Best Factoring Service Providers in India

Factoring has emerged as an effective working capital solution for Indian businesses facing delayed payments from customers. By selling receivables to a factoring service provider, companies can access immediate funds, improve cash flow, and reduce the burden of collections. In India, factoring is supported by both RBI-regulated platforms and technology-driven private providers, offering businesses multiple options based on their scale, buyer profile, and funding needs.

Below are five of the most reliable factoring service providers in India, known for their credibility, reach, and suitability for MSMEs and mid-sized enterprises.

1. Receivables Exchange of India Limited (RXIL)

RXIL is one of India’s most trusted platforms for invoice factoring and receivables financing. Promoted by SIDBI and the National Stock Exchange, RXIL operates under the RBI’s Trade Receivables Discounting System (TReDS) framework. It enables MSMEs to factor invoices raised on large corporates and government buyers through a transparent, auction-based process.

With multiple banks and NBFCs participating as financiers, RXIL ensures competitive pricing and high regulatory compliance. Its digital workflows and strong governance make it a preferred option for businesses seeking safe and structured factoring.

2. M1xchange

M1xchange is another RBI-licensed TReDS platform offering invoice factoring services to MSMEs. Backed by institutional investors including HDFC Bank, the platform connects sellers, buyers, and financiers in a compliant digital marketplace.

M1xchange focuses on buyer verification, secure transactions, and consistent funding access. It is widely used by MSMEs supplying to established corporates and enterprises that require predictable and regulated factoring solutions.

3. Invoicemart

Invoicemart, developed by Axis Bank in partnership with mjunction, provides factoring services through a bank-backed TReDS ecosystem. The platform enables MSMEs to convert approved invoices into working capital via competitive bidding from multiple financiers.

Known for its strong documentation standards and risk controls, Invoicemart appeals to businesses that prefer conservative, bank-led factoring arrangements with high transparency and compliance.

4. KredX

KredX is a leading private invoice factoring and discounting platform that operates outside the TReDS framework. It connects businesses with institutional and retail investors, offering faster onboarding and quicker fund disbursement compared to traditional platforms.

With its technology-driven approach, KredX is well suited for growth-stage SMEs that prioritise speed and flexibility over regulated exchange-based processes.

5. Credlix

Credlix, backed by Moglix, specialises in supply-chain-focused factoring and invoice financing. It offers collateral-free funding by leveraging transaction data and enterprise procurement relationships.

Credlix is particularly effective for manufacturers and industrial suppliers operating within organised supply chains, where factoring can be aligned with buyer payment cycles.

Conclusion

India’s factoring ecosystem now offers businesses a wide range of options, from RBI-regulated platforms like RXIL, M1xchange, and Invoicemart to fintech-driven solutions such as KredX and Credlix. The right factoring service provider depends on buyer profile, funding urgency, compliance requirements, and operational scale. When chosen strategically, factoring can significantly improve cash flow stability and support sustainable business growth.