Turn Your Invoice / Account Receivables Into Cash
Factoring can provide you with the solution to overcome your cash flow constraints as you seek to grow your business. It can be used for companies in all types of businesses who have funds tied up because they sell to customers on credit terms.With factoring, you will not have to wait till the end of the credit term of payment from your customers.
IFSI can provide you with cash advancement of up to 80% against your receivables purchased by us. The balance is held as a contingency reserve and refunded only after the receivables have been collected. IFSI will take over the task of monitoring and collecting the receivables as and when they fall due. Our clients are kept informed of the status of the account through payment reports, statement of accounts, etc.
IFSI factoring facility can apply to both domestic and export sales. For exports, collections are normally handled by our overseas affiliates.
How Much Does Factoring Cost ?
The cost will depend on some key factors such as business volume, average transaction size and customer profile amongst othersThe typical cost incurred from factoring are from the following :
- A facility fee
- Factoring charge – a service fee calculated on the invoice factored
- Interest calculated on advanced amount at an agreed rate per annum
- The client delivers goods/services to the customer
- Copies of invoices, purchase and delivery orders and related documents (if applicable) are submitted by the client to IFSI for factoring
- Verification is done by IFSI with the customer
- Advance payment is made against the invoice
- IFSI will send monthly statement of account to client
- On a need to basis, reminders are sent to the client’s customers
- Customer make payment to IFSI when the invoice payment is due
- IFSI refunds the remaining amount after deducting the interest, factoring charge and miscellaneous charges if any
Key Advantages From Factoring Your Receivables
- Ease your working capital constraints. By assigning your receivables to IFSI, you need not wait for payment from customers granted terms of payments.
- 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.