# Does the Government support export factoring for MSME exporters?

Canonical: https://senseible.earth/answers/export-factoring-support-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.

- [How TReDS invoice discounting works](https://senseible.earth/answers/how-treds-invoice-discounting-works)
- [Does TReDS factoring count as priority sector](https://senseible.earth/answers/does-treds-factoring-count-as-priority-sector)
- [How to qualify for sustainable supply chain finance](https://senseible.earth/answers/buyer-sustainable-supply-chain-finance)
- [Carbon rules for exporters, by market](https://senseible.earth/export)

Sources: [Press Information Bureau, Export Promotion Mission: Building an Integrated Pathway for MSMEs in Global Trade, 24 February 2026 (Export Factoring)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2232079&reg=3&lang=1)

Last reviewed 2026-11-06.