Surat : Diamond City Entrepreneurs Equipped to Boost Exports and Reduce Risks with Factoring

Surat : Entrepreneurs and exporters in Surat, the “diamond city” of India, gained valuable insights into how factoring can enhance their export activities and mitigate risks during a seminar organized by the Southern Gujarat Chamber of Commerce and Industry (SGCCI).

The seminar titled ‘Export Factoring to grow your Export Business’, led by Pramit Joshi, Senior Director of Credlix Company, shed light on how factoring can address key challenges faced by Indian exporters.

SGCCI President Ramesh Vaghasia acknowledged the difficulties Indian exporters face, including lack of trade credit, buyer pressure for hefty discounts, payment delays, and rising costs. He highlighted the importance of export finance, stating that while large companies utilize around 11% of their financing for exports, for SMEs, this figure rises to 20%, emphasizing the critical role of accessible financial solutions.

Vaghasia further stressed the importance of the SGCCI Global Connect Mission 84 Vision, aiming to equip exporters with knowledge on exporting diverse products to various markets. He emphasized the need for youth leadership in Surat to contribute to Prime Minister Modi’s vision of making India a $5 trillion economy by 2027. He urged entrepreneurs to join Mission 84 and contribute to increased exports.

Pramit Joshi, the guest speaker, emphasized the role factoring can play in achieving the government’s goal of increasing exports from 400 crore tonnes to 1000 crore tonnes by 2030. He explained how factoring bridges the gap between exporters and importers, ensuring timely payments for exporters. Additionally, he highlighted the digital nature of factoring, which expedites the process.

Joshi presented statistics from Global Factoring 2022, demonstrating a correlation between countries with higher factoring usage and greater export volumes. He cited China’s factoring-backed exports of 576 billion Euros compared to India’s 15 billion Euros, emphasizing the potential of factoring to elevate Indian exports.

Joshi elaborated on the benefits of factoring, including guaranteed payments for sellers, a streamlined digital process, and immediate access to 90% of the bill of landing amount, ultimately empowering exporters to focus on growth and expansion.