Stack of invoices with a pen, representing invoice factoring and financing

Invoice Factoring / Financing

Unlock Cash Flow with Flexible Invoice Financing Solutions

80-90% Invoice face value
60-180 Days tenure
0.70-0.875% Per month
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Receivables Liquidity Structure
ISSUED INVOICE

100% Invoice Face Value

Verified Corporate Customer Billing

TRANCHE 1 (80% – 90%)

Immediate Cash Advance

Liquid Funding in 24–48 Hours

TRANCHE 2 (10% – 20%)

Reserve Balance

Released upon Client Settlement

Key features

Disclosed vs. Undisclosed & Recourse Factoring

  • Disclosed (Notification) Factoring: The invoice bears a Notice of Assignment (NOA) instructing the debtor to pay directly into the factor's designated escrow account.
  • Undisclosed (Confidential) Factoring: The end client is unaware of the financing arrangement; the borrower collects payment in trust and remits it to the factor.
  • With Recourse: If the debtor fails to pay after 90–120 days, the borrower must buy back the invoice.

Cash Flow Tranche Mechanics

  • Tranche 1 (Advance - Day 1): The factor disburses 80% to 90% of the invoice face value immediately upon verification.
  • Tranche 2 (Rebate / Reserve - Upon Settlement): Once the debtor pays 100% of the invoice, the factor deducts its factoring fee and releases the remaining 10%–20% reserve back to the business.

Off-Balance Sheet Treatment

Under SFRS(I) 9 / IFRS 9 guidelines, when receivables are sold without substantial risk retention, the transaction can be derecognized as a financial asset, providing cash without inflating gearing ratios.

Direct Lender Matching

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