India Exim Sets To Announce Export Factoring For MSMEs

According to the latest news, the Export-Import Bank of India (India Exim) is all set to introduce its export factoring program for MSMEs (micro and small to medium enterprises) this year to strengthen their liquidity and support non-payment risks.

When the scheme was approved by its board, the bank intended to carry out pilot transactions by the end of September, as per the statement given by N. Ramesh, India Exim deputy managing director.

Under the scheme of trade finance, the bank is going to purchase the invoices from the Indian exporters. It will result in the early payment to the exporters while the lender takes the responsibility for payment faults made by the overseas buyers who buy Indian exports. According to the bank, the risk of non-payment is increasing these days.

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