Invoice Factoring Companies are Institutions who registered under the Banking and Financial Institutions Act (BAFIA) 1989 and requires be registering and approving by Bank Negara Malaysia (BNM) and Ministry of Finance to comply with Section 21(1) of the BAFIA. Most businesses sell their goods or services on extended credit terms that caused a lot of money tied up in unpaid invoices and as you know normally banking facilities are never easy to arrange, especially there is a lack of business operating histories or an asset as collateral. Factoring is a form of business financing required no collateral that can be used by all kinds of businesses, like traders, manufacturers, construction contractors or services provider companies. It involves an arrangement between you and finance factoring companies where they purchase your accounts receivable or the invoices. Factoring is a flexible facility which allows business to convert their credit sales into cash sales by selling their invoices to a factoring company for immediate payment, some finance factoring will make an advance payment of up to 90% and the balance is held as a contingency reserve and refunded only after the receivables have been collected. Factoring is a powerful and an effective financing tool which is totally geared towards growth. With factoring facilities, a business can improve their cash flow, fulfils its working capital requirement, expand business and increase their profits.