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 Process

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 factoring financing.