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.

Guideline for Supply Chain Financing

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?

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.

How does SCF benefit suppliers?

Extend payment terms without impacting supplier relationships

Improve working capital and liquidity

Strengthen supply chain resilience

Gain better visibility over payments and cash flow

How Supply Chain Financing Work?

Step 1: Supplier delivers and submits invoices

The supplier completes the order and submits invoices to the buyer for approval.

Step 2: Buyer uploads approved invoices

The buyer reviews and approves the invoices, then uploads them to IFS Capital's platform.

Step 3: Supplier receives the option to sell invoices

Once invoices are approved, suppliers are notified and given the option to request early payment from IFS Capital.

Step 4: Early Payment to Supplier

Suppliers may opt for early payment on approved invoices. Upon request, IFS Capital disburses funds, at a discount of invoiced value.

Step 5: Buyer settles with IFS Capital

The buyer pays IFS Capital the full invoice amount directly on the agreed due date.

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Types of Supply Chain Financing Solutions

IFS Capital offers flexible structures tailored to your supply chain:

Supplier Financing (Reverse Factoring)

Suppliers receive early payment based on the buyer’s credit strength, enabling lower financing costs.

Distributor / Buyer Financing

Buyers or distributors access funding to purchase goods and manage inventory more efficiently.

Payables Financing

Buyers extend payment terms while suppliers continue to receive timely payments.

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Supply Chain Financing vs Invoice Financing

	Supply Chain Financing	Invoice Financing
Initiated By	Buyer (anchor-led)	Supplier
Risks based on	Buyer credit	Supplier/customer credit
Who benefits	Buyer & Supplier	Primarily the supplier
Collections	Buyer pays the financier	Business collects
Financing Rates	Lower, anchored to buyer credit	Based on supplier profile
Use Case	Supply chain optimisation	Cash flow gap

	Supply Chain Financing	Invoice Financing
Initiated By	Buyer (anchor-led)	Supplier
Risks based on	Buyer credit	Supplier/customer credit
Who benefits	Buyer & Supplier	Primarily the supplier
Collections	Buyer pays the financier	Business collects
Financing Rates	Lower, anchored to buyer credit	Based on supplier profile
Use Case	Supply chain optimisation	Cash flow gap

Many Malaysian businesses use both: supply chain financing in Malaysia for key buyer relationships, and invoice financing for everything else.

Who Can Apply

Buyers (Anchor Companies)

Established companies with strong credit profiles (Sdn Bhd, Bhd, GLC, or equivalent)
Regular procurement from a supplier network
Clear invoice approval processes

Suppliers

Registered business in Malaysia
Active trade relationship with the anchor buyer
Valid, buyer-approved invoices and a track record of completed deliveries

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Why Choose IFS Capital for Supply Chain Financing

IFS Capital combines deep trade finance expertise with practical execution to support your supply chain.

20+ years of trade finance experience in Malaysia
Licensed and regulated financial institution
Structured onboarding and dedicated support
Flexible solutions aligned to your supply chain
Fast funding once operational

We deliver practical, scalable financing solutions to strengthen working capital and support growth.

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Industries Covered

IFS Capital supports a wide range of industries in Malaysia:

Manufacturing & Trading

Optimise procurement and production cycles with improved liquidity.

Construction & Engineering

Support subcontractors and suppliers with early payment.

Logistics & Supply Chain

Ensure continuous operations across distribution networks.

Oil & Gas Services

Manage large contracts with extended payment structures.

Retail & Wholesale

Strengthen supplier networks and inventory flow.

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Frequently Asked Questions

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.

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?

Suppliers can receive up to 100% of the approved invoice value, depending on programme structure.

Note: 100% of approved invoice value is subject to standard transaction/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 for suppliers?

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

What are the benefits for buyers?

Buyers can extend payment terms while maintaining strong supplier relationships.

Is supply chain financing suitable for SMEs?

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

How quickly can payments be processed?

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

What does it cost?

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

Which industries does IFS Capital support?

Manufacturing, trading, construction, engineering, logistics, oil and gas, retail, wholesale, and technology and professional services.

Supply Chain Financing

What is Supply Chain Financing?

How does SCF benefit suppliers?

How Supply Chain Financing Work?

Step 1: Supplier delivers and submits invoices

Step 2: Buyer uploads approved invoices

Step 3: Supplier receives the option to sell invoices

Step 4: Early Payment to Supplier

Step 5: Buyer settles with IFS Capital

Types of Supply Chain Financing Solutions

Supplier Financing (Reverse Factoring)

Distributor / Buyer Financing

Payables Financing

Supply Chain Financing vs Invoice Financing

Who Can Apply

Buyers (Anchor Companies)

Suppliers

Why Choose IFS Capital for Supply Chain Financing

Industries Covered

Manufacturing & Trading

Construction & Engineering

Logistics & Supply Chain

Oil & Gas Services

Retail & Wholesale

Speak to a Supply Chain Financing Specialist

Frequently Asked Questions

What is supply chain financing?

How is supply chain financing different from invoice financing?

How much funding can suppliers receive?

Is supply chain financing a loan?

Who qualifies for supply chain financing?

Does supply chain financing require collateral?

What are the benefits for suppliers?

What are the benefits for buyers?

Is supply chain financing suitable for SMEs?

How quickly can payments be processed?

What does it cost?

Which industries does IFS Capital support?