Cash Flow Solution to Move your Business Forward
Factoring is suitable for B2B businesses that offer open account terms of 30-120 days to their buyers or customers. The service covers a variety of industries ranging from manufacturing, trading, logistics companies and marketing agencies to servicing businesses such as recruitment agencies, innovative industries, property management etc. Prepay up to 90% of the invoice within a short time. Factoring allows your business to get paid without waiting for long payment terms.
Buyer credit protection comes with Factoring, your buyers’ creditworthiness will be assessed, and each transaction will be insured by credit insurance companies. Your bad debt risk will be mitigated. Our experienced collection team takes diligent care of your account and reminds your buyers to pay on time, in order to avoid late payments. Also, YOOV Capital as an independent third party to collect invoice payment on your behalf, helps to secure your relationship with the buyer, saves up your time and labor force.
Unlike any SME loan, Factoring will not constitute long-term debt and interest burden, also won’t be reflected on your financial statement. SME loans usually have a maximum limit. After reaching the maximum approved limit, if you need additional funds, you must re-apply for a loan. Factoring is tied to your business, and as your turnover grows, you can access to more cash through your accounts receivable. You don’t have any debt to pay if your buyer pays in full on time, the occupied credit line will also be released.
Factoring is a revolving credit facility. The approved credit limit can be used revolvingly within the contract period. Once your buyer(s) fully settled the invoice on or before the invoice due date, the credit limit will be released. When your business grows, YOOV Capital provides flexibility to top-up the credit limit to help your business to thrive.
The cost structure of Factoring is simple and transparent. With less than 2.88%* of invoice amount as financing cost, you can access up to 90% of invoice value to meet your cash need. No collateral is required. Your funding limit grows in line with your turnover and buyers‘ creditability.
* The Factoring cost is calculated based on maximum advanced ratio 90%, 1.8% factoring fee, P+3.9% discount charge and 45 days credit term. The figure is for reference only. Actual advanced ratio, any fees and charges are subject to final approval. (HSBC’s Current Hong Kong Dollar Best Lending Rate: 5.875% (for reference only))
While the primary benefit of factoring is improving your cash position, it also provides ancillary benefits for your business. YOOV Capital has a comprehensive understanding on your account receivable performance. You can have a better sight on buyer status as well as business planning with the help of our month-end statements and reports.
You can now upload your company documents and information via YOOV Capital online platform for speeding up the credit checking process. Our dedicated sales manager will help to set up the factoring account
Purchase Order Factoring (P.O. Factoring) is an extended service of Factoring. It allows you to access funding up to 40% of purchase order value in production stage, which releases your prepayment pressure and improves your capability to take up larger orders. P.O. Factoring will be switched to Factoring after shipment to maintain a thorough and sufficient cash flow.
1. Provide a copy of your invoice and relevant documents
2. Receive cash advance up to 90% of invoice value
3. YOOV Capital will pay you any remaining balances after deducting the handling fee and invoice payment is settled on or before the due date
Factoring is suitable for most B2B businesses in various industries, such as manufacturing, export, wholesale, human resources, I.T., property management…etc. You should consider apply for Factoring, if:
Factoring application usually takes 2-4 weeks. Our business development manager will work with you closely to process your application in the shortest possible time.
Warning: You have to repay your loans. Don’t pay any intermediaries.
Enquiry and Complaint Hotline: 2384 6338
Money Lender’s License No.: 0227/2024