FACTORING

Overview

Facing a problem because your clients pay in 30 to 120 days? Need to get paid sooner? Most new and growing businesses can’t afford to wait up 60 or 90 days to get paid. There are supplier and payroll commitments that must be met. But often, securing the funds to meet these obligations is difficult. 

 

If your company or the directors is blacklisted by Ctos and Ccris, they still qualify to apply factoring.

Maximum Advance

50% to 90% of the total invoice amount.

Repayments 

When customer pays the invoice, you receive the remaining 10-50% reserve amount Minus the fees.

Factor Fee 

3% - 6% p/a from outstanding

Speed 

1-3 Days

 
 

How Does Factoring Work

 

Factoring provides you an advance on your invoices, giving you the funds to cover business expenses. The financing transaction is settled once your client pays. It works like this:

 

  1. You deliver product or service to your client

  2. You generate an invoice

  3. The factoring company advances you 80% of the invoice. The remaining 20% is held in reserve. Note that certain industries can qualify for higher advances

  4. Once your client pays the invoice, you get the remaining 20% , less a small financing fee

 

How does Factoring benefit you? 

 

Factoring can provide you with the funds to pay employees and suppliers. It provides predictable cash flow, helping you manage and grow your company. It can benefit you if:

 

  • Your are growing quickly

  • You have been close to missing payroll

  • You have delayed paying critical suppliers

  • Your clients take up to 60 days to pay their invoices

 

There are number of benefits to factoring your invoices. They include:

 

  • Increased liquidity and streamlined cash flow

  • Flexible financing that grows directly with your sales

  • Quick turnaround times

 

Factoring is easy to obtain. Since the factoring company uses your invoices as collateral, the most important prerequisite is that you do business with reliable and reputable government or GLC customers. It is ideal for startups and growing companies that can’t obtain bank financing.

 

Who Qualifies

 

Malaysia-controlled or Malaysian-owned businesses. Many businesses, including newer ones, can qualify for an Factoring loan. However, most of the factoring company that require your customer is govenment or selected GLC company customers. Little documentation is requested, and if your blacklist by Ctos, or your company has a limited or bad track record,  is also quilifies to apply.

 
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