Factoring

Factoring

Factoring is a short term loan that provides liquidity to the business immediately and enables the business to increase its turnover in the form of us buying your accounts receivable as you will not have to wait till the end of the credit term for payment from your customers.

IFS will give you cash advancement of up to 90% against your receivables within 24 hours (on a business day) after you have submitted invoices and other relevant trade documents to IFS.

The factoring facility is applicable to both domestic and international sales and can be used by all kinds of business, whether you are traders, manufacturers or service companies, such as:

  • Traders : for all kinds of goods.
  • Manufacturers : for electronics, packaging, automobile parts, plastic products, etc.
  • Services : advertising agency, security guard, manpower supply, etc.

Advantages to Your Business

  1. Increase the cash flow of your business immediately.
  2. Collateral is not required to guarantee the factoring facility.
  3. Interest rate is competitive and comparable to the commercial banks.
  4. It is fast and convenient as you can receive cash advancement within 24 hours (on a business day).
  5. The expenses from factoring transactions can be recorded in full for tax deduction.
  6. IFS provides debtors administration and cheque collection services which relieves you of the time-consuming tasks of sales ledgering and credit management.

Factoring for Domestic Business

  1. Seller delivers goods or services to the domestic buyer in accordance with the agreed purchase order.
  2. Seller submits all commercial documents to IFS for cash advancement.
  3. IFS will give you cash advancement of up to 90% of the invoice value within 24 hours (of a business day) after you submit the invoices and other trade document to IFS.
  4. After buyer makes payment to IFS upon due date of invoices, IFS will refund the remaining amount after deducting the interest, factoring charge and any other miscellaneous charges to you.

Factoring For Export Business

  1. Seller delivers goods or services to the overseas buyer according to the agreed purchase order.
  2. Seller submits all commercial documents including export documents to IFS for cash advencement with out waiting for the goods to arrive at the customer's place.
  3. (T) will give you cash advancement of up to 90% of the invoice value within 24 hours (on a business day) after you submit the invoices and other trade document to IFS.
  4. Buyer makes payment to IFS upon due date of invoices.
  5. IFS will refund the remaining amount after deducting the interest, factoring charge and any other miscellaneous charges.