K Reddy, owner of a micro enterprise in Pune, has pending receivables of over Rs. 1 crore from his buyers. The relationship was quite robust until the end of 2012, when the orders started drying up and payments started getting delayed. Reddy, however, hung onto his buyers even as the credit cycle started getting delayed from the normal 45 days to about four months. He, however, never thought about approaching an entity called factors because he is not aware of their existence.

Source - http://www.thehindubusinessline.com