What is export factoring?

Export factoring is a financing solution that allows exporters to receive early payment on international invoices while outsourcing collections and managing buyer risk.

How is export factoring different from domestic factoring?

Export factoring involves overseas buyers, cross-border risk, and international collections, making it more complex than domestic factoring.

How much funding can I receive through export factoring?

IFS Capital Malaysia advances up to 85% of the invoice value upon shipment, with the remaining balance remitted after successful collection. The exact advance rate depends on the buyer's creditworthiness and country risk.

Does export factoring protect against non-payment?

Yes. IFS Capital Malaysia handles credit protection as part of the arrangement, subject to agreed terms and the specific structure of the facility.

Is collateral required for export factoring?

Generally, no physical collateral is required. Your export invoices serve as the primary security for the financing facility.

How long does it take to receive funding through export factoring?

Funding is typically processed within a few working days after approval.

Can I use export factoring for new overseas buyers?

Yes, subject to the credit assessment of the overseas buyer.

What is the difference between export factoring and a letter of credit?

They serve different purposes. Export factoring is faster and more flexible for ongoing trade relationships, while letters of credit offer stronger bank-backed guarantees but involve more documentation. Many exporters use factoring to reduce their reliance on letters of credit. IFS Capital Malaysia offers both export factoring and letters of credit.

Flexible Working Capital Loans for Malaysian SMEs

What is a Working Capital Loan?

How Working Capital Loan Works

Key Benefits of Working Capital Loan

Working Capital Loan vs Other Financing Options

Who Should Consider This Financing?

Eligibility Criteria

Why Choose IFS Capital for Working Capital Loan

Industries We Serve

Frequently Asked Questions

Apply Now

Finance Machinery, Equipment, and Commercial Assets

Industrial hire purchase in Malaysia is a financing facility that allows businesses to acquire equipment through fixed monthly instalments. You use the asset from day one and own it outright once the facility is fully settled.

IFS Capital is an established financial institution with over 20 years of SME financing experience. We provide industrial hire purchase for ICT equipment in Malaysia. We offer up to 90% financing of the asset cost with a tenure of up to 36 months.

If paying upfront for essential assets hurts your cash flow, this facility can help. It lets you grow without using up your working capital.

Apply Now

What is Industrial Hire Purchase?

ndustrial Hire Purchase is a financing facility that enables businesses to acquire equipment through instalment payments, with ownership transferred at the end of the tenure.

‍It is commonly used to finance:

Industrial and manufacturing equipment
Construction and heavy equipment
Printing, packaging, and processing equipment

Key outcome: You acquire essential business assets without paying the full cost upfront.

Apply Now

How Industrial Hire Purchase Works

Step 1: Asset Selection

Choose the equipment required for your operations.

Step 2: Financing Application

Submit your requirements and supporting documents to IFS Capital.

Step 3: Credit Assessment and Approval

IFS Capital evaluates your financial position, the asset type, and your repayment capacity.

Step 4: Asset Purchase

IFS Capital purchases the asset on your behalf.

Step 5: Instalment Repayment

You use the asset while repaying in fixed monthly instalments over the agreed tenure.

Step 6: Ownership Transfer

Ownership is transferred to your business upon full repayment.

Apply Now

Key Benefits of Industrial Hire Purchase

Preserve Cash Flow

Avoid large upfront capital expenditure, and maintain liquidity for daily operations.

Immediate Asset Utilisation

Start using equipment as soon as financing is approved.

Fixed Instalment Structure

Predictable monthly payments up to 36 months to support better financial planning.

Ownership at End of Tenure

Gain full ownership of the asset after completing repayments.

High Financing Margin

Access up to 90% financing of the asset value, reducing initial capital requirements.

Apply Now

Industrial Hire Purchase vs Term Loan vs Leasing

Feature	Working Capital Loan	Invoice Financing	Supply Chain Financing
Funding type	Lump sum, unsecured	Receivables-based	Trade-based, buyer-led
Use of funds	Unrestricted	Tied to specific invoices	Tied to supply chain transactions
Collateral	Not required	Invoices	Based on buyer credit
Flexibilityr	High	Medium	Structured
Repayment	Fixed monthly instalments	Invoice-driven	Buyer settles on due date
Best for	General operational costs	Unlocking cash from receivables	Optimising buyer-supplier terms

Feature	Working Capital Loan	Invoice Financing	Supply Chain Financing
Funding type	Lump sum, unsecured	Receivables-based	Trade-based, buyer-led
Use of funds	Unrestricted	Tied to specific invoices	Tied to supply chain transactions
Collateral	Not required	Invoices	Based on buyer credit
Flexibilityr	High	Medium	Structured
Repayment	Fixed monthly instalments	Invoice-driven	Buyer settles on due date
Best for	General operational costs	Unlocking cash from receivables	Optimising buyer-supplier terms

Industrial hire purchase is best suited for businesses that want ownership of equipment with structured repayments, rather than renting or using general-purpose financing.

