MCB Factors

FAQ

Am I eligible to factoring services?

If you sell on credit (not exceeding 150 days) on a diversified portfolio of debtors (B to B) you will most probably be eligible for factoring.

Is there a financing limit in factoring?

Factoring financing adapts to the evolution of your trade receivables. For instance, the more you sell, the more we finance, given that sales are free from commercial disputes and are on credit worthy buyers.

Must I assign all my clients to MCB Factors?

The whole portfolio must normally be assigned to MCB Factors Ltd. However, selection on objective criteria can be considered.

What if my client feels uncomfortable to work with MCB Factors?

You are still responsible for managing commercial relationship with your clients as only the collection service will be outsourced to MCB Factors. MCB Factors has more than 10 years experience in factoring and performs collection on more than 7,000 debtors in the domestic market.

What is the maximum credit period I can give to my customers?

The maximum credit period is 150 days.

Would I lose visibility on my portfolio of debtors?

MCB Factors offers you a full range of reports which will help you track status of all invoices assigned to us. We also customize our reporting to our customers needs.

How much time does it take to obtain a factoring quote?

Following completion of our application form and submission of all required documents, we generally make an offer within 5 working days.

Can I assign invoices prior contract date?

We will normally consider starting factoring agreement with fresh invoices at the start of a new month.

How should I inform my clients that I am working with MCB Factors?

MCB Factors will provide you with a template letter to notify all your clients. A ‘subrogation’ wording will also need to be affixed on all invoices.

Where does my customer send the payment?

You customer will settle the invoices directly to MCB Factors Ltd.

To whom should the payment be addressed?

The payment must be addressed to MCB Factors Ltd.

What documents should I send with my invoices?

Documents that will be needed to be sent with invoices will be agreed upon at the outset, and will form part of the factoring agreement. Generally, documents required will be purchase orders, delivery notes and contracts among others.

At what frequency should I send my invoices to MCB Factors?

Frequency to send invoices is also agreed at the outset of the contract. Generally, invoices are sent once weekly.

How long does it take to have my invoices financed?

We normally finance within 24hrs from receipt of invoices provided that all conditions have been satisfied.

Do I receive a notification whenever funds are credited to my account?

A funding advice is sent to you every time we credit your bank account.

Am I made aware of commercial disputes that may arise during the collection process?

Whenever, a dispute is raised by your client you will immediately be notified of reason of dispute. Once dispute is settled, you will need to inform us so that we can resume collection services. You are contractually required to settle a dispute within 15 days from notification.