How is supply chain financing different from invoice financing?

Supply chain financing is initiated by the buyer and benefits the entire supply chain, while invoice financing is typically initiated by the supplier.

How much funding can suppliers receive through supply chain financing?

Suppliers can receive up to 100% of the approved invoice value, depending on programme structure. This is subject to standard transaction and discount fees.

Is supply chain financing a loan?

No. It is a trade-based working capital solution. Suppliers receive early payment on approved invoices. No new debt is created for either the buyer or the supplier.

Who qualifies for supply chain financing?

Both buyers (anchors) and their suppliers can participate, subject to credit assessment and eligibility.

Does supply chain financing require collateral?

Not in most cases. Financing is based on trade transactions and buyer-approved invoices, not physical assets or personal guarantees.

What are the benefits of supply chain financing for suppliers?

Suppliers receive early payment, improved cash flow, and potentially lower financing costs.

What are the benefits of supply chain financing for buyers?

Buyers can extend payment terms while maintaining strong supplier relationships.

Is supply chain financing suitable for SMEs in Malaysia?

Yes. SMEs benefit significantly when linked to strong anchor buyers.

How quickly are payments processed under supply chain financing?

Once set up, payments are typically processed within one to three business days after invoice approval.

What does supply chain financing cost?

Costs include a transaction fee based on invoice tenor and an administration fee. Full details are provided upfront during consultation with no hidden charges.

Which industries does IFS Capital Malaysia support with supply chain financing?

IFS Capital Malaysia supports manufacturing, trading, construction, engineering, logistics, oil and gas, retail, wholesale, and technology and professional services.

Guideline for Supply Chain Financing

Q: What is supply chain financing?

Supply chain financing is a working capital solution that allows suppliers to receive early payment while buyers extend payment terms.

Overview

What is Supply Chain Financing?

How does SCF benefit suppliers?

How Supply Chain Financing Work?

IFS Capital Malaysia provides a Supply Chain Financing solution that allows eligible suppliers to receive early payment on approved invoices through a fully digital financing platform.

This programme is made available to suppliers through their Anchor Buyer, helping suppliers improve cash flow while continuing to support ongoing business needs.

What is Supply Chain Financing?

IFS Capital Malaysia SME financing solutions

Supply Chain Financing, also known as SCF, is a working capital solution that allows suppliers to receive early payment for invoices approved by their Anchor Buyer.

Instead of waiting until the invoice maturity date, suppliers may choose to request early payment from IFS Capital Malaysia once their invoices have been approved.