Section 2(j) in The Factoring Regulation Act, 2011
(j)"factoring business" means the business of acquisition by way of assignment of receivables of assignor for a consideration for the purpose of collection of such receivables or for financing, whether by way of making loans or advances or otherwise, against such assignment, but does not include-(i)credit facilities provided by a bank or a non-banking financial company in its ordinary course of business against security of receivables;(ii)any activity as commission agent or otherwise for sale of agricultural produce or goods of any kind what so ever or any activity relating to the production, storage, supply, distribution, acquisition or control of such produce or goods or provision of any services.
