Business Term Financing (BTF) is an unsecured (no collateral needed) business financing product for SMEs to enhance and grow their businesses.

Invoice Financing on the other hand, is a broad concept of financing arrangement where it allows companies to finance their early payment on their sales invoices or sales purchases, for goods delivered and/or services completed. This method of financing is ideal for businesses in need of consistent cash flow or cash upfront, especially if the majority of their transactions are on credit terms.

Business Term Financing (BTF) offers you a financing of up to RM 500,000 with an interest rate of as low as 1.0% per month

There is no collateral required. When your financing is approved it will be credited into the your designated business bank account. Your monthly installment will be ‘P+I’ meaning principal + interest.

For Invoice Financing, we offer solutions that might suit your needs; Accounts Payable (AP) Financing and Accounts Receivable (AR) Financing.
 
With this financing solution, you will have access to our online supply chain financing system, Silk Road, to manage your financing facility with us.

AR Financing is typically meant for financing sales invoices, with your perspective as the Seller.
AP Financing is typically meant for financing sales purchases, with your perspective as the Buyer.

Process Flow
Step 1: Buyer submits a Purchase Order (PO) via Silk Road
Step 2: Seller confirms the PO via Silk Road and proceeds with the delivery of the order
Step 3: Seller submits a Delivery Order (DO) and invoices via Silk Road
Step 4: Buyer confirms the submitted documents via Silk Road
Step 5: Seller receives disbursement from Funding Societies based on the approved terms
Step 6: Repayment to Funding Societies based on the approved terms (notified or non-notified)*

Notified :
Buyers are notified of the arrangement between Seller and Funding Societies.
Thus, Buyer pays Funding Societies as per approved terms.

Non-notified (applicable to AR Financing only) :
Buyers are not notified of the arrangement between Seller and Funding Societies.
Thus, Buyer pays Seller as per invoice terms, then, Seller pays Funding Societies as per approved terms.

In the case of Business Term Financing (BTF), there is a flexible financing tenure of up to 18 months. This is calculated based on your financing amount and repayment capability.

However,  with Invoice Financing, you can apply for a financing tenure of up to 120 days. 
Depending on the nature of your financing, you could apply for a tenure of 30, 60, 90, or 120 days.

If this is your first time with us, here is a run-through on the application process.

1. Complete the application form.

2. Prepare the following documents to support your application:

• Company Registration Forms

• Copy of all Director(s) NRIC/Passport

• Latest 6-months Bank Statement

• Latest Audited Accounts & Management Accounts (if available)

We will reach out to you shortly after your application.
Should there be a need for additional documents/information, we will request those accordingly.

Just like any other financing product, the following fees and charges will be applicable: 

Business Term Financing 

Utilisation Fee: 4% of the approved financing amount, deducted upon disbursement. 

Invoice Financing

1. Application / Registration Fee: Waived for selected financing products

2. Facility Fee / Up-Limit Fee: Up to 2% of the approved/increased limit of the financing facility (applicable for revolving only)

3. Origination Fee / Utilisation Fee: Up to 2% of the approved financing amount, deducted upon disbursement (depending on tenure)

4. Legal Stamping Fee: 0.5% of the approved financing amount 

5. Variation Fee: Up to RM 500 per variation for any issuance of supplementary letter of offer and/or renewal of revolving financing facility

Please take note that the above are the common fees/charges of Invoice Financing which serves as a guide, varying from product to product and subject to change from time to time.
For more accurate and updated fees/charges, kindly check with us. 

f you are late in making your repayments, the following fees/charges will be imposed:

Business Term Financing

1. Late Penalty Fee: RM500 per repayment cycle

2. Late Interest Fee: 0.1% per day (non-compounded) on the amount in arrears

Invoice Financing

1. Late Penalty Fee: RM 250 per 7 calendar day

2. Late Interest Fee: Up to 0.1% per day (non-compounded) on the amount in arrears