SIDBI : MSME RECEIVABLE FINANCE SCHEME (MSME RFS)
Objective & Purpose:
To mitigate the problem of delayed payments to MSMEs in respect of their
credit sales to large purchaser companies by offering finance against bills of
exchange/ Invoices arising out of such sales.
The scheme covers discounting of bills of exchange/invoices arising out of
sale of indigenous components / parts / sub-assemblies /accessories /intermediates
by an MSME unit. Services provided by an enterprise in the services sector
(eligible service provider) to purchaser companies are also covered.
The scheme helps the MSMEs in
1) Quicker realization of receivables.
2) Discounting at competitive rates.
3) Efficient Cash Management.
Eligible customers:
Limits are sanctioned to:
(a) Well-performing Large Corporates / Purchaser Companies with sound
financials for covering their purchases of components / sub-assemblies / parts /
accessories and services obtained from MSMEs.
(b) MSME sellers for early realization of dues from large Corporates by
discounting the bills.
Eligibility criteria:
(a) Either the Purchaser or Seller needs to qualify as SME (manufacturing /
service sector unit).
(b) Eligibility parameters include satisfactory financials viz. Turnover, net
worth, profit, positive cash flow, liquidity position, external / internal
credit rating, security, etc.
