Factoring is when a company buys a debt or invoice from another company. In this purchase, accounts receivable are discounted in order to allow the buyer to make a profit upon the settlement of the debt.
Essentially factoring transfers the ownership of invoice to another party that then chases up the debt. Factoring, therefore, relieves the first party of a debt for less than the total amount providing them with working capital to continue trading, while the buyer, or factor, chases up the debt for the full amount and profits when it is paid.
MyAngkasa Shoraka is the Factoring provider where our target customers are mainly Cooperatives who are doing job or supplying goods to Government or GLC. Upon taking ownership of invoice, MyAngkasa Shoraka to get payment directly from Government or GLC.