Factoring Solutions - Eligibility and Documentation

Factoring Solutions are offered to the following type of concerns

• Sole Proprietorships
• Partnerships
• Private Limited Companies

Other criteria

• The entity should be in operation for the last 3 years
• The entity should have generated profits during the last 2 years and should satisfy our internal credit parameters.
• The concern must have a positive tangible net worth.

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Proof of identity of the Sole Proprietorship Firm (any one of the following):

• Sales/VAT/Service tax/Excise registration OR
• Registration under Shops and Establishment Act OR
• PAN Card/IT Return of the concern OR
• Water/Electricity/Municipal tax bill in the name of the concern OR
• MAPIN Card in the name of the concern

Proof of individual identity to be submitted for the sole proprietor (any one of the following):

• Passport*** OR
• Photo PAN card OR
• Voter's Identity card OR
• MAPIN Card OR
• Driving Licence

Proof of Residence Address of sole proprietor (any one of the following):

• Passport*** OR
• Voter's ID OR
• Driving Licence OR
• Ration Card OR
• Society outgoing bill OR
• Life Insurance Policy OR
• Electricity bill OR
• Telephone (Land/Mobile) Bill

PAN Card/PAN allotment Letter/Form 60 of the concern

*** Only Passport can be used as both Proof of Identity and Proof of Residence.

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Proof of identity of the Partnership firm (any one of the following):

• Sales/VAT/Service tax/Excise registration OR
• Registration under Shops and Establishment Act OR
• PAN Card/IT Return of the concern OR
• Water/Electricity/Municipal tax bill in the name of the concern OR
• MAPIN Card in the name of the concern

Proof of individual identity to be submitted for all partners (any one of the following):

• Passport OR
• Photo PAN card OR
• Voter's Identity card OR
• MAPIN Card OR
• Driving Licence

Proof of residence address to be submitted for all partners (any one of the following):

• Passport OR
• Voter's ID OR
• Driving Licence OR
• Ration Card OR
• Society outgoing bill OR
• Life Insurance Policy OR
• Electricity bill OR
• Telephone (Land/Mobile) Bill

Partnership Deed

PAN Card/PAN allotment Letter/Form 60 of the concern

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Proof of identity of the Private Limited Company (any one of the following):

• Sales/VAT/Service tax/Excise registration OR
• Registration under Shops and Establishment Act OR
• PAN Card/IT Return of the concern OR
• Water/Electricity/Municipal tax bill in the name of the concern OR
• MAPIN Card in the name of the concern

Memorandum & Articles of Association

Certificate of Incorporation

Board Resolution

Copy of annual return establishing the shareholding pattern

Proof of individual identity to be submitted for all the authorised signatories, all principal shareholders (with more than 10% shareholding) and at least 2 Directors (including the Managing Director) (Any one of the following)

• Passport OR
• Photo PAN card OR
• Voter's Identity card OR
• MAPIN Card OR
• Driving Licence

List of Directors

Copy of Form 32 filed with ROC

PAN Card/PAN allotment Letter/Form 60 of the concern

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In addition to the documents on identity and other details of the concern, the following documents are also required:

Pre - Approval

• Profit & Loss and Balance Sheet for the last three years audited by a C.A.
• Information on projected sales to the customers.

Post - Approval

• Personal guarantee of the promoter directors along with their certified net worth statements is to be provided.
• Net worth statements of the promoter directors.
• Letter of disclaimer from existing charge holders for the factored debt*.
• Letters to be sent to your customers by you instructing them to route payments through HSBC**.
• Demand promissory note in favour of HSBC.
• Board resolution of the company or Partnership letter or declaration from the sole proprietor providing a list of authorised signatories.
• Execution of a Factoring agreement and acceptance of terms detailed in the Facility Advice Letter.
• Power of Attorney in favour of HSBC.

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