MAS Financial Services gets RBI approval to launch factoring

MAS Financial Services Limited (MAS financial Services) has received approval from the Reserve Bank of India to launch its factoring business, marking a strategic expansion of its financial services portfolio. The company confirmed that it has been granted an additional certificate of registration, allowing it to operate in the factoring segment alongside its existing non-banking financial company (NBFC) activities.

The approval enables MAS Financial Services to explore trade receivables financing solutions for businesses, though the company stated that the actual commencement of operations will depend on prevailing market conditions and business opportunities. Factoring services typically help companies manage working capital by selling their receivables to financial institutions at a discount, improving cash flow and liquidity.

In its regulatory filing, the company emphasized that the move aligns with its long-term growth strategy and diversification plans within the financial services sector. Industry analysts suggest that entry into factoring could help the firm strengthen its presence in the SME financing ecosystem, where demand for working capital support remains strong.

MAS Financial Services has built its business primarily around retail and small business lending. Expanding into factoring is expected to complement its existing operations and potentially open new revenue streams. The company has not yet announced a specific timeline for launching the service but indicated it will monitor market dynamics before initiating operations.

The RBI approval reflects ongoing regulatory support for NBFCs looking to diversify financial offerings and enhance credit availability across business segments.