Factoring Services
Cash Flow Solution to Move your Business Forward
Factoring (also known as Invoice Financing) is a highly flexible and efficient cash flow solution for SMEs.
It improves your cash flow by quickly turning accounts receivable into working capital. Don’t let long credit terms and slow payment to hold your business back.
Right Funding Option for Both Traditional and Modern B2B Businesses
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.
Safeguard Your Account Receivables
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.
Know more about buyer credit protection
Factoring is NOT a loan
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.
Grows along with Your Business
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.
Reasonable Factoring Cost
The cost structure of Factoring is simple and transparent. With less than 3.5%* 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%, 1.6% factoring fee, 8.5% discount charge and 90 days credit term. The figure is for reference only. Actual advanced ratio, any fees and charges are subject to final approval.
Account Receivables Management
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.
Easy online application
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
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Purchase Order Factoring releases the prepayment pressure in production stage
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.
Know more about P.O. Factoring
Factoring process
3 simple steps to access your funding
Provide a copy of your invoice and relevant documents
Receive cash advance up to 90% of invoice value
YOOV Capital will pay you any remaining balances after deducting the handling fee and invoice payment is settled on or before the due date
Case Studies
Exporter & Manufacturer of Toy
Long credit term no longer holds the business back
William runs a toy export business and owns a factory in Dongguan. The company's annual turnover is over HK$10 mil, with large supermarket chain stores in Europe and America as main buyers. Taking advantage of the rapid development of online sourcing platforms, William's business has grown fast and steady. His high-quality products and punctual delivery have earned reputation among customers that attracted some more larger buyers. However, the payment terms required by the buyers are getting longer and longer that gives pressure on their cash flow. Also the bank is hesitate to increase the credit limit in line with their business growth.
Through the Factoring service provided by YOOV Capital, now William can access to 90% of the invoice value in cash right after the goods are delivered. William can have sufficient funds to expand the factory to increase production capacity, accept new orders and enter new markets with confidence.
YOOV Capital's Factoring service not only easily solved William's cash flow pressure, the invoice collection service has greatly reduced buyer delayed payment situation, saving up William's time and labour force to focus on business development.
- Invoice amount$1,000,000
- Funding amount$900,000
- Payment term90 Days
- Service fee1.50%
- Discount rate8% p.a.
- Total cost (Approx.)$32,753
- Invoice amount$800,000
- Funding amount$640,000
- Payment term60 Days
- Service fee1.50%
- Discount rate8.5% p.a.
- Total cost (Approx.)$20,942
Recruitment Outsourcing Agency
Customized funding solution to meet your financial needs
Thomas is the chief financial officer of the Asia-Pacific region of a recruitment putsourcing agency. The agency’s main business is to provide outsourced personnel recruitment services for large companies such as listed companies, banks and insurance companies. A large amount of monthly cash flow is required to meet salary and MPF contributions, as well as regular operation & admin expenses. As their customers are offered payment terms ranging from 30 to 60 days, the agency has a cash flow gap that limited the business development.
Thomas then started to seek financing solutions. However, due to the fact that the agency did not have any asset as collateral in Hong Kong, the bank was unable to provide sufficient financing to meet the agency's huge monthly expenses.
Finally, Thomas came to YOOV Capital for Factoring service, a customized financing solution is provided according to the business model. By uploading invoices every month, and after verification, 80% of the invoice value will be issued that easily solve the problem of tight cash flow.
Textile and Clothing
Buyer credit protection mitigates bad debt risk
Travis is engaged in manufacturing and exporting business of garment products. His main buyers are large chain stores in Europe and the United States. Most of the buyers are stable and pay their invoices on time for many years.
However, facing the impact of the epidemic in recent years, the market shutdown and the chaotic shipping schedule have caused the entire trade market to collapse. One of Travis's buyers went bankrupt due to the continuous decline in performance, and several outstanding invoices were overdue, which brought Travis into a bad debt crisis.
Fortunately, Travis has already adopted YOOV Capital's Factoring service for some time. His export account receivables are covered by export credit insurance. At the end, Travis was able to claim 90% of the total outstanding invoices as compensation , which safeguarded his business from bad debt.
Factoring cost calculator
Invoice information
Funding amount
- Cash available$90,000.00
- Factoring fee$1,600.00
- Discount fee$628.77
- Total cost$2,228.77
- The factoring cost is only2.23%
The above results are calculated based on maximum advanced ratio 90%, 1.6% factoring fee and 8.5% discount charge. Any outcomes in the above calculation are for reference only. Actual advanced ratio, fees and charges are subject to final approval.
Frequently Asked Questions
Warning: You have to repay your loans. Don't pay any intermediaries.
Enquiry and Complaint Hotline: 2384 6338
Money Lender's License No.: 43/2023