Invoice Financing

INVOICE FINANCING

Invoice Financing in Singapore

Quick Jump To…

At a Glance

Pros & Cons

Who Can Qualify?

Cost

How It Works

[icon_box border=”1″ title=”What is Invoice Financing?” image=”2604″]

You can get funding based on your outstanding invoices via accounts receivable financing.

[/icon_box]

[icon_box border=”1″ title=”How Do I Qualify?” image=”2605″]

  1. At least 6 months in operations
  2. Invoice to reputable debtor
  3. Business registered and operating in Singapore

Disclaimer: These are general qualifications. Other information might be considered during your application.

[/icon_box]

[icon_box border=”1″ title=”How Do I Apply?” image=”2606″]

There are a few kinds of invoice financing. To find out more on the options, you can contact one of our capable specialists

Apply Here For Invoice Financing

[/icon_box]

Invoice Financing at a glance

Invoice Financing – also known as accounts receivable financing lets business owners to get funding using their outstanding invoices. The Financiers will lend out money using the outstanding invoices as a collateral. You can get up to 80-90% of the value of the unpaid invoices.

[icon_box border=”0″ title=”Maximum Loan Amount” image=”2619″]

Up to 90% of invoice value

[/icon_box]

[icon_box border=”0″ title=”Repayment” image=”2623″]

30 – 120 days

[/icon_box]

[icon_box border=”0″ title=”Interest Rates” image=”2624″]

6 – 18% per annum

[/icon_box]

[icon_box border=”0″ title=”Speed” image=”2625″]

As fast as 1 day

[/icon_box]

The Pros and Cons

Get the money sooner than the invoice payment date

The invoices act as a collateral

Higher fees compared to traditional financing

Shorter tenure compared to traditional financing

Apply for the best Invoice Financing
deals with Loan Champ Today

Compare All Loan Types...

Loan Type

Speed

Interest Rates

Micro Loan

2 – 3 weeks

3.2 – 4.5% per annum

Personal Loan for Business

3 – 7 days

4.4 – 6.88% per annum

Trade Financing

2 – 4 weeks

2.3 – 2.8% per annum

Equipment Financing

2 – 3 weeks

2.8 – 3.2% per annum

Crowdfunding

1 – 3 weeks

12 – 16% per annum

Business Term Loan

2 – 3 weeks

5 – 7% per annum

Short-Term Loan

1 – 2 weeks

7.8 – 12% per annum

Who Qualifies for Invoice Financing?

If the business has outstanding invoices and have a decent credit history, you can qualify for an invoice financing.

The financiers do not take the turnover, net profit or the incorporation date of the company into consideration as much as the invoice or the credibility of the invoiced party.

The amount of financing you can qualify for relies on the quality and the value of the outstanding invoice. It also relies on your credit score and the invoiced party’s credibility.

Some financiers will also look at your credit score as well.

What Documents Do I Need to Apply?

Bank Statements

Profit & Loss Statements

Balance Sheet

Income Tax Returns

Identification Card (NRIC) / Copy of Passport

[blockquote]

“Invoice financing helps you get paid on receivables sooner, so you can seize business opportunities.”

[/blockquote]

Get the best Invoice Financing deals in the market

Why Invoice Financing?

There are times when customers do not pay on schedule, and this causes a cash flow issue for your business. These held up payments will affect your business’s operations giving you a complication.

From our experience, this problem occurs quite frequently with SME owners. This is why we are offering accounts receivable financing.

There is no delay with accounts receivable financing with a very short turn-around time of 1-5 working days from the day of application to the disbursement of funds.

Dealing with your cash flow problems using accounts receivable financing is basically what it can help your business with.

Although invoice financing is a rather costly way to fund your business, it helps you operate your business with a more consistent and calculable cash flow. If your business is low on working capital, has an urgent expense is anticipated such as wages or taxes, or even funds needed to embark on a new venture, that is where invoice financing can benefit your business.

Cost of Invoice Financing in Singapore

In the event where the Financier has approved your invoice for an invoice financing, the financier’s will generally disburse 80-90% of the total value of the invoices in funds to you. The rest of the amount will be paid once your customer pays off the invoice.

The fees charged by the financiers can be anywhere from 1% – 2.5% a month, depending on the strength of your company and your debtor’s company as well as a one-time processing fee of the total amount being disbursed.

Basically, accounts receivable financing is a cost for your business’s convenience.

Apply for the Best Invoice Financing option in Singapore

How it Works

For instance, you want to get an accounts receivable financing of a $100,000 invoice with a 60-day term.

The financier disbursed 80% of it, which is $80,000. Your client then pays the invoice to you 60 days later. The financier charged you a 2.5% processing fee, which sums up to $2,500, on top of that charges you 1.5% a month, which sums up to $3,000. The financier then gives you the remaining of $14,500. The total charge for this invoice financing is $5,500 for a 2-month loan.

$5,500 for a 2-month loan of $100,000 may be considered a high price to pay, however it really depends on your business’s urgency for funds.

Ready to Grow Your Business?

It’s FREE – $0 Upfront Cost, No Obligation