The Factoring Regulation Act: Boosting MSME Growth in India

India’s micro, small, and medium enterprises (MSMEs) are the backbone of its economy, contributing significantly to GDP and employment generation. However, these enterprises often face challenges in accessing timely and adequate financing, hindering their growth potential. The Factoring Regulation Act, enacted in 2011, aims to address this critical issue by creating a conducive environment for factoring, a financial instrument that can provide much-needed liquidity to MSMEs.