Surat : The South Gujarat Chamber of Commerce and Industry (SGCCI) organized a seminar on "Export Manufacturing to grow your export business" as part of their SGCCI Global Connect Mission 84. The event aimed to educate entrepreneurs on how factoring can enhance their export operations and mitigate potential risks.
During the seminar, Pramit Joshi, Senior Director at Credlix Company, offered valuable insights into the benefits of leveraging factoring services. He highlighted how factoring acts as a bridge between exporters and importers, ensuring timely payments for exported goods. He explained the typical process where the exporter receives payment from the manufacturer after the product is exported, with the manufacturer then collecting the payment from the importer.
Joshi emphasized the importance of factoring in achieving India's ambitious export target of reaching 1000 crore tonnes by 2030. He pointed out that global data confirms a positive correlation between factoring usage and higher export volumes. He cited China's massive manufacturing exports of 576 billion Euros, compared to America's 100 billion Euros and India's 15 billion Euros, highlighting the potential of factoring to facilitate growth.
The seminar delved into the specific advantages of factoring, such as the guarantee of payment for the seller, facilitated by the factoring company. Additionally, the digitalization of the entire documentation process streamlines the process and saves valuable time. Notably, factoring enables exporters to receive up to 90% of the bill of lading value, significantly improving their cash flow and reducing financial strain.
By organizing this informative seminar, the SGCCI facilitated valuable knowledge sharing on how factoring can equip exporters with the necessary tools to navigate the complexities of international trade, ultimately fostering export growth and economic prosperity.
