It would be a mere frustration for any Business company when they have to wait for a longer period of time to get paid. The experience can even be bitter for the business persons who do seasonal business. It is known to all that scheduled and non-scheduled banks have started to tighten the rules and regulations in case of extending credit to their customers. With this, it becomes harder to collect necessary capital to retain the regular business operation. This is where the significance of invoice financing options is particularly felt.
Invoice financing in Singapore:
Being a business owner you know it very well that an invoice can be outstanding for 30, 60, and 90 days. During this period of time, you may have a scarcity of cash; consequently, the business prospect would be slowed down for a specific period of time as well. Here factoring companies come with impressive immediate cash for invoice payment system on the amount as stated in the invoice. The professionals would collect cash from your existing customers and then pay back the amount after deducting a small amount of factoring fee from that.
How does the entire process work?
Usually, a company generates an invoice only after it delivers some goods to its customers. After that, the company would sell the invoice to the specific invoice financer and in return, it will provide you 50-80% of the cash value of the invoice. After that, when the borrower would reimburse the entire face value of the invoice, the rest of the amount will be given to you.
You can access cash very fast in a stress-free manner since they will arrange for cash within 24-48 hours on sanctioned invoices. Initially, it would take an average of 5 to 10 days from the date of the factoring application.
It is not a loan at all, so, it would not increase your liability. One more added advantage is that there is nothing like long term contracts here. It solely depends on you what invoices you need to factor.
Recently the factoring cost has come down sharply; therefore, it would matter little for anybody to consider this. The fees differ from a number of invoices, a volume of invoices, advance rates, client solvency and lastly the time frame that the customers would take to reimburse the payment.
Cash for invoice service would definitely offer you a complete stress-free business proceeding; you don’t have to wait longer for paying some utility bills anymore.