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NBFC Profectus capital gets RBI nod to provide factoring services to MSMEs

May 11, 2023

NBFC Profectus capital gets RBI nod to provide factoring services to MSMEs
Non-banking financial company Profectus Capital on Wednesday announced that it has received the Certificate of Registration (CoR) under the Factoring Regulations Act, 2011 from the Reserve Bank of India to provide factoring services to MSMEs. 

The company said it plans to offer timely and efficient factoring services to improve their working capital management, boost their businesses, and receive short-term finance to fund operations. Profectus will continue to focus on select manufacturing and service sectors based on its cluster-based lending approach.
 
Moreover, it plans to focus on BBB- and above rated corporate buyers. “Pricing of financial assistance would vary with the risk profile of the assisted entities,” it added.
 
“We are excited on the quick approval of our application from the RBI. This approval will enable us to penetrate deeper into our existing markets and widen our customer base. We expect the factoring space to evolve significantly over the next two years, owing to the inclusion of NBFCs and expect MSMEs to benefit significantly from an immediate improvement in their cash flows at a very low cost, said KV Srinivasan, Executive Director, and CEO of Profectus Capital in a statement.
 
Found in 2017, Profectus Capital, backed by global private equity firm Actis, provides financial solutions to MSMEs in select manufacturing and services sector and has catered to enterprises in education, pharmaceuticals, healthcare, food processing, engineering and machine tools, printing and packaging, textiles, chemicals, and plastics.
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