Small and medium-sized enterprises (SMEs) tend to experience limited access to finance. By consequence, the faster and more efficient recollection of debts from receivables becomes essential for the business.Factoring allows the business owner to transfer his receivables in the form of invoices to the factor (a bank or other financial institution),that offers an advance of 70-90% of the purchase price of the receivable amount. The factor will then collect the full amount from the customer in due course and pays the balance amount due to the business owner, less any commission payable. In this way, the business owner is given a significant cash flow advantage. Furthermore, factoring can also be arranged without recourse – meaning that the factor will bear the risk of non-collection instead of the business owner.KSi Malta has an established relationship with local banks and other highly reputable international institutions offering invoice factoring. This procedure would firstly require the client to submit a summary of his intended activities together with details of the amounts and the buyers he intends to export to on an annual basis.The institution will then request a credit report on each client from a specialised insurance company. If the insurance company accepts to provide insurance in respect of the outlined clients, the institution will start discounting all invoices up to a maximum of 90%.