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Invoice Financing/-i

Invoice Financing/-i

Convert your invoices into upfront cash. Perfect for businesses with credit transactions needing flexible cash flow management.

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Written by Lawrence Lim

Updated over 2 months ago

What is the invoice financing/-i?

	Account Receivable Financing /-i	Account Payable Financing/-i
Definition	Get cash by borrowing against your debtor (money owed to you by customers). Simply pledge your unpaid invoices to us and receive cash upfront.	Secure cash to pay your creditor (money owed by you to suppliers) now by financing your payable invoices. You can settle the repayment later with us.
Example	Your company delivers a product/service to Customer and issues an invoice that is due in 60 days. Instead of waiting for 60 days, you can pledge the invoice and cash out the invoice value upfront. When customer pays the invoice, you repay us based on the approved tenure (up to 90 days), improving your cash flow while still maintaining good relationships with customers.	Your company purchase stocks from a Supplier that has to pay in 30 days. Instead of using your own cash, submit the invoice to us and pay the Supplier on time. Now, your company has extended repayments (up to 90 days) to repay us, improving your cash flow while still keeping strong relationships with suppliers.
Summary	It helps your company to get immediate cash from unpaid invoices faster with your perspective as the Seller.	It helps your companies to pay outstanding bills to suppliers on time without using cash on hand with your perspective as the Buyer.
Margin of Financing	Up to 80% of invoice amount	Up to 100% of invoice amount

*You may apply for both Account Receivable Financing/-i and Account Payable Financing/-i at the same time but the overall qualified amount could split among both products.

What is the process flow?

Account Receivable Financing /-i (ARF/-i)	Account Payable Financing/-i (APF/-i)

Step 1: Onboarding Apply for ARF/-i and onboard with a list of your customers Step 2: Drawdown Submit financing request with unpaid invoice and receive fund within 1 working day Step 3: Repayment Once your customer has made their repayment, you can create a payment schedule with us that aligns with your cash flow cycle *Once you pay off the principal and interest, your credit line will be replenished.	Step 1: Onboarding Apply for APF/-i and onboard with a list of your suppliers Step 2: Drawdown Submit financing request with payable invoice and receive fund within 1 working day Step 3: Repayment You can pay your supplier on time while scheduling payments to us that align with your cash flow cycle. *Once you pay off the principal and interest, your credit line will be replenished.

What is the financing terms?

	Account Receivable Financing/-i & Account Payable Financing/-i
Financing amount	Up to RM 300,000
Tenure	Up to 90 days
Facility available period	12 months from the date of agreement execution
Rate	0.05% per day on the utilised amount
Facility fee	1.5% of the approved limit (one-off)
Utilisation Fee/ Drawdown Fee	Start from 1.25% on the utilised amount

What are the criteria and documents required?

	Account Receivable Financing/-i & Account Payable Financing/-i
Eligibility	Sole proprietorships/ partnerships/ limited liability partnerships/ private limited companies (non-subsidiary of a listed company)/ unlisted public companies/ public listed companies and subsidiaries. Minimum 30% local shareholding by Malaysians Minimum RM 60k revenue per annum Minimum 6 months in operations
Document required	Copy of all Director(s) NRIC/Passport Latest 6 months company bank statements in PDF format Site photos of your business premise with signage, interior design, exterior design and inventory Name list of supplier(s)/customer(s) to onboard with recent transaction invoice respectively

What if I can't make my payment on time?

If you are late in making your repayments, the following fees/charges will be imposed:
- Late Penalty Fee: RM 250 per 7 calendar day
- Late Interest Fee: Up to 0.1% per day (non-compounded) on the amount in arrears

Can I make an early settlement?

Of course! If you choose to settle the financing early, there are NO fees or charges imposed!

What are the Shariah principles adopted for Shariah-compliant Invoice Financing-i?
The Shariah principle used is Commodity Murabahah via Tawarruq arrangement. Tawarruq refers to purchasing of Shariah compliant Commodity with deferred price, then selling it to a third party to obtain cash.

Who can apply for Invoice Financing-i?

Any businesses whose principal activities are Shariah compliant (e.g. not related to tobacco, liquor, gambling etc.) can apply for the financing.
Funding Societies will be conducting Shariah screening to ensure proceeds to be raised are utilised for general working capital requirements and business purposes of the issuer which are Shariah compliant.