This post is also available in: 简体中文 (Chinese (Simplified))
Invoice Financing for SME in Singapore
According to a survey by the British Buisness Bank in February 2016, cash-flow is the most common reason for small businesses to seek funding. Besides, in accordance with Xero also proven that “small business owners are spending an average of 10% of their day, which equals to two days per month, chasing for late payments with invoices an average of 14 days overdue before being settled”.
Undeniably, cash-flow is crucial for the growth and development of your business and company. Every businessman need to consider and plan thoroughly on the cash-flow to ensure your business can operate smoothly.
Apart from bank loans, there is another alternative to help Newly Setup Company which are P2P loan and invoice financing. What is invoice financing? Well, invoice financing is a short term financing solution which allows businesses to draw down cash against outstanding sales invoices.
P2P loan or also known as peer-to-peer loans and invoice financing facilities are a real alternative to bank loans for business or SME owners to borrow money and investors can invest in such loans and invoice financing as an alternative to the financial product of the banks with attractive potential returns.
Who is it for?
Any Singapore registered company with at least six (6) months operation and B2B business can applied for this.
How does invoice financing works?
First you need to upload your invoice. Your invoice will be reviewed before going live for sale. After that, investors competitively bid to purchase your invoice. Once the auction closes, funds will be available and advanced to you within 24 hours.
You will be able to get competitive finance offers for free. Invoice financing is fast, flexible online working capital solutions for SME. With the steps mentioned, to obtain cash in 24 hours from your unpaid invoices, instead of 60 days or 90 days is no longer a problem anymore!
Invoice financing is to help SME get cash-flow from the trade debtor so they can get cash to pay to their supplier, complete the project and then collect cash from debtor afterwards. In comparison with traditional form of borrowing, invoice financing only cost you an average of 1% interest per month. Not to mention, the feature of financing invoice allows you to get funds in a faster way. It is very suitable for big projects that requires temporary cash-flow. With this facility, you don’t have to tie up big cash-flow with supplier as the debtor invoice can be financed through this platform.
In short, invoice financing is another good alternative for financial products of the banks. Interested to know more about invoice financing? Do let us know if you need help as we would like to help you to grow your business.