Exceptional performance by the entire value chain at Commercial Factors, the factoring & working capital business arm of Commercial Leasing Company Ltd (CLC), helped the company boost its business performance, branch growth and value of its portfolio.
“It has been a fantastic year for us and achieving a Rs. 3 billion portfolio has marked a golden milestone in the history of Commercial Factors. We are extremely excited about this achievement. This was a result of commitment and dedication of our team,” said Muthiah Harieharann, Head of Factoring, Commercial Leasing Company Limited (CLC), in a statement issued by the company.
Commercial Factors grew by 107% in the total portfolio from Rs.1.4 billion to over Rs. 3 billion while income rose by 78% over the previous year. This was mainly generated through new factoring facilities granted to the SME sector, this increase was led by a corresponding growth in branches which grew by to 40 during the same period.
This provincial expansion adds a large share of the growing entrepreneurs in the small and medium enterprise sector to the ranks of traditional customers of Commercial Factors, bringing the company greater prospects of lateral growth. Although small and medium scale enterprises grow most rapidly, the sector is crippled by difficulties in accessing funds for growth from traditional sources. Factoring offers them a lifeline, particularly as it is based on cash flow capability rather than collateral, the statement said.
“Businesses experience tremendous pressure to minimize finance cost. It is imperative that when they need funds to fuel growth, they borrow at the lowest possible rate.
In addition to the industry best rates, Commercial Factors provides clients with specialized speedy service. In fact, our success is very much that. Service is our edge over competitors,” Mr. Harieharann said.