EN
IKHTIAR FACTORING AS YOUR COMPANY'S STRATEGIC PARTNER
We are Ikhtiar Factoring Sdn Bhd (IFSB), a fully approved and authorised factoring finance institution company by Bank Negara Malaysia and Malaysia Ministry of Finance. Other than offering a full spectrum of factoring finance solutions, we also offer the most competitive rates which can be tailored to your business’ needs and requirements.
RM 2,000,000,000+
OVER RM2 BILLION FUNDING PROVIDED
1,500+
SUCCESSFUL BUMIPUTRA COMPANIES
22 YEARS
REPUTATION IN THE INDUSTRY
SHARIAH COMPLIANCE
COMPLY WITH SHARIAH LAW
Our Services
We support your company's finances with more than 20 Years of experience
Factoring-i
We advise and provide you with access to the best funding solutions for your business.
Letter of Credit-i
We have the know-how to be the right choice for overseas and domestic purchases.
Bank Guarantee-i
As a financial institution approved and accredited by the Ministry of Finance and e-Perolehan, IFSB can issue performance guarantees.
Financial Letter of Support-i
We can provide a testimonial from a credible third-party that will make your tender application and bidding a lot more competitive.
Frequently Asked Question (FAQ)
We provide working capital financing to companies that have been awarded contracts or projects by the government or government agencies, statutory bodies and GLCs (such as Tenaga Nasional Berhad, Telekom Malaysia Berhad and Petronas).
The services we offer include:
- Bai' Ad Dayn Factoring Notification
- Facility Confirmation (Letter of Credit)
- Al-Kafalah Bank/Financial Guarantee
- Letter of Support
- We also provide end-to-end contract financing services, from the tendering stage up to the delivery of products to the government.
Firstly, the flexibility and effectiveness of factoring as a financing instrument is increasingly gaining traction among the business community in Malaysia and is seen as an alternative to conventional banking facilities. Secondly, Malaysia's continued economic growth has opened up more business opportunities, especially for Small and Medium Enterprises (SMEs). Companies in this group are actually the target in the factoring industry, which aims to help them. It should be remembered and emphasized that factoring is a simple financing tool that can be used as long as there are unhindered receivables.
Factoring is now increasingly seen as an alternative source of financing, as well as a better way to manage working capital. Factoring facilities are able to strategically assist companies, especially SMEs, to expand their businesses. However, these businesses often have little or limited capital, or lack support in terms of fixed assets. As such, traditional banks are often reluctant to provide financing and will only provide limited working capital financing to these companies. In contrast, factoring companies play the role of progressive financiers to fill the gap that cannot be met by traditional banks through the provision of easier access for SMEs to obtain working capital facilities.
Bank loans are very limited in nature and are almost incompatible with the growth of company sales.
The credit limit given today is only suitable for previous sales. Any new contracts obtained by the company will require a time-consuming assessment and usually any existing loans need to be settled before new loans can be granted. Credit issues with CTOS /CCRIS / RAM BASIS such as unpaid credit cards, hire purchase or housing loans are automatically seen as weaknesses of the business owner, even if the amount is small compared to the contract obtained.
As is well known, government contracts are not fixed; and in difficult and uncertain times, there is a possibility that personal debt problems will arise. When directors and owners of the company have problems with credit reporting agencies, the bank will automatically reject the company's loan application. Factoring companies, on the other hand, play the role of progressive financiers to bridge the gap that cannot be filled by traditional banks by providing easier access to SMEs in obtaining working capital facilities.
Yes. Ikhtiar Factoring Sdn Bhd (IFSB) was incorporated on March 13, 2000 to carry out domestic, export and import factoring business as well as equipment leasing. Bank Negara Malaysia (BNM) classifies us as a Non-Bank Financial Institution (NBFI). We are a specialized factoring company focused on financing unconfirmed contract or purchase factoring for government or government-owned companies. The entirety of this company's factoring business is from financing factoring clients who have obtained contracts from the government or GLCs (such as Petronas, Tenaga Malaysia Berhad, Telekom Malaysia and others). In compliance with SPP Bill 10/95 by the Ministry of Finance (MOF), IFSB was approved and recognized by MOF on June 14, 2000 to conduct factoring financing of government or GLC contracts and procurement.
We are the right choice because we have extensive expertise and experience in factoring transactions after decades of providing a range of services and solutions to companies from various industries. We offer creative factoring solutions specially formulated to meet your specific needs. Our rates are competitive with flexible terms, coupled with fast preliminary approval. Our experienced and dedicated financing experts can provide advice and access to the best funding solutions for your business.
