Unlock Export Growth: How Factoring Services Empower Indian Exporters

Are you an Indian exporter struggling with delayed payments and limited access to export credit? You’re not alone. Recent news reveals India has identified low export credit availability and underdeveloped factoring services as major pain points for export growth. Addressing NITI Aayog’s post-budget webinar on Trade Finance, Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi revealed that export credit stood at $124.7 billion, covering just 28.5% of the required $284 billion for merchandise exports worth $437 billion in FY 2023-24.

What the Report Says: Key Excerpts

•  “India has flagged the inadequate availability of export credit and a weak ecosystem for factoring services as key constraints to achieving higher merchandise exports.”
• “Outstanding export credit from banks fell to ₹2.19 lakh crore in March 2023 from ₹2.26 lakh crore in March 2022, despite an increase in export volumes.”
• “Factoring, which provides working capital against export receivables, remains underused—India accounted for less than 0.3% of the global factoring market in 2021.”

What is Factoring and Why Does It Matter for Exporters?

Factoring is a financial service where exporters sell their invoices to a third party (a factor) at a discount, receiving immediate cash flow. This enables businesses to:

• Maintain healthy working capital
• Reduce the risk of bad debts
• Focus on scaling operations instead of chasing payments

In global markets, factoring is a proven tool for export finance. However, in India, many exporters are yet to leverage its full potential.

Where Sriya Enterprise Comes In

At Sriya Enterprise, we understand that navigating trade finance, RBI regulations, and global payment cycles can be overwhelming, especially for growing exporters.

Here’s how we can assist:

1. Export Credit Advisory
   We help MSMEs identify appropriate sources of export credit and structure proposals in line with RBI/FEDAI norms. Whether it’s post-shipment finance or packing credit, we guide you end-to-end—from application to disbursal.
2. Factoring & Receivables Solutions
   Confused by factoring or unaware of how it works? Sriya helps demystify it. We connect you with trusted factoring partners, help you evaluate costs vs. benefits, and even support documentation and negotiation.
3. Risk Management & credit guarantee Guidance
   With credit guarantee coverage still limited, knowing how to secure and maximize risk insurance is critical. Also how it can double up as Finance instrument
4. Export Finance Readiness Check
   Not sure if your processes are export-credit ready? We offer a diagnostic assessment to ensure you meet eligibility, documentation, and compliance requirements to raise funds seamlessly.
5. Training and Capacity Building
   We offer practical training for exporters, finance teams, and women entrepreneurs on FEMA, trade documentation, and compliance—empowering businesses to scale without fear.

Conclusion

The export credit gap is real—but with the right guidance, it doesn’t have to be a roadblock.

Ready to grow your exports with expert guidance?
Visit www.sriyaent.com or contact us today to schedule a 1:1 consultation.