ECGC PLANS TO SET UP FACTORING SERVICES ARM

Export Credit Guarantee Corporation of India (ECGC) plans to setup a subsidiary to offer full-fledged factoring services for exporters. The maturity factoring scheme currently offered by ECGC addresses the needs of exporters to avail themselves of pre finance (advance ) on the receivables for their working capital requirements. This requires ECGC to have a bank partner, but with an independent subsidiary the corporation would be able to offer finance as well as insurance.