How IFS Capital Drives Business Growth with Accounts Receivable Purchase (ARP)

At IFS Capital, we recognize that businesses often face cash flow challenges. One of the effective ways to address this is through Accounts Receivable Purchase (ARP), also known as invoice financing. Unlike conventional loans, ARP allows businesses to assign their unpaid invoices to us in exchange for immediate working capital. This not only improves liquidity but also eliminates the burden of managing overdue invoices and collections.

‍

In this article, we’ll showcase some real-world cases where IFS Capital’s ARP program has enabled businesses to meet their cash flow needs while improving operational efficiency and accelerating growth.

‍

1. IFS Helps Clients Get Paid from Customer

A Singapore-based client, dealing with a large marine customer, faced overdue invoices exceeding 120 days. This caused cash flow issues, as the client was only communicating with the business team and not the finance team of their customer. Dealing with a large buyer meant their invoices were getting lost in the multitude of supplier communications.

‍

By leveraging IFS Capital’s ARP program, we took over the collections process on their behalf, freeing up the client’s time for growth-focused activities. Not only were they able to receive real-time updates on invoice status, but they also received working capital upfront, significantly improving their financial situation.

‍

Within a year, we reduced the invoice aging significantly and improved the client’s cash flow, allowing them to focus on business expansion.

‍

Is your business facing long payment cycles with customers?‍

IFS’s ARP program can help by managing collections and providing fast financing against unpaid invoices.

‍

‍

2. IFS Assesses Credit Differently: Unlocking Potential in Clients’ Businesses

a. Bottled Drink Manufacturer – Thailand

A leading bottled drink manufacturer in Thailand sought additional working capital to support its business expansion. However, stringent credit policies from traditional financial institutions blocked their path to securing a loan due to previous strained credit relationships.

At IFS Capital, we saw potential in the client’s receivables, which were against established customers in the modern trade industry. Understanding their needs, we focused on the quality of their receivables rather than rigid credit policies. This allowed us to extend financing, ensuring that as long as the goods were delivered, their customers would fulfil payment obligations.

‍

b. Growth Story: 10x Sales Increase

With an ARP facility granted by IFS Capital, the client was able to grow their sales 10x and secure the second-largest market share in their industry. The flexibility of our ARP program meant that the financing grew with their sales, ensuring they had the liquidity to keep expanding confidently.

Do you need a financing partner who understands your business?
IFS Capital’s ARP program offers a credit option to free up cash flow and fuel aggressive growth targets.

‍

Ready to Get Started with IFS Capital’s Accounts Receivable Purchase (ARP)?

If your business is struggling with long payment terms or needs quick access to cash flow, IFS Capital’s ARP program can provide the solution. Contact us today to learn more about how we can help you unlock working capital from your unpaid invoices and streamline your business operations.