Trade financing (Letter of Credit/Performance Guarantee) is a key and important structure for contract financing offered to clients for supply contracts. The absence of trade financing from the structure will result in unmet contract financing needs, especially if it involves overseas suppliers and often, it also involves domestic product suppliers. At IFSB, we have the necessary expertise and offer trade financing services to help business companies meet the performance requirements for government procurement contract financing.
Through our complete spectrum of factoring financing solutions, we can solve the financial problems of our clients and they no longer need to go through the hassle of obtaining their own trade financing facilities from banks, where they will face obstacles and limitations in obtaining them.
We have the approval and recognition from the Ministry of Finance to carry out factoring financing for government or GLC contracts and procurement. This means we can issue our own performance guarantees and clients no longer need to rely on traditional banks to issue BGs.
Since the beginning of its operations, IFSB has grown into a leading factoring finance company in Malaysia that offers products and services that are on par with trade financing offered by banks, but without the hassle that has to be faced in the bureaucratic application process. This competitive edge places us as a progressive leader in this industry. The business community, especially Bumiputera companies, appreciates us because we are able to extend assistance to them when banks are no longer able to provide support and meet their financial needs.
We are the right choice because we have extensive expertise and experience in factoring transactions after decades of providing a range of services and solutions to companies from various industries. We offer creative factoring solutions specially formulated to meet your specific needs. Our rates are competitive with flexible terms, coupled with fast preliminary approval. Our experienced and dedicated financing experts can provide advice and access to the best funding solutions for your business.
We offer creative factoring solutions specially formulated to meet your specific needs. Our rates are competitive with flexible terms, coupled with fast preliminary approval. Our experienced and dedicated financial experts can provide advice and access to the best funding solutions for your business.
IFSB offers creative factoring solutions specially formulated to meet your specific needs. Our rates are among the lowest in Malaysia with flexible terms, and the preliminary approval process involves less bureaucracy and is therefore faster.
On average, we take seven working days to process and provide updates on the status of your application. The issuance of Trade Financing usually takes up to three working days.
No, there are no hidden fees. Any charges and fees will be explained upfront.
Yes, our factoring fee is a flat rate.
You are eligible to apply if you have already obtained a government procurement contract, or are in the process of obtaining one.
Depending on the services you require, you need to prepare the following documents:
Certified true copy of Memorandum and Articles of Association (for limited companies), or Business Registration (for sole proprietorship / partnership).
- Certified true copy of Form 24 and Form 49.
- Company profile, accompanied by attached resume or CVs of company directors and management personnel.
- Photocopies of IC (front and back) of all company directors and shareholders.
- Original copy of contract/purchase order.
- Copy of quotation or proforma invoice from supplier, and relevant catalogs for contract products (if applicable).
- Audited company accounts for the past three years (if applicable).
- Company bank statements for the past three months.
- Copy of registration certificate with the Ministry of Finance.
Copy of current and existing bank facilities (i.e. OD, term loan, LCTR, BG offer letter). *B&G not required for enterprise companies) Please note that approval is subject to all relevant documents submitted to us as well as at the discretion of IFSB. Subject to terms and conditions.
On average, we will take three to five working days to process the application and provide approval. Please note that approval is subject to all relevant documents submitted to us and at the discretion of IFSB. Subject to terms and conditions.
Yes, we will confirm with identifiable personnel or relevant departments responsible for the procurement contract, such as Finance and Procurement, e-Procurement system, Suppliers and other stakeholders.
Customers can make payment via e-Procurement. We will request an acknowledgment of Payment Instructions (Notice of Assignment) in the format of the Ministry of Finance prepared using the client's letterhead. The Payment Instructions will indicate that payment instructions are made to IFSB's account.
We provide working capital financing to companies that have been awarded contracts or projects by the government or government agencies, statutory bodies and GLCs (such as Tenaga Nasional Berhad, Telekom Malaysia Berhad and Petronas).
The services we offer include:
The services we offer include:
- Bai' Ad Dayn Factoring Notification
- Facility Confirmation (Letter of Credit)
- Al-Kafalah Bank/Financial Guarantee
- Letter of Support
- We also provide end-to-end contract financing services, from the tendering stage up to the delivery of products to the government.
