ICICI Bank provides factoring services to improve customers' cash flow and credit rating by taking over receivables collection. Factoring allows customers to access working capital by selling their receivables to the bank at a discount. ICICI Bank offers both domestic and export factoring services as well as import and export financing through letters of credit, trade credit, and bill discounting. The bank aims to meet all trade financing needs with competitive rates and a large international correspondent bank network.

1. Factoring Services in
ICICI Bank

2. Factoring Overview
• It started in Ancient Rome, there manufacturers and merchants used Factor
• To administer the sales
• Period of Colonization
• Grew rapidly in the United States, as there was a significant demand for European
merchandise

3. Factoring services included
• Taking physical possession of the goods
• Storing them
• Finding buyers and delivering the goods to them
• Collecting payment from the buyers
Today , factoring is being offered as a valuable financial product major financial
institutions and banks.

4. The Factoring Regulation Act
• The Factoring Regulation Act, 2011
• In India 23 January, 2012 wherein provisions are made
• Registration and obligations of parties to contract for
assignment of receivables.

5. Silent Features of the Factoring
Regulation Act, 2011:
• provides for rights and interests under present and future receivables
• lays down rights and obligation of various parties to a contract for
assignment of receivables
• Relationship
• special provisions for small or micro enterprise Assignors

6. FACTORING IN ICICI BANK
• ICICI bank's factoring performs an important trade finance.
• Flexible financial solution
• Factoring relies on the financial strength, creditworthiness of customers.
• Improves customers cash flow
• Improves customers credit rating
• Reduces customers credit risk
• Efficient management of customers receivables

7. SERVICES
• Domestic factoring - discounting of non-LC backed domestic invoices/
bills
• Export factoring - discounting of non-LC backed export invoices/bills

8. TRADE SERVICES
• Offers a wide range of trade services designed to meet a range of short term to medium term trade
financing requirements,
• that your company can seize new business opportunities whenever they arise.
• Customers can benefit from our streamlined processes based on a sound technological backbone
• designed to provide best in class service levels, and reduce the hassles associated with trade
transactions.
• Whether you are an importer or exporter, our correspondent network of over 381 foreign banks across
57 countries,
• foreign currency Nostro accounts in more than 30 currencies, will ensure that we meet almost all your
international trade requirements.

9. IMPORT AND EXPORT

10. IMPORTS
• Letter of Credit
• A Letter of Credit (LC) is a written undertaking issued by a bank on behalf of its customer in favour
of the beneficiary to pay a certain sum of money against presentation of stipulated set of documents
that comply with the terms of the LC.
• the creditworthiness of the bank replaces that of the customer.
• amends and pays sight and usance letters of credit.
• Customers can benefit from our expertise in structuring the instruments in the best manner.
• Import Bill Collections
• Documentary Collections are a common and flexible mode of payment for goods purchased from
domestic or overseas suppliers.

11. CONTINUE…
• It involves handling of documents by bank in accordance with the collection instruction
received from remitting bank.
• Customers can rely on our expertise in efficient and prompt handling of Import collection
documents.
• Trade Credit
• Trade Credit is an essential tool for financing your imports.
• address your working capital gap through import financing solutions in foreign currency
through Buyers/ Suppliers Credit at competitive rates.

12. EXPORTS
• Export Finance
• Avail ICICI Bank's export finance services to facilitate cash flow in your business.
• export finance is available both in Indian rupees and foreign currency duly tailor-made to
support your business requirements.
• ICICI Bank's export finance services include both pre-shipment and post-shipment credit.
• Obtain pre-shipment finance in the form of Export Packing Credit to finance purchase or
import of raw materials and processing and packing of goods for export.
• Post-shipment credit finances export sales receivables after you have shipped the goods until
the export proceeds are realised.

13. CONTINUE…
• The ICICI Bank Edge
• Competitively priced
• Quick turnaround time
• Export Pre-shipment Finance
• We provide pre-shipment finance in the form of Export Packing Credit (EPC) to help you to
meet your working capital needs while manufacturing your goods for export.
• We provide Export Packing Credit both in rupee as well as foreign currency at competitive
rates.

14. CONTINUE…
• Export LC Advising
• Benefit from timely receipt, expert advice and a wide international network when your Export Letter
of Credits are advised through ICICI Bank.
• Export Letter Of Credit Confirmation
• Benefit from the credit strength of ICICI Bank for confirmation of your export Letters of Credit
received from foreign banks.
• With ICICI Bank's confirmation services, you can eliminate the foreign bank risk and country risks
from your export transaction.
• Once we add our confirmation to the Letter of Credit, you are assured of payment, subject to non-discrepant
documents, irrespective of non-payment by LC opening bank.

