Factoring is another form of working capital finance extended by Pyramid Finance Ltd. Suppliers of materials to triple A rated manufacturing companies or hotels usually receive payments after credit period, which usually ranges from 30 to 90 days. These suppliers may not be in a position to negotiate better payment terms.

Through Factoring the supplier can receive funds immediately without having to wait for the credit period to expire. When the supplier sells goods, a bill is raised on the purchaser who accepts it. On acceptance of the bill, Pyramid Finance Ltd. pays the supplier the bill amount after deducting factoring charges. The factoring charges will depend on the risk profile of the acceptor reflected in profit margins, leveraging, the nature of the product, scope for growth, etc. Pyramid Finance Ltd. will then collect the payment from the acceptor on the due date.

1.Client concludes credit sale with its customer.
2.Client submits copy of invoice accepted for payment on due date by Customer to the Factor.
3.Factor makes payment to the Client after deducting upfront interest and other charges.
4.On the due date the Customer makes full payment of the invoice to the Factor.