- August 26, 2020
- Posted by: avantconsulting
- Category: Invoice Factoring
Is Singapore Invoice Factoring Financing for you – Business climate has been tough for the most parts of 2020. Covid-19 pandemic has slowed down the world economy and trading businesses have grind to a halt.
For most businesses, there has been a need to get financing from banks and financial institutions to pull through this tough economic period.
Invoice Factoring is a very interest model of financing your business because you will be able to get money up front to run your projects or you will be able to get funds much faster than before.
Chasing of the payment is also no longer your issue but with that of the factoring company.
So what are some of the things that you should take note of if you are keen on taking up Singapore Invoice Factoring Financing if you are looking to run your business in a more efficient manner and if you want to make sure you do not have cash flow issues.
So is Singapore Invoice Factoring for you?
One of the main considerations that one should take note of is, how important is cash flow to you.
For some businesses such as construction or engineering projects. The cash outlay may be quite a big sum for some businesses to be able to afford.
In certain situations, cash outlay may be huge when the business takes on more projects at one go. There are materials to buy and salary to pay for.
Main Contractors or even the customer themselves sometimes delay payment and end up having issues making payment on time.
This causes the construction company to face tight cash flow conditions that may last for a period of time.
This is not good news if you are a budding business that is not just trying to survive but also expand your business.
In comes Singapore Invoice Factoring financing options. The factoring company usually will view your invoice to your customer, in certain cases maybe a government organisation or maybe a very big and reputable company.
How Singapore Invoice Factoring Financing works
The financing company will then assess your situation and also that of your customer that you are planning to invoice to see if they are able to take on the risk that are involved in joining this case. They will then take on the invoice that you wish to factor and will take on the task of getting the receivable amount from the other party.
The factoring company will pay you up front an amount usually about 80% of the invoice quantum and will charge a fee on top of that.
After the few months it takes for the rest of the receivable amount to be taken back, the financing company will take a percentage of the remaining 20% as a fee for their services and will pay out the amount to you.
This releases you from the role of receivables and also allows you to focus on making sure you are able to deliver the said services that you are providing.
For most business that will require cash flow, this is a great option for you and you will also be able to move on to more projects and have cash to grow your business much faster.
We will like to hear more from you and how you think we can work together on providing said services for you.
Thank you for reading our article on “Is Singapore Invoice Factoring Financing for you”.
Avant Consulting is a Singapore Loan consultancy firm assisting SME companies with Singapore Business Financing options such as SME Loans, Structured Trade Financing options and also Invoice Factoring & Financing options.
If you require help with Invoice Financing in Singapore, speak to our consultants now to get you started.
Is Singapore Invoice Factoring Financing for you?