Firstly, the flexibility and effectiveness of factoring as a financing instrument is increasingly gaining traction among the business community in Malaysia and is seen as an alternative to conventional banking facilities. Secondly, Malaysia's continued economic growth has opened up more business opportunities, especially for Small and Medium Enterprises (SMEs). Companies in this group are actually the target in the factoring industry, which aims to help them. It should be remembered and emphasized that factoring is a simple financing tool that can be used as long as there are unhindered receivables.
Factoring is now increasingly seen as an alternative source of financing, as well as a better way to manage working capital. Factoring facilities are able to strategically assist companies, especially SMEs, to expand their businesses. However, these businesses often have little or limited capital, or lack support in terms of fixed assets. As such, traditional banks are often reluctant to provide financing and will only provide limited working capital financing to these companies. In contrast, factoring companies play the role of progressive financiers to fill the gap that cannot be met by traditional banks through the provision of easier access for SMEs to obtain working capital facilities.
Factoring is now increasingly seen as an alternative source of financing, as well as a better way to manage working capital. Factoring facilities are able to strategically assist companies, especially SMEs, to expand their businesses. However, these businesses often have little or limited capital, or lack support in terms of fixed assets. As such, traditional banks are often reluctant to provide financing and will only provide limited working capital financing to these companies. In contrast, factoring companies play the role of progressive financiers to fill the gap that cannot be met by traditional banks through the provision of easier access for SMEs to obtain working capital facilities.
Bank loans are very limited in nature and are almost incompatible with the growth of company sales.
The credit limit given today is only suitable for previous sales. Any new contracts obtained by the company will require a time-consuming assessment and usually any existing loans need to be settled before new loans can be granted. Credit issues with CTOS /CCRIS / RAM BASIS such as unpaid credit cards, hire purchase or housing loans are automatically seen as weaknesses of the business owner, even if the amount is small compared to the contract obtained.
As is well known, government contracts are not fixed; and in difficult and uncertain times, there is a possibility that personal debt problems will arise. When directors and owners of the company have problems with credit reporting agencies, the bank will automatically reject the company's loan application. Factoring companies, on the other hand, play the role of progressive financiers to bridge the gap that cannot be filled by traditional banks by providing easier access to SMEs in obtaining working capital facilities.
The credit limit given today is only suitable for previous sales. Any new contracts obtained by the company will require a time-consuming assessment and usually any existing loans need to be settled before new loans can be granted. Credit issues with CTOS /CCRIS / RAM BASIS such as unpaid credit cards, hire purchase or housing loans are automatically seen as weaknesses of the business owner, even if the amount is small compared to the contract obtained.
As is well known, government contracts are not fixed; and in difficult and uncertain times, there is a possibility that personal debt problems will arise. When directors and owners of the company have problems with credit reporting agencies, the bank will automatically reject the company's loan application. Factoring companies, on the other hand, play the role of progressive financiers to bridge the gap that cannot be filled by traditional banks by providing easier access to SMEs in obtaining working capital facilities.
Yes. Ikhtiar Factoring Sdn Bhd (IFSB) was incorporated on March 13, 2000 to carry out domestic, export and import factoring business as well as equipment leasing. Bank Negara Malaysia (BNM) classifies us as a Non-Bank Financial Institution (NBFI). We are a specialized factoring company focused on financing unconfirmed contract or purchase factoring for government or government-owned companies. The entirety of this company's factoring business is from financing factoring clients who have obtained contracts from the government or GLCs (such as Petronas, Tenaga Malaysia Berhad, Telekom Malaysia and others). In compliance with SPP Bill 10/95 by the Ministry of Finance (MOF), IFSB was approved and recognized by MOF on June 14, 2000 to conduct factoring financing of government or GLC contracts and procurement.
We are the right choice because we have extensive expertise and experience in factoring transactions after decades of providing a range of services and solutions to companies from various industries. We offer creative factoring solutions specially formulated to meet your specific needs. Our rates are competitive with flexible terms, coupled with fast preliminary approval. Our experienced and dedicated financing experts can provide advice and access to the best funding solutions for your business.
Trade financing (Letter of Credit/Performance Guarantee) is a key and important structure for contract financing offered to clients for supply contracts. The absence of trade financing from the structure will result in unmet contract financing needs, especially if it involves overseas suppliers and often, it also involves domestic product suppliers. At IFSB, we have the necessary expertise and offer trade financing services to help business companies meet the performance requirements for government procurement contract financing.
Through our complete spectrum of factoring financing solutions, we can solve the financial problems of our clients and they no longer need to go through the hassle of obtaining their own trade financing facilities from banks, where they will face obstacles and limitations in obtaining them.
