Profectus Capital receives a CoR from RBI under the Factoring Regulation Act, of 2011

 

Mumbai: "Profectus Capital Private Limited" (PCPL), an 'NBFC' backed by Actis, a global private equity firm, has received the 'Certificate of Registration' (CoR) under the Factoring Regulation Act, 2011 from the Reserve Bank of India (RBI). It is among the first few NBFCs to be granted the CoR. This milestone will enable PCPL to undertake factoring services to serve MSME customers better.

"Profectus Capital" plans to offer their customers timely and efficient factoring services to improve their working capital management, boost their businesses, and receive short-term finance to fund operations. The company will continue to focus on select manufacturing and service sectors based on its cluster-based lending approach.

"Profectus Capital" plans to focus on BBB and above-rated corporate buyers and offer factoring services to a segment that has a large unfulfilled demand. Pricing of financial assistance would vary with the risk profile of the assisted entities.

Mr. K V Srinivasan, Executive Director, and CEO, of Profectus Capital Private Limited, said, “We have been at the forefront of providing financial solutions to MSMEs across India. We are excited about the quick approval of our application from the RBI. This approval will enable us to penetrate deeper into our existing markets and widen our customer base. We expect the factoring space to evolve significantly over the next two years, owing to the inclusion of NBFCs, and expect MSMEs to benefit significantly from an immediate improvement in their cash flows at a very low cost".