SBI Factors and Commercial Services Pvt Ltd has called for a separate legislation for factoring services. At present a factoring transaction is considered to be a sale and attracts stamp duty, which SBI Factors say hampers the growth of the industry.
The company had factored receivables worth Rs731.64 crore in 2003-2004 and last week opened its sixth branch in Chennai and plans to set up branches in Hyderabad, Bangalore, Ludhiana, Indore, Chandigarh and Ahmedabad.
The company focuses on financing the small- and medium-sized enterprise (SME) sector, offering factoring facilities to the trade and services sectors. SBI Factors is planning to introduce an export factoring facility.
Source: Asia Intelligence Wire
