Receivables financing helps Singapore businesses unlock working capital tied up in unpaid invoices. Compare structures, costs and collection terms.
Access part of the value tied up in eligible unpaid invoices before customers reach their payment dates.
The structure is assessed against the invoices, the business and the underlying customers rather than a generic funding purpose.
Compare confidential invoice financing with disclosed factoring, including fees, recourse and collection responsibilities.
Invoice factoring lets a business sell its unpaid invoices to a financier and receive most of the value immediately, rather than waiting 30, 60 or 90 days for customers to pay. The financier advances a large share of each invoice up front, then collects payment from your customer directly and releases the remainder, minus its fee, once they have paid. For businesses that sell on credit terms, it converts a receivable that is stuck on paper into working capital you can actually use.
It helps to know the distinctions. With factoring, you sell the invoice and the financier takes over collection, so your customer knows a third party is involved. With invoice financing, you borrow against the invoice but keep collecting yourself, which stays confidential. Floor stock, or floorplan, financing is a close cousin used mainly in the motor and equipment trades: it funds a dealer's showroom inventory, with each unit repaid as it sells. All three free up capital that would otherwise be locked in receivables or stock.
Factoring works well for businesses with reliable, creditworthy customers but long payment terms — wholesalers, trading firms, manufacturers and service providers who invoice other businesses. It is especially useful when growth itself is the problem: the more you sell on credit, the more cash gets tied up in invoices, and factoring scales with that. It is less relevant if you are paid upfront or deal mostly with consumers.
The headline advance rate is only part of the picture — commonly a portion of each invoice is advanced, with the rest held back until your customer pays, and the fee depends on how long that takes. Because the financier relies on your customers to pay, they will assess those customers' credit, and some arrangements are "recourse" (you carry the risk if a customer defaults) while others are not. It is worth being clear which you are signing up for.
Fundwise helps you compare factoring and financing options side by side — advance rates, fees, recourse terms and how collection is handled — so you pick the structure that fits your customers and your margins. Talk through your receivables with us.
Guiding you at every step — and back again for your next financing need. It's an ongoing cycle, not a one-off transaction.
Receivables financing turns unpaid business invoices into working capital before customers pay. Depending on the structure, a financier may advance funds against the invoices or purchase them and manage collection. Fundwise is an independent financing advisory, not the financier.
With factoring, the financier usually purchases the invoices and collects from customers directly. With invoice financing, the business borrows against the invoices and normally continues collecting itself. The right structure depends on confidentiality, cost, recourse and customer relationships.
The advance depends on the financier, the customers’ credit strength, the industry and the invoice terms. Any figures are indicative and remain subject to the institution’s assessment.
It may suit wholesalers, trading firms, manufacturers and service providers that invoice other businesses on 30-, 60- or 90-day terms and have working capital tied up in receivables.
No. Fundwise does not buy invoices or provide loans. We help businesses understand available structures and approach banks and licensed institutions that may offer them.
Brief us about your situation before we get on a call to discuss the specifics.
We will get back to all enquiries within 48 hours.
Tap on our knowledge to make better decisions for yourself.
