Products & Services

How much Does Factoring Cost?

The cost will depend on some key factors such as business volume, average transaction size and customer profile among others.

The typical cost incurred from factoring are from the following :

  1. Facility Fee
  2. Factoring Charge – service fee calculated on the total number of invoices factored
  3. Interest calculated on advanced amount at an agreed rate per annum

Mechanism of Factoring

Domestic factoring skema

 

 

 

 

 

 

 

 

 

  1. The client delivered goods/service to the customer.
  2. Copies of invoices, purchase and delivery orders and related documents (if applicable) are submitted by clients to IFSI for factoring
  3. Verification is done by IFSI with the customer and thereafter, advance payment is made against the invoice.
  4. IFSI will send monthly statements of account to clients and on a need basis, reminde are sent to client’s customers.
  5. Customer make the payment to IFSI when the invoiced payment is due.
  6. IFSI make refund of the remaining amount after deducting the interest, factoring charge and miscellaneous charges if any.

Key Advantages from Factoring Your Receivables

  1. Ease your working capital contraints. By assigning your receivables to IFSI, you need not wait for payment from customers granted terms of payments.
  2. The responsibility of monitoring and collecting your debt is taken over by IFSI for receivables factored by us and you will be kept informed of the status of these receivables.