We have the approval and recognition from the Ministry of Finance to carry out factoring financing for government or GLC contracts and procurement. This means we can issue our own performance guarantees and clients no longer need to rely on traditional banks to issue BGs.
Since the beginning of its operations, IFSB has grown into a leading factoring finance company in Malaysia that offers products and services that are on par with trade financing offered by banks, but without the hassle that has to be faced in the bureaucratic application process. This competitive edge places us as a progressive leader in this industry. The business community, especially Bumiputera companies, appreciates us because we are able to extend assistance to them when banks are no longer able to provide support and meet their financial needs.
Through our complete spectrum of factoring financing solutions, we can solve the financial problems of our clients and they no longer need to go through the hassle of obtaining their own trade financing facilities from banks, where they will face obstacles and limitations in obtaining them.
We have the approval and recognition from the Ministry of Finance to carry out factoring financing for government or GLC contracts and procurement. This means we can issue our own performance guarantees and clients no longer need to rely on traditional banks to issue BGs.
Since the beginning of its operations, IFSB has grown into a leading factoring finance company in Malaysia that offers products and services that are on par with trade financing offered by banks, but without the hassle that has to be faced in the bureaucratic application process. This competitive edge places us as a progressive leader in this industry. The business community, especially Bumiputera companies, appreciates us because we are able to extend assistance to them when banks are no longer able to provide support and meet their financial needs.
We are the right choice because we have extensive expertise and experience in factoring transactions after decades of providing a range of services and solutions to companies from various industries. We offer creative factoring solutions specially formulated to meet your specific needs. Our rates are competitive with flexible terms, coupled with fast preliminary approval. Our experienced and dedicated financing experts can provide advice and access to the best funding solutions for your business.
We offer creative factoring solutions specially formulated to meet your specific needs. Our rates are competitive with flexible terms, coupled with fast preliminary approval. Our experienced and dedicated financial experts can provide advice and access to the best funding solutions for your business.
IFSB offers creative factoring solutions specially formulated to meet your specific needs. Our rates are among the lowest in Malaysia with flexible terms, and the preliminary approval process involves less bureaucracy and is therefore faster.
On average, we take seven working days to process and provide updates on the status of your application. The issuance of Trade Financing usually takes up to three working days.
On average, we take seven working days to process and provide updates on the status of your application. The issuance of Trade Financing usually takes up to three working days.
No, there are no hidden fees. Any charges and fees will be explained upfront.
Yes, our factoring fee is a flat rate.
You are eligible to apply if you have already obtained a government procurement contract, or are in the process of obtaining one.
Depending on the services you require, you need to prepare the following documents:
Certified true copy of Memorandum and Articles of Association (for limited companies), or Business Registration (for sole proprietorship / partnership).
Copy of current and existing bank facilities (i.e. OD, term loan, LCTR, BG offer letter). *B&G not required for enterprise companies) Please note that approval is subject to all relevant documents submitted to us as well as at the discretion of IFSB. Subject to terms and conditions.
Certified true copy of Memorandum and Articles of Association (for limited companies), or Business Registration (for sole proprietorship / partnership).
- Certified true copy of Form 24 and Form 49.
- Company profile, accompanied by attached resume or CVs of company directors and management personnel.
- Photocopies of IC (front and back) of all company directors and shareholders.
- Original copy of contract/purchase order.
- Copy of quotation or proforma invoice from supplier, and relevant catalogs for contract products (if applicable).
- Audited company accounts for the past three years (if applicable).
- Company bank statements for the past three months.
- Copy of registration certificate with the Ministry of Finance.
Copy of current and existing bank facilities (i.e. OD, term loan, LCTR, BG offer letter). *B&G not required for enterprise companies) Please note that approval is subject to all relevant documents submitted to us as well as at the discretion of IFSB. Subject to terms and conditions.
On average, we will take three to five working days to process the application and provide approval. Please note that approval is subject to all relevant documents submitted to us and at the discretion of IFSB. Subject to terms and conditions.
Yes, we will confirm with identifiable personnel or relevant departments responsible for the procurement contract, such as Finance and Procurement, e-Procurement system, Suppliers and other stakeholders.
Customers can make payment via e-Procurement. We will request an acknowledgment of Payment Instructions (Notice of Assignment) in the format of the Ministry of Finance prepared using the client's letterhead. The Payment Instructions will indicate that payment instructions are made to IFSB's account.