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Factoring and Receivable Finance

In today’s competitive business environment, companies can be under great pressure to increase sales and profitability. For many firms, selling in an international market place is the ultimate challenge. While the rewards can be substantial, success can also bring its share of problems.

One of the greatest problems facing exporters is the increasing insistence by importers that trade be conducted on open account terms. This often means that payment is received many weeks or even months after delivery. Unsurprisingly, many firms find that giving buyers’ credit terms in this way can cause severe cash flow problems. Further problems can arise if the importer delays payment beyond originally agreed terms or makes no payment at all because of financial failure.

Receivable Finance is a cost effective way of short-term funding for your business. Driven directly by sales receivables, it provides working capital required for supporting daily business operations and reduces reliance on borrowing facilities. You can be assured of prompt payment from your customers with the help of sales ledger administrative service by the Banks, saving valuable time and resources as well as protection against the risk of bad debts for your business.

Receivable Finance, offers flexible financing for your business to react to market opportunities readily. Receivables Service is a credit facility that allows your business to obtain prepayment on your credit sales invoices. You can unlock cash from credit sales invoices to seize business opportunities and finance your growing business.

What are the Benefits of Factoring / Receivable Finance?

- An Improved Cash Flow
With Factoring / Receivables Finance. You can receive up to 90% advancement of your unpaid sales invoices. Hence, it will ease your cash flow constraint, and never miss any opportunity that may arise while waiting for payment from your client.

- An Increased Ability to Expand Your Projects or Contracts
With an additional bank facility, you have an alternative working capital as compared to a straight forward term loan or overdraft. And notably, you will now be assured of sufficient funds in order to venture into additional projects while working on the existing one. Opportunity is hard to come by, and by having factoring/ receivable line set up, you will not worry about missing any opportunity.

- A Reduced Risk of Bad Debt
What could be worse than having bad debts on your book and you having to spend your precious time on collection matters? Customers are banking on lengthy credit terms to be given to them while squeezing their suppliers. If collections turn bad, the business might incur huge losses and you are definitely aware of that. With Receivables Finance and Factoring, you have the option to take on buyer’s default risk management. Leave the worries to credit management company, concentrate on your business operations and let the financier take care against insolvency and bankruptcy of customers.

- An Increased Sales Competitiveness
With assured and better cash flow, your business can gain an edge over its competitors by offering longer credit terms that will allow selling on more competitive sales terms.

- An Increased Ability to Explore New Markets and Customers
Your business might be hampered by the unfamiliarity of a new customer when exploring or entering new markets. Receivables Service with credit cover reduces the risk of non-payment of customers.

Key differences between Master Tactic’s approach vis-à-vis others:

Consultative approach – We want to make sure our clients have optimum return in their investments. By saying this, we mean lowest possible cost of working capital. We truly understand the benefit of having lowest possible cost of working capital to you. We are definitely the expert in negotiating the best possible deal for you. We will make sure you gain access to optimum working capital that you desired.

Economics of scale – As an entrepreneur, definitely you appreciate the economics of scale. Greater profits will be generated should you be able to purchase substantial amount of inventory. Similarly, at Master Tactic, we have the economics of scale to help you achieve the lowest possible cost of capital. We have the volume and what you need to do is to ride with us to enjoy the benefits.

Superior credit understanding – Different people has different perspective on issues around us definitely. We will help you to bridge one of the toughest issues around when exploring the possibilities of gaining additional working capital to your company – understanding the need to gain additional working capital. Leave the job to our consultants as they are experts in this field. We will help you to talk to the potential financiers in “their language” to let them see the potential of the return of your additional working capital. We will assist you in mitigating the risks they might perceived in their eyes, and turn those risks into opportunities.

Alternative finance – At Master Tactic, we believe they are many ways to solve any single issue. Our consultants are experienced and highly qualified finance experts, who will not only consult you on the ways to gain access to additional working capital; we have rich resources of alternative finances. We will share with you ways you might not have heard before. Open to numerous options to companies is our responsibilities.

Transaction Experience

Some of the recent transactions we have been involved in include:

  • Successfully implemented a factoring / receivable finance facility for a local food wholesaler, from an alternative finance source, amount of SGD 1,5 million, when none of the banks seem to be “interested” about their business model. Business revenue has since increased two fold since implementation.
  • Advised a local construction firm, specializing in construction labor supplying, turnover of SGD 10million annually, successfully implemented 4 factoring facilities, all together amounting to USD 7 million (Averagely at 85% prepayment).
  • Successfully advised and implemented a SGD 1,5 million factoring line for a local precision engineering manufacturer, whose customer are from Indonesia. Master Tactic managed to capitalize on our wide network of resources to help the firm to structure this deal, and fully mitigated the export risk.

Next steps
Enjoy the benefits of this hassle-free financing solution with Master Tactic and discover a world of opportunities for you or your business.
To get started, contact our Trade Specialist Team at +6596353366 or drop us an email at This email address is being protected from spambots. You need JavaScript enabled to view it. to find out more.