales on credit to corporate buyers.
  • Minimum 2 years of continuous business operation and experience.
  • Age between 21 years to 60 years.
  • Business within service range of IDLC branches.
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