Abstract

                                Factoring is a global industry with a large turnover. It provides a numberof benefits, including predictable cash flow, lower administrative costs,decreased credit risks, and more time for the core business. Domestic andinternational factoring are gaining popularity at a rapid rate in every cornerof the globe. During the industrialization period, the relevance of factoringhas grown not just in developed countries but also in developing countries.The world factoring statistics indicates that the Factoring and ReceivablesFinance Industry volume witnessed retraction due to Covid-19, showingnegative trends in most regions. Compared with the previous year’s 2,917billion euro, the 2020 volume of 2,726 billion euro represents a decline of6.5%. The last time the industry experienced a decline was in 2009 duringthe financial crisis, when the industry lost 3% in global volume. This decreasein global volume in 2020 follows a solid three-year growth spurt from 2017-2019, when the industry grew by 6%, 9%, and 5%, respectively. However,2020 marks an unprecedented reduction stemming from the effects of thevirus, resulting in a significant reduction in global GDP and Trade that hada substantial impact. (FCI Annual Report 2021). A more consistent policyenvironment for factoring services is needed, one that supports and promotesincreased involvement by all nations in various country groups and withineach country group. The factoring services entered in India in the year 1991.Since then, a good number of factoring companies namely Canbank Factors,SBI Global Factors, HSBC Bank, IFCI Factors, India Factoring and FinanceSolutions, DBS, Citibank, SIDBI, Standard Charted, Foremost Factors andExport Credit Guarantee Corporation of India have been offering factoringservices in India.

Key words : Factoring industry; India; Global perspective