Factoring allows sellers to completely write-off their receivables by bundling them and executing a true sale of receivables at a discount to a financial institution. The financial institution is designated as the Collection Agency responsible for collecting payments from buyer(s) on their respective due date.

Process flow
- Seller uploads invoices of approved debtors in Veefin SCF in case of a semi-automated system. If not, Veefin SCF accesses details of accepted receivables directly by integrating with the Buyer’s ERP systems
- A percentage of the total amount of receivables as pre-determined is advanced by the Financier at the time of factoring
- On the due date, the financial Institution receives payment against the invoices due from the buyers directly
- In case of a full payment, the remainder percentage of the invoice payment excluding the factoring charges for the duration are remitted to the seller
- In case of a partial payment or lack of collection by the due date, penal clauses as per financial Institution’s sanction terms to the seller are triggered automatically using Veefin CMS
Distinctive Features
Automated Workflows
Veefin SCF offers flexibility to automate approval of debtors and limit-setting as per requirements at a Buyer-Seller specific level or buyer or seller individually.
Efficient User Interfaces
Intuitive interfaces backed with logical workflows allow ease in onboarding and execution of transactions.
Access on Mobile
Mobile applications for suppliers and corporates to access Veefin and perform transactions swiftly from any location.
Configurable Parameters
Workflows can be easily configured to automate all commercial aspects of the transaction – Advance Percentage at a seller/buyer level, Factoring Charges Upfront, Penal Charges, and knock-off and settlement
Automated Settlements
Veefin enables automated invoice reconciliations and settlements on due-date to avoid double entry accounting and triggers penal clauses in case of delay or part-settlement of invoices.