Tanjung Capital Sdn. Bhd.
D05-06, Block D, Plaza Mont Kiara, Jalan Kiara, 50480 Kuala Lumpur
Phone Number
+603 9213 0498
contact@tanjungcapital.com
How Receivables Purchase Works
A simple, straightforward process to transform your invoices into immediate working capital.
Important Notice: Nature of Our Services
The services provided by Tanjung Capital Sdn. Bhd. constitute a true sale and purchase of your accounts receivable (invoices). This is not a loan, financing, or any form of credit facility. By selling your invoices to us, you are transferring ownership of the receivable asset in exchange for an immediate purchase payment. This transaction does not create debt on your balance sheet. All terminology used on this website, including “purchase payment,” “discount,” and “purchase,” reflects the nature of this transaction as a sale of assets and should not be misconstrued as terms associated with lending or financing.
The Receivables Purchase Process: Simple and Efficient
Receivables purchase with Tanjung Capital follows a straightforward process designed to get funds into your account quickly while maintaining professional relationships with your customers. Our streamlined approach eliminates unnecessary paperwork and delays, focusing instead on delivering the working capital your business needs to thrive.
The entire process can be broken down into five simple steps that take you from invoice submission to receiving your funds. Once established as a client, the receivables purchase process typically takes just 24-48 hours from invoice submission to cash in your account.
The Tanjung Capital 5-Step Process
Step 1: You Deliver Products or Services to Your Customer
The receivables purchase process begins with your normal business operations. You provide goods or services to your B2B customers and issue an invoice with your standard payment terms (typically 30, 60, or 90 days).
Step 2: You Submit the Invoice to Tanjung Capital
Once you’ve issued the invoice to your customer, you submit a copy to Tanjung Capital through our secure online portal. We’ll verify the invoice details and confirm that it meets our eligibility criteria.
Step 3: We Initial Purchase Payment You Up to 78% of the Invoice Value
Upon verification, Tanjung Capital transfers up to 78% of the invoice value directly to your bank account, typically within 24-48 hours. This immediate cash injection allows you to meet payroll, purchase inventory, or invest in growth opportunities without waiting for customer
payment.
Step 4: We Manage the Collection Process
When the invoice becomes due, Tanjung Capital professionally manages the collection process. Your customer makes payment directly to us according to the original invoice terms. Our experienced team ensures a smooth, professional collection process that maintains positive customer relationships.
Step 5: You Receive the Remaining Balance
Once your customer pays the invoice in full, we transfer the remaining balance (the reserve amount, typically 22%) to your account, minus our discount rate. This completes the receivables purchase cycle for that invoice.
Receivables Purchase Flow Chart
How to Get Started with Tanjung Capital
1. Initial Consultation
Contact us for a free, no-obligation consultation to discuss your business needs and determine if receivables purchase is the right solution for your cash flow challenges.
2. Application Process
Complete our streamlined application and provide basic documentation about your business and customers. This typically includes:
• Business registration documents
• Recent financial statements or management accounts
• Sample invoices
• Customer list with contact information
• Aging report of accounts receivable
3. Due Diligence and Approval
Our team reviews your application and conducts due diligence on your business and key customers.
4. Contract Signing
Upon approval, we’ll provide a receivables purchase agreement agreement that clearly outlines all terms and conditions, including initial purchase payment rate, discounts, and service details.
5. Account Setup
We’ll set up your receivables purchase account, including access to our online portal and notification to your customers about payment redirection (unless you choose confidential receivables purchase).
6. First Receivables Purchase
Submit your first batch of invoices and receive receivables purchase, typically within 24-48 hours.
Frequently Asked Questions
What types of invoices can be receivables purchase?
Tanjung Capital accepts invoices from businesses that sell to other businesses (B2B) or government entities (B2G) on credit terms. The invoices must be for completed work or delivered products, free from disputes, and not subject to offsets or counterclaims.
How much does receivables purchase cost?
Our discount rate start at 2.5% per month on the initial purchase payment amount, with the exact rate determined by your monthly receivables purchase volume, your customers’ creditworthiness, and the average payment time of your invoices. We maintain complete transparency in our pricing with no hidden discounts.
How quickly can I receive purchase payment?
Once your account is established, you can typically receive purchase payment within 24-48 hours of submitting eligible invoices.
Do I have to receivables purchase all my invoices?
No. With Tanjung Capital, you can choose which invoices to receivables purchase based on your cash flow needs. There’s no requirement to factor all your receivables.
Will my customers know I'm using a receivables purchase service?
Unless you choose our confidential receivables purchase option, your customers will receive notification that their payments should be directed to Tanjung Capital. However, this is presented professionally as a standard business practice for accounts receivable management.
What if my customer doesn't pay the invoice?
With our standard recourse factoring, you would be responsible for repaying the initial purchase payment if your customer fails to pay within a specified period (typically 90 days).
Is there a minimum monthly volume requirement?
While we don’t have strict minimum requirements, our services are most cost-effective for businesses with monthly invoice volumes of at least RM 50,000.
How is receivables purchase different from a loan?
Receivables purchase is not a loan—it’s a purchase of your accounts receivable. This means you’re not taking on new debt, but rather selling an asset (your invoices) at a discount for immediate cash. This distinction is important for maintaining a healthy balance sheet.
Real-World Example: How Receivables Purchase Works in Practice
KL Manufacturing Solutions is a medium-sized manufacturer supplying components to larger industrial companies. Despite strong sales, they faced consistent cash flow challenges due to their customers’ 60-day payment terms.
The Challenge
- Monthly payroll: RM 200,000
- Materials costs: RM 150,000 per month
- Average monthly invoicing: RM 500,000
- Customer payment terms: 60 days
- Cash flow gap: Approximately RM 350,000 per month
The Tanjung Capital Solution
- KL Manufacturing receivables purchase RM 500,000 in monthly invoices.
- They received an 78% Initial Purchase Payment (RM 400,000) within 48 hours.
- This covered their payroll and materials costs of RM 350,000.
- After 60 days, they received the remaining 22% (RM 100,000) minus discount rates.
- Discount Rate: 2.5% per month × 2 = RM 25,000.
- Total received: RM 475,000 (95% of invoice value).
The Result
- Eliminated cash flow gap.
- Maintained consistent production schedule.
- Improved supplier relationships through prompt payments.
- Increased capacity to take on new orders.
- Revenue grew by 30% within six months.
Ready to Transform Your Cash Flow?
Discover how Tanjung Capital’s receivables purchase solutions can provide the working capital your business needs to thrive.
CONTACT US
Tanjung Capital Sdn. Bhd. provides receivables purchase services. The transactions described on this website are not loans, credit facilities, or any form of financing and are not intended to be regulated under the Moneylenders Act 1951.
Contact Details
Tanjung Capital Sdn. Bhd.
D05-06, Block D, Plaza Mont Kiara, Jalan Kiara, 50480 Kuala Lumpur
+603 9213 0498
contact@tanjungcapital.com