Invoice factoring is a way for businesses to fund cash flow by selling their
invoices to a third party (a factor, or factoring company) at a discount.
Fuji Finance Indonesia provides Invoice factoring services to its customers.
The clients enter into an agreement with Fuji Finance Indonesia whereby
Fuji will manage the clients' sales ledger and credit control on an ongoing basis
for a fixed period (the term of the factoring contract, typically 24 months).
In return, Fuji Finance Indonesia will provide some funds upfront when the clients
send an invoice to a customer- typically 70-85% of invoice value.
When the clients' customers pay, Fuji Finance Indonesia will collect the debt plus
its interest and release the remaining balance available to the clients.
Advantages of factoring
For a fee, Fuji Finance Indonesia can help to unlock funds tied up in unpaid
invoices so that the clients will receive funds without waiting for their customers
to pay. This makes cash flow management easier for the businesses by using