15. CONTINUE…
• Export Bill Negotiation
• We negotiate your export bills drawn under Letter of Credit, if the documents are found to be strictly
in terms with the Letter of Credit conditions.
• We offer this at competitive rates both in rupee as well as foreign currency with world-class service
standards.
• Negotiation under LC is much simpler than availing regular working capital limits from a bank.
• Purchase/Discounting of Export Bills
• Do not worry when your exports are not covered under Letter of credit.
• Against sanctioned credit limits, we can pay you the discounted value of your invoice, immediately
on shipment.

16. CONTINUE…
• We offer this at competitive rates both in rupee as well as foreign currency and with world-class
service standards.
• Export Bill Collection
• Concentrating your Documentary Collection activities with ICICI Bank, you can eliminate
many of your exporting hassles.
• Not only will your international banking become much more uniform,
• you can experience fewer delays in receiving payment,
• effortlessly access collection information details,
• gain increased control over export receivables and have an efficient cash flow management.

17. DIRECT EXPORT FACTORING

18. GUARANTEES
• While entering into a large-scale business transaction or
• carrying out a high-value project, a company is often required to submit a Bank Guarantee.
• In an increasingly challenging business environment,
• a bank guarantee is an effective way of securing performance and payment.
• We provide world-class bank guarantee services and in this way also assure your clients of
your strong commitment.

19. CONTINUE…
• Some of the variants of guarantees offered include:
• Performance Guarantees
• Financial Guarantees
• Bid Bond Guarantees
• Advance Payment Guarantees
• Deferred Payment Guarantees

20. INLAND TRADE
• ICICI Bank offers comprehensive range of inland trade services.
• From financing your suppliers/vendors to the financing of your dealers,
• we structure and customise solutions suited to your specific business requirements.
• Inland Letter of Credit Issuance
• issue Inland Letter of Credit on your behalf that gives you the advantage with your suppliers.
• experts advise you in drafting the Letter of Credit terms and conditions so as to protect your
interests.

21. CONTINUE…
• Inland Bill Discounting (Under Letter of Credit)
• provide finance by discounting your inland bills drawn under letters of credit,
• if the documents are found to be strictly in terms with Letter of Credit conditions and on
receipt of acceptance from the Letter of Credit issuing bank.
• at competitive rates and maintain the best service standards at all times.
• Inland Bill Discounting (Not under Letter of Credit)
• We provide financing for your bills drawn on documents against acceptance terms, to the
extent of your sanctioned credit limits to help improve your cash flows.

22. CONTINUE…
• Bills for Collection
• By routing your inland bills through ICICI Bank, you experience fewer delays in receiving
payments,
• receive customised MIS that is integrated to your ERP systems,
• gain increased control over your trade receivables and efficient cash flow management.

23. REMITTANCES
• Inward Remittance - Wire Transfer Instructions
• ICICI Bank's Wire Transfer Instructions is one of the easiest methods of receiving money to
your business account in India.
• select the currency in which the remittance is intended to be received,
• fill in your 12 digit current account number and brief details of remittance and
• forward the wire transfer instructions to your overseas business partner in getting the
remittance.
• remember to advice your overseas partner to send instructions to their Bank with "OUR" in
their charges column when they send the wire transfer.

24. CONTINUE…
• From the time you place the funds transfer request with your local bank, it takes 24-48 banking hours
for the funds to reach our account held with our correspondent bank.
• The Wire transfer will be processed and the money will be transferred to your beneficiary account in 2
hours time
• Outward Remittance
• Whether remittance is towards royalty payment or dividend pay-outs, agency commission, ECB
repayments, etc.
• you can rely on ICICI Bank for accurate and timely payment to the beneficiary.
• Subject to prevailing regulations, with ICICI Bank's state-of-the-art technology and SWIFT tie-ups
outward remittance is only a click away.

25. CONCLUSION
• The concept of an Agent or Factor is spread rapidly across the world.
• Today factoring is being offered as a valuable financial product among major financial
institutions and banks.
• ICICI bank's factoring performs important trade finance.
• A wide range of trade services designed to meet a range of short term to medium term trade
financing requirements.
• ICICI bank guarantee is an effective way of securing performance and payment.