
Ref: IKHLAS/POST/[MONTH]/[YEAR]
[To Insert]
We reserve the right to accept Customers who would agree to the factoring
arrangement and to reject those who persistently continue to make payments to
you instead of us.
Every invoice and delivery order must be duly affixed and signed by the
Customer and accompanied by a copy of Purchase Order (if any).
Invoice(s) to be factored must be current (invoice date should not be more than
30 days from the date of submission) and does not exceed the credit term given
to the Customers.
Any exemption to the above clause shall be at the sole and absolute discretion
of Ikhlas.
We shall from time to time verify the validity of your invoices factored to us. Such
verification shall include direct confirmation from your Customers either verbally or
in writing, visits or such other method as we deem necessary.
In a case where there is a debenture incorporating a fixed and floating charge
over your book debts, we would require your Factor to obtain written consent
from the debenture holder(s) for a waiver over the said book debts.
Any debt remaining outstanding after the expiry of the Credit Period is to be
settled by your Factor if Rollover to the Recourse Period is declined by us,
failing which we shall not allow any new funding.
Rollover Fee shall be imposed, in addition to the Profit Charge, until such time
where full settlement of the Factored Debt, together with all other incidental
charges, are paid
A formal notification shall be arranged to the factored Customers and all copies
of invoice(s) are to bear our Notice of Assignment endorsement as per
Attachment 1 attached herein.
A copy of the monthly statement raised on your factored Customers must be
submitted to us for verification.
We reserve the right to conduct an audit on your Factor’s financial records prior
to the utilization of facility, if necessary.
We may at any time whatsoever, upon giving notice to the Factor, vary or
amend any term or condition in the Letter of Offer and Acceptance or the
Tawarruq and Hawalah Factoring Agreement with effect from the date
specified in the said notice.
Where the amount payable in respect of a Factored Debt is disputed by any
Customer for any reason whatsoever, we shall be entitled either to withhold and
retain the Advance until payment made in respect of such outstanding invoices
is received in full or to utilize the Advance to set off against such outstanding
invoices or outstanding amount(s) from any of your accounts or to treat as set-
off such outstanding charges due and owing to any of Ikhlas’s holding
companies, subsidiary companies and/or related or associated companies, and
treat such set-off as deemed payment of the Advance to you.
The amount to be advanced shall be subject to review by us from time to time
based on the merits of each case.
All Debts to be factored must be undisputed and not subject to the followings:
Consignment / Cash Sales.