Rajkumar added, “Uttar Pradesh was also selected for the defence corridor project alongside Tamil Nadu at the same time, but their pace of progress in attracting investments is high. Waiting net 30, 45 or even 60 days for payment from the government could hamper the ability to grow your business. One advantage of factoring invoices billed to the government is that the consistent cash flow provided allows you to bid on, and win, more jobs. To utilise government programmes, the cooperation of district industry centres was also requested. Pros of Factoring Invoices for Government Increased Business. The association members suggested the development of clusters and incubation facilities in the nodal cities.īhelsia members claimed that the state’s manufacturing capacity where Tamil Nadu’s MSMEs’ capacity of 14 lakh tonnes per year can create fabrication and machining goods remains underutilised. Export opportunities must be explored too.”Īlso Read: ECLGS: 1.19 crore MSMEs, other businesses benefitted till June 2022 Rs 3.48 lakh cr loans sanctioned Authorities must help MSMEs get defence and railway component production orders. Factoring your transportation invoices is a quick and easy process that comes with many benefits. Rajappa Rajkumar, President of Bhelsia, said, “It is high time governments stopped spending money on exhibitions and seminars. Representatives from each of the five nodal cities-Chennai, Coimbatore, Trichy, Salem, and Hosur-would be chosen to serve on the core committee whose primary function would be to direct investments. Invoice factoring is a form of alternative financing that involves selling your outstanding invoices to a third party (factoring company) in exchange for cash.

You can solve the cash flow problems created by slow-paying government invoices by using financing. NPCI to acquire stakes in govt’s pet e-commerce project ONDC Receivables factoring accelerates your cash flow.

Government invoice factoring