Does the Government support export factoring for MSME exporters?
As of the Government's February 2026 summary, yes. Under the Export Promotion Mission, Micro, Small and Medium Enterprise (MSME) exporters of goods on a notified list get interest support on the cost of export factoring. It runs through registered factoring firms, covers recourse and non-recourse factoring in rupees or freely convertible currency, and has a ceiling per Importer Exporter Code.
What export factoring is
The Government describes it as selling your export receivables to a financial institution, so you receive cash straight away. It gives working capital and helps manage payment risk.
What the support covers
- MSME exporters of goods under a notified list of six-digit tariff lines.
- Services from registered export factoring firms, which are Non-Banking Financial Companies.
- Both recourse and non-recourse factoring.
- Factoring in Indian rupees or freely convertible foreign currencies.
- Interest support on the factoring cost, with a ceiling per Importer Exporter Code.
Recourse or non-recourse
With recourse, you carry the risk if the buyer does not pay. With non-recourse, the factoring firm carries it. Both are supported, so choose on who you want holding the buyer risk.
Check your goods first
Support applies only to the notified tariff lines. Look up your six-digit code against the current notified list, and check the current DGFT notice, before you sign a factoring agreement.
What Senseible does here
Senseible does not factor invoices or lend. It turns fuel and power bills into a dated emissions record, which a European Union (EU) buyer or a lender can read. Senseible does not lend. It connects verified records to its financing partners, the partner decides, and nothing is guaranteed.
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Last reviewed 2026-11-06.