Operational Performance of Factoring Companies in India:A Study of SBI Global Factors and Canbank Factors

The factoring is a financial service provided by the factoring institutions for financing the account receivables of a firm where business sells its invoices or account receivables to a third party called factor at a certain discount. The objective of this paper was to evaluate the operational performance of Indian Factoring Companies with special reference to SBI Global Factors and Canbank Factors. The operational performance of the Canbank Factors and SBIGFL has been analyzed on the basis of various indicators like branch expansion, number of employees, turnover, total income, total expenditure, debt purchase outstanding, advance outstanding, collection, non-performing assets and profit after tax. To calculate the performance of factoring companies Mean, Compound Annual Growth Rate, Annual Growth Rate and Coefficient of Variation has been used. The analysis of operational performance revealed that SBI Global Factors is better in turnover, total income, debt purchase outstanding, advance outstanding and collection than that of Canbank factors. SBI Global factors showed negative performance in net profit, expenditure and non-performing assets management.