Products & Services: Factoring

ORIX Factoring Malaysia Sdn. Bhd.

Factoring is essentially the sales of receivables. It provides cash flow solution for further business opportunities as it unlocks your receivables and turns it to cash the fastest way.  

The Benefits

Instant cash flow. Immediate funds at your disposal.
Increase working capital to generate more business.
  • Purchase new stock, meet new orders.
  • Increase your marketing and promotional activities.
  • Explore new business opportunities.
  • Negotiate for better discounts for cash purchases.
No over-reliance on overdraft facility.  
No collateral required.
Professional personnel to assist you in collection to minimize your sales ledger  administration cost.

Why ORIX?
An alternative to traditional bank lines.  
Competitive terms tailored to your requirements.  
A comprehensive product range.  
Dedicated professional staff who are keen to understand your business needs. 
Prompt, personal service.
Low legal and processing fees.

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  • Up to 80% of the value of your invoices as up front cash.  

  • Experienced collection team to monitor your debts.  

  • Regular reports and statements sent to you to ensure you're up to date with debtors' movements.  

  • Monthly Customer Statement of Account sent to your customers to ensure prompt payment.  

MECHANICS
The following is a simple illustration of a factoring arrangement.  
Company with Factoring Facility
1) Receive purchase order on term basis. (e.g. 60 days)
2) Supply goods and/or services (Delivery Order and Invoice)
3) Factors the Invoices to ORIX Factoring Malaysia
4) Advances to ABC Sdn Bhd a maximum of 80% on gross invoices (Normally within 24 hours)
5) Payment (100%) made to ORIX Factoring Malaysia on due date (i.e. after 60 days)
6) Refund balance upon deduction of interest & other charges.

What are the charges involved for factoring?
A Service Fee is payable on the gross amount of invoices factored and interest (termed as Initial Payment Charge) is charged on a daily basis on the amount funded.

Why the need to charge a Service Fee?
A factoring facility provides not only working capital for your company but also professional Account Receivables Management Services.

Is security required?
No. Usually, only director or shareholders' guarantees are required.

How can Factoring be useful to me?
Factoring can help improve working capital, obtain cash discounts for purchases, help manage receivables by close monitoring of the debts and the timely preparation of reports on the status of debts and collection can help aid in decision-making. Moreover, we can assist you in legal proceedings against any of the factored customers in the event of defaults in payment.

  How to apply
Contact ORIX Factoring Malaysia and complete the application form
 - Download the application form PDF fromat* (524kb) / Word format (258kb)
 - Fill in the application form and fax it over 
   to 03-2144 1840

* Required Adobe Acrobat Reader.

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