- Hindustan Times
MSMEs can now access 9,000 factors to monetize their pending bills: Sitharaman
Finance minister Nirmala Sitharaman on Saturday said the recently enacted factoring regulations have raised the number of factors from nine to 9,000 as micro, small and medium enterprises (MSMEs) can now approach several non-banking financial companies (NBFCs) to monetise their pending receivables.
Referring to the Factoring Regulation (Amendment) Bill that was passed in the monsoon session of Parliament, Sitharaman said the legislation aimed to benefit several MSMEs supplying goods and services to large companies and wait for months to get payments.
She was speaking at the launch of the ‘Ubharte Sitaare’ Fund in Lucknow, an initiative of India Exim Bank and Small Industries Development Bank of India (SIDBI) for export-oriented firms and start-ups. She said MSMEs have options to encash their pending bills through factoring – either with a discount or without any discount.