The Reserve Bank of India (RBI) has granted Profectus Capital Private Limited (PCPL), an NBFC supported by Actis, a leading global private equity fund, the Certificate of Registration (CoR) required by the Factoring Regulation Act, 2011. It is among the first few NBFCs to be granted the CoR. By reaching this milestone, PCPL can offer factoring services and better assist MSME clients.
To enhance their working capital management, grow their businesses, and obtain short-term financing for operations, Profectus Capital intends to provide their clients with prompt and effective factoring services. The organisation will keep concentrating on a few specific manufacturing and service sectors through its cluster-based lending strategy.
Profectus Capital Private Limited’s Executive Director and CEO, K V Srinivasan, stated: “We have been at the forefront of offering financial solutions to MSMEs across India. We are thrilled that the RBI quickly approved our application. With this permission, we can expand our consumer base and penetrate our current markets.”
He added, “Due to the inclusion of NBFCs, we anticipate a considerable evolution in the factoring market over the next two years. We also anticipate that MSMEs will considerably profit from an immediate increase in their cash flows at a relatively low cost.”
Focusing on corporate purchasers with ratings of BBB and higher, Profectus Capital intends to provide factoring services to a market with a sizable unmet need. The cost of financial support would change depending on the risk profile of the companies receiving it.
