What else is there to know about invoice financing, aside from it being a way for small-to-medium size enterprises (SME) to borrow a business loan instead of waiting for clients to pay their balances in full? Well, that’s correct, but there is more to invoice financing that meets the eye because invoice factoring is more complicated yet simple than you think.
With that, here are the things you should know about invoice financing.
What exactly invoice financing?
In Singapore, invoice financing is something a finance company offers to SME as a business loan, especially when they have to absorb all the cost, labour, and other expenses for weeks to months before getting paid. This situation often happens when the SME acquire a large order or service, especially when clients request for a long term payment, and with that business owner have to rely on a loan to secure cash flow.
But how does invoice financing works?
To make things short. Invoice financing is something that allows your company to sell its invoices (these are receipts from your expenses) to a finance company. And once that happens, they will provide you with immediate payment.
What other things to know about invoice financing?
Some people call it invoice factoring, but they are not the same yet related to one another.
Not all businesses are eligible to apply for invoice financing, especially those who declare business bankruptcy.
Help business to grow their revenue because invoice financing can eliminate credit risk or account from unpaid clients.
Now, the question is, does your SME need a business loan? If yes, and you’re looking for a reliable provider who can provide excellent invoice financing, then Aspire Financial Technologies in Singapore is for you to trust! Contact them now at +65 96196929 to visit their website in this link.
Resource:
https://jiechou.kinja.com/invoice-financing-what-else-you-should-know-1842357232
