Equipment leasing is a contract between the Lessor (IFSI) and the Lessee (the Equipment User) for hire of a specific asset selected by the Lessee from a manufacturer or supplier.

The Lessor retains the ownership of the asset during the term of contract and the Lessee has the exclusive use of the asset by paying a monthly rental fee over a fixed period of time.

Upon expiry of the Lease, the Lessee can purchase the equipment from the Lessor at an agreed price, taking into account the rentals paid during the Lease term, or to renew the Lease at a predetermined lower monthly rental fee.

The Factoring facility can be used by any company that sells on credit and is applicable for all kinds of business whether you are in the business of foodstuffs, textiles and garments, chemicals, machinery and building materials, advertising or ship repair services. Factoring is especially useful for small and medium sized companies, which require working capital in order to expand.

The Factoring facility is applicable to both domestic and export sales. IFS will first assess your customers, then on the sales volume and other aspects of your business. You are usually required to inform your customers of the factoring arrangement so that payment can be made directly to IFS.

After you have delivered your goods or services to your customers, you will submit the relevant invoices, purchase orders, delivery orders/receipts and collection bills to IFS. We will then make the initial cash advances against the receivables to you. You will also receive statements of account, debtors’ aging and collection reports regularly.

Rates vary according to the volume of the business, the average transaction size, your customers’ profile, etc. Basically our fees include:

• Factoring charge – A fixed percentage amount will be charged on the gross invoice value for each invoice factored. This is a service charge for the credit protection provided and the management of the sales ledger as well as collection services.
• Initial payment charge – This is the interest charge on the cash advances made to you. The interest charge is a spread above the prevailing overdraft rate and is charged on the actual amount of funds in use.