Who Should Consider Industrial Hire Purchase?

Manufacturers and Producers

Investing in machinery, automation, or production lines.

SMEs Scaling Operations

Businesses that need structured financing for ICT equipment while maintaining cash flow.

Apply Now

Eligibility Criteria

To qualify for equipment financing with IFS Capital, your business should:

Be registered and operating

in Malaysia

Require

equipment

for business use

Have an

established operating history

Demonstrate the

ability to service repayments

Eligible business types include sole proprietorships, partnerships, and private limited companies (Sdn Bhd). IFS Capital will review financial statements and asset details as part of the assessment.

Apply Now

Why Choose IFS Capital for Industrial Hire Purchase

IFS Capital combines deep equipment financing expertise with practical execution to support your asset acquisition needs.

20+ years of business financing experience in Malaysia
Part of the PhillipCapital group, backed by SGX-listed IFS Capital Limited
Flexible financing structures aligned to your asset and cash flow requirements
Fast approval and disbursement once assessed
Transparent terms with no hidden fees or complexity

We deliver structured, scalable financing solutions to help businesses acquire the assets they need to grow.

Apply Now

Industries We Serve

IFS Capital supports equipment financing across a range of sectors in Malaysia:

Manufacturing

Finance production lines, automation equipment to increase output and competitiveness.

Manufacturing

Finance production lines, automation equipment to increase output and competitiveness.

Manufacturing

Finance production lines, automation equipment to increase output and competitiveness.

Apply Now

Frequently Asked Questions

What is a working capital loan?

A working capital loan is short-term financing that helps cover daily business costs. It can pay for payroll, inventory, supplier bills, and overhead.

How much can I borrow?

Loan amounts depend on your business revenue, financial track record, and overall cash flow profile. IFS Capital structures each facility around your operational requirements.

How fast can I get funding?

Approvals can be completed within 7 business days once all required documentation is submitted. Funds are disbursed shortly after approval.

Is collateral required?

No. This is an unsecured facility. Approval is based on your business performance and cash flow, not property or physical assets.

What is the repayment period?

Repayment is made through fixed monthly instalments over an agreed tenure, providing predictable and manageable cash flow planning.

Who is eligible to apply?

This financing is available to Malaysian businesses with an established operating history, consistent revenue, and acceptable credit standing.

What is the difference between working capital loans and invoice financing?

A working capital loan provides a lump sum with flexible usage and fixed repayments. Invoice financing is tied to specific receivables and is repaid when customers settle their invoices.

What can I use a working capital loan for?

You can use the funds for any business expense. This includes payroll, inventory, supplier payments, rent, and short-term working capital needs.

Finance Machinery, Equipment, and Commercial Assets

What is Industrial Hire Purchase?

How Industrial Hire Purchase Works

Step 1: Asset Selection

Step 2: Financing Application

Step 3: Credit Assessment and Approval

Step 4: Asset Purchase

Step 5: Instalment Repayment

Step 6: Ownership Transfer

Key Benefits of Industrial Hire Purchase

Preserve Cash Flow

Immediate Asset Utilisation

Fixed Instalment Structure

Ownership at End of Tenure

High Financing Margin

Industrial Hire Purchase vs Term Loan vs Leasing

Who Should Consider Industrial Hire Purchase?

Manufacturers and Producers

Investing in machinery, automation, or production lines.

SMEs Scaling Operations

Businesses that need structured financing for ICT equipment while maintaining cash flow.

Eligibility Criteria

Be registered and operating

in Malaysia

Require

equipment

for business use

Have an

established operating history

Demonstrate the

ability to service repayments

Why Choose IFS Capital for Industrial Hire Purchase

Industries We Serve

Manufacturing

Manufacturing

Manufacturing

Ready to Address Your Cash Flow Gap?

Frequently Asked Questions

What is a working capital loan?

How much can I borrow?

How fast can I get funding?

Is collateral required?

What is the repayment period?

Who is eligible to apply?

What is the difference between working capital loans and invoice financing?

What can I use a working capital loan for?