Only where factorability is present, this facility is suitable. Factorization is not suitable in the following cases :
where large volume of cash sales take place. engaged in speculative business. selling highly specialised capital equipments or made-to-order goods. where credit period offered to the buyers is more than 180 days. where there is Consignment Sale or 'Sale or Return Arrangements'. where sales are to the sister / associated companies . where sales are to the public at large, etc.