Financial Management & Corporate Finance Case Study

Outsourcing Receivables Management: An Evolving Approach to Business Financing

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Abstract:
This case study lucidly presents the concept of factoring with the help of discussion between two friends - Vamsi, a farmer by profession and Srinivas, a professional working with a factoring company. This case study provides adequate scope to discuss the fundamentals of factoring, its objectives, factoring as a source of financing and functions of factors. The case study also deliberates the perspective put forth by the C.S. Kalyanasundaram Committee.

Pedagogical Objectives:

• To understand the fundamentals of factoring as an outsourcing of receivable management.
• To understand the superiority of factoring when compared with other forms of financing.
• To understand the role and importance of Factors Chain International in the growth of factoring services.

Keywords : Factoring, Financial Services, Recourse Factoring, Non- Recourse Factoring, SBI Factors, Canbank Factors, Global Trade Finance, Financial Services, Factoring Companies in India, Kalyanasundaram Committee, Receivables Management