Canbank Factors

What Canbank Factors does

Canbank Factors Ltd. is a Bangalore-headquartered, RBI-regulated non-banking financial company (NBFC) incorporated in 1991, operating as a 70%-owned subsidiary of Canara Bank with SIDBI (20%) and Union Bank of India (10%) as co-promoters. The company provides receivables-based working capital financing to Indian businesses, principally MSMEs, through sale bill factoring (purchase of accounts receivable at 80-90% of invoice value), purchase bill discounting, LC discounting, and a Vendor Financing Scheme targeting suppliers of large corporates; complementary add-on products include Corporate Loan Against Property and Loans Against Plant & Machinery. Supporting services comprise computerized sales-ledger administration, debt collection, and credit advisory.

The business is monetized through three fee streams: service charges (0.10%-1.00% of gross invoice value, collected up-front), discount charges on prepayments (collected monthly on actual drawings), and nominal processing charges. Distribution is primarily through a direct branch network spanning South, West, and North India (Bangalore, Hyderabad, Coimbatore, Mumbai, and Ludhiana following four 2024-2025 branch consolidations), supplemented by web-based application and client portals and referral flow from promoter banks. The company maintains the highest CRISIL A1+ short-term debt rating and positions itself as a working capital partner for MSMEs with quicker appraisal, lower margin requirements, and longer credit periods than conventional bank bill discounting.

Name

Canbank Factors

Legal name

Canbank Factors Ltd.

Website

https://canbankfactors.com

Company type

Private

Founded year

1991

Operating status

Operating

Headcount range

101–250 employees

Short description

Canbank Factors is a Bangalore-based, RBI-regulated NBFC and 70%-owned subsidiary of Canara Bank that provides receivables-based working capital financing — sale bill factoring, purchase bill discounting, LC discounting, and vendor financing — primarily to Indian MSMEs across manufacturing sub-sectors.

Ownership category

akta.pro rank

Product category

Factoring and Receivables Financing

NAICS

Credit Intermediation and Related Activities (522), Sales Financing (522220)

SIC

Short-Term Business Credit Institutions (6153)

akta.pro primary industry

Receivables Finance (Factoring, Invoice Discounting, Forfaiting) (FSABAHAD)

akta.pro secondary industry

Invoice Financing & Factoring (FSAKAGAC)

Keywords

• Receivables financing
• Invoice discounting
• Sale bill factoring
• Purchase bill discounting
• Working capital finance

Headquarters

HQ city

Bangalore

HQ country

India

HQ region

Asia

Offices10 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Technology or R&D

Revenue model

1. Factoring Service Charges: Service charges are levied based on work involved and services offered such as sales-ledger maintenance, calculated as a percentage of gross value of invoices factored. Ranges from 0.10% to 1.00% depending on various factors including credit rating and customer base strength. Collected up-front from clients.
2. Discount Charges: Discount charges are levied towards providing instant credit to clients by way of prepayment. Various aspects considered include cost of funds, credit rating of client, and quality of transactions. Collected on monthly basis on actual drawings by clients from their pre-payment account.
3. Processing Charges: Nominal processing charge for work relating to processing of factoring proposals.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels4 records

Core offering

Canbank Factors is a Non-Banking Financial Company (NBFC) that provides factoring and receivables-based financing solutions to businesses. The company purchases accounts receivables arising from supply of goods and services, advancing up to 80-90% of invoice value as immediate credit, and manages sales ledger administration, debt collection, and credit advisory on behalf of clients. Core offerings include Sale Bill Factoring, LC Discounting, Purchase Bill Discounting (reverse factoring), and Vendor Financing Scheme.

Product overview

Canbank Factors is a factoring services company offering a comprehensive suite of cash flow solutions for businesses. The core product portfolio centers on accounts receivable financing: Sale Bill Factoring (domestic receivable purchase at 80-90% of invoice value), LC Discounting, Purchase Bill Discounting (reverse factoring), and Vendor Financing Scheme. Additional offerings include secured loans—Corporate Loan Against Property (CLAP) and Loans Against Hypothecation of Plant & Machinery. Complementary services include sales ledger administration, debt collection, and credit advisory. The company operates as a subsidiary of Canara Bank and primarily serves MSMEs across sectors including automobile components, bulk drugs, chemicals, paper, cable, electronics, and engineering.

Differentiator

Problem solved

Functional benefit

Products and services

• Sale Bill Factoring

Quantifiable outcome

• Up to 80-90% of invoice value provided as immediate credit
• +2 more outcomes

Segments4 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Scale indicators5 records

Expansion highlights4 records

Emerging players

• Finzy: P2P invoice discounting platform that intermediates receivables financing between MSMEs and individual/institutional lenders. Adjacent competitor in the invoice discounting space.
• M1xchange (Mynd Solutions): TReDS-licensed invoice discounting platform offering reverse factoring and receivables financing. Direct overlap with Canbank Factors' Purchase Bill Discounting and Vendor Financing Scheme products.
• RXIL (Receivables Exchange of India): TReDS-licensed invoice discounting platform jointly promoted by SIDBI and NSE. Canbank Factors lists RXIL in its communications, and the platform competes for the same MSME factoring deal flow via digital exchange rails.
• KredX: Digital invoice discounting and receivables financing marketplace serving Indian MSMEs and corporates. Competes with Canbank Factors on speed, digital UX, and reach into Tier-1/2 MSME segments.
• Invoicemart (Axis Bank & mjunction): TReDS platform operated by Axis Bank and mjunction facilitating invoice discounting between MSMEs and corporate buyers. Competes for the same supply-chain financing transactions Canbank Factors targets.

Broad incumbents

• Lendingkart: Fintech NBFC offering working capital and term loans to Indian MSMEs. While not a pure factoring company, it competes for the same MSME working capital wallet share that Canbank Factors targets.
• Canara Bank (MSME vertical): Parent and promoter (70% stake) of Canbank Factors; also the largest competing provider of MSME working capital loans and bill discounting. Internal competition and channel overlap are inherent to the subsidiary's positioning.
• Kinara Capital (formerly IntelleGrow): Fintech NBFC providing working capital and growth financing to Indian MSMEs. Competes with Canbank Factors' broader MSME loan products (CLAP, loans against plant & machinery).

Direct peers

• IFCI Factors (subsidiary of IFCI Limited): One of the earliest Indian factoring NBFCs, now operating under IFCI Limited. Competes head-to-head with Canbank Factors in domestic receivables financing for MSMEs and corporates.
• SBI Global Factors: Subsidiary of State Bank of India offering factoring and receivables financing services. Direct competitor with similar bank-subsidiary structure, public-sector sponsorship, and MSME focus in the Indian market.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights6 records

Customer concentration

• YouTubeyoutu.be/gXxbFtlLXrU
• Facebookfacebook.com/canbankfactors
• LinkedInlinkedin.com/company/canbank-factors-limited

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles7 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Canbank Factors