FINANCIAL CHARGES

Financial Charges For Factoring Facility :

1. Factoring Fee at 3% of Invoice Value (Contract Value).

Note : One Time payment per invoice.

2. Initial Payment Charge at 11% per annum based on 80% of Invoice Value (Contract
Value).

Example :

Invoice value/ : RM 100,000.00

(Contract Value) _____________
Factoring Amount (80%) : 80,000.00 (Assumption : Payment made on 1/1)

Less : 3% Factoring Fee : 3,000.00

Of Invoice Value
_____________
Net Disbursement Amount : 77,000.00
_____________

When receiving payment from Government amounting RM 100,000.00 (Assumption:

on 1/3)

(1) Invoice value : 100,000.00

(-) Factoring Amount (80%) : 80,000.00

(-) Initial Payment Charge : 1,446.00 *
@ 11% p.a. _________

Refund Amount 18,554.00

_________

Note :

* 80,000 x 11% x 60/365 = 1,446 (from 1/1 to 1/3 = 60 days)*calculate on daily basis

(2) Effective Payment to Borrower :

77,000
+ 18,554
95,554
(3) Total Cost to Borrower :

3,000
+ 1,446
4,446 (4.45%)
Letter Of Credit (LC)

1. Maximum LC issued cannot exceed 77% of the Invoice Amount.

Example :

Contract / Invoice value : RM100,000 (77% = RM77,000)

Total cost : RM 40,000 (40%)

(supplier to issue proforma invoice)

Duration of LC : 1 month
to be issued

LC Charges : RM40,000 x 1% x 1 month

RM400.00

Processing fee : RM500 (per LC application).

* Note : Confirming fee : 1% per month.

No collateral at all. Issue for oversea & local supplier.
** Once the invoice is issued, LC will be automatically converted into Factoring (Charges
on factoring, kindly refer ‘Financial Chargers for Factoring Facility’)

Bank Guarantee (BG)

Contract / Invoice value : RM100,000

Bank Guarantee amount : RM 5,000 (5%)
Tenure : 12 month
BG Commission : 0.40% per month

Bank Guarantee Commission

12 months x 0.40% per month x RM5,000 = RM 240.00

Stamp Duty = RM 40.00

Processing fee = RM 500.00

Security Deposit (30% of BG amount) = RM1,500.00

___________
TOTAL RM2,280.00
==========

*IFSB (70%) = RM3,500

*The amount paid by IFSB will be deducted from factoring proceed. Upon expiry, the BG
will be refunded to client.*