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Invoice Financing in Singapore

By Trinh Thanh
Head of Research
|
Updated 08 Jun 2026

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Glossary

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Useful Resources

By Trinh Thanh
Head of Research
Updated 08 Jun 2026
|

Fact-checked

Invoice financing allows businesses to convert outstanding invoices into immediate cash receiving up to 80 to 90% of the invoice value upfront instead of waiting 30 to 90 days for customers to pay. Also known as invoice factoring or receivables financing this is not a traditional loan as there are no fixed monthly repayments. Thee financing is tied to specific invoices and repaid when your customer pays.

In Singapore invoice financing is offered by banks , alternative lenders and factoring companies . This page explains how invoice financing works, compares providers and helps determine whether it's the right solution for your cash flow needs.
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What Is Invoice Financing?

Invoice financing advances cash against your unpaid B2B invoices. You submit an invoice, the lender advances 80 to 90% immediately and when your customer pays usually 30 to 90 days later you receive the remaining balance minus fees.

  • Advance rate: 80 to 90% of invoice value
  • Per invoice: Typically $10,000 to $500,000
  • Total facility: Up to $5 million (revolving)
  • Remaining 10 to 20%: Released when customer pays minus fees

Fees are typically 1 to 3% per invoice or 0.5 to 1.5% per 30 days outstanding.

Example: $100,000 invoice with 2% fee = $2,000 cost to access $80,000 to $90,000 immediately. Cheaper than carrying credit card debt or missing supplier discounts.

  • B2B businesses with invoices to creditworthy customers
  • Minimum 6 months operating history
  • Invoices must be undisputed and not yet due
  • Customer must be creditworthy (lender assesses customer not just your business)
*Applying with ROSHI will not impact your credit score

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$500,000

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*Based on a $20,000 loan at 6.95% APR over 5 years, read more

$50,000

$500,000

1 Month

60 Months

Total Cashback
0

Your monthly payment

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Rate Disclaimer*

*Based on a $20,000 loan at 6.95% APR over 5 years, read more
Our Expert says

Your Customer's Credit Is What Matters

Invoice financing is unique because the lender is primarily assessing your customer's ability to pay not just your business. A startup with corporate customers may get better terms than an established business with risky customers. When considering invoice financing evaluate your customer base and if they are creditworthy corporations, government agencies or established SMEs. If your customers are small businesses or individuals, invoice financing may not be available or may come with higher fees. Quote Icon

Trinh Thanh
Trinh Thanh
Head of Research
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Best Financing Options for Receivables

Different solutions for different receivables situations.

Invoice Financing
Best for: B2B businesses with 30 to 90 day payment terms
Advance 80-90% of invoice value within 24 to 48 hours. Pay fees only on invoices financed. No fixed monthly payments and repaid when customer pays. Ideal for consistent B2B invoicing.
Cost: 1 to 3% per invoice Speed: 24 to 48 hours
Working Capital Loan
Best for: General cash flow including but not limited to receivables
Lump sum loan for operational needs. Fixed monthly repayments over 1 to 5 years. EFS-WCL offers government risk sharing. Better for businesses needing funds beyond just receivables.
Cost: 7 to 10% p.a. EIR Speed: 3 to 14 days
Business Line of Credit
Best for: Flexible, ongoing access to working capital Revolving facility draw as needed, repay and reborrow. Pay interest only on amount used. Good alternative if you don't have consistent invoices but need flexible cash flow access.
Cost: 8 to 12% p.a. Speed: 1 to 2 weeks (setup)

Who Provides These Loans in Singapore?

Compare lender types, requirements and typical terms.
Banks
DBS OCBC UOB
DBS, OCBC and UOB offer invoice financing for established businesses. Lower fees but stricter requirements. Minimum 2 years operating history and $300,000 plus annual revenue typically required.
Advance Rate: 80 to 85%
Cost: 0.5 to 1.5% per 30 days
Alternative Lenders
Funding Societies Validus GXS Capital
Funding Societies, Validus (GXS Capital) and InvoiceInterchange offer faster approval with more flexible requirements. Accept businesses from 6 months old. Fully digital process.
Advance Rate: 80 to 90%
Cost: 1 to 2.5% per invoice
Factoring Companies
IFS Capital
Specialised factoring firms purchase invoices outright with or without recourse. May accept riskier invoices or customers. Higher fees but most flexible approval.
Advance Rate: 70 to 85%
Cost: 2 to 4% per invoice
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  • No initial impact on credit score
  • Up to 1% Cashback & Vouchers
  • MAS registered lenders only

$50,000

$500,000

1 Month

60 Months

Total Cashback
0

Your monthly payment

0

Rate Disclaimer*

*Based on a $20,000 loan at 6.95% APR over 5 years, read more

How Invoice Financing Works

Submit invoice
Upload your invoice to the lender's platform. Invoice must be to a creditworthy B2B customer, undisputed, and not yet due.
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Receive advance
Lender advances 80 to 90% of invoice value to your account within 24 to 48 hours.
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Customer pays
Your customer pays the invoice on the due date to you or directly to lender, depending on structure.
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Receive balance
Once payment is received you get the remaining 10 to 20% minus the financing fee.
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Pros & Cons of Invoice Financing

PROS

  • Fast access to cash in 24 to 48 hours
  • Not a loan, no fixed monthly payments
  • Approval based on customer credit not just yours
  • Scales with your sales
  • Doesn't add to your debt burden

CONS

  • Only works for B2B businesses
  • Fees can be higher than term loan interest
  • Customer creditworthiness required
  • Some structures require customer notification
  • Recourse invoices mean you're liable if customer doesn't pay

How to find the Right Way to Finance Your Invoice (FAQs)

Is invoice financing the same as factoring?

Invoice financing typically lets you retain control of collections. Factoring involves selling invoices to the lender who may collect directly from your customer.
"With recourse" means you repay the advance if the customer defaults. "Without recourse" means the lender absorbs the loss but charges higher fees.
Some use "confidential" structures where customers aren't notified. Others require notification or direct payment to the lender.
B2B invoices to creditworthy customers, undisputed, not yet overdue. Invoices to individuals, related parties or disputed invoices typically don't qualify.
Invoice financing is tied to specific invoices with no fixed monthly payments repaid when the customer pays. A business loan is a lump sum with fixed monthly instalments regardless of receivables.

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9 months ago

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With the help of the ROSHI Support link to partner, I had a great experience with EZY Loan. The online application was simple, document verification was fast, and the funds were credited on the same day. The staff were professional and explained everything clearly, with no hidden fees. Overall, an excellent and hassle-free service!

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2 months ago

Great offers with low interest rates. Better than Lendela! Plus there is a 0.50% cashback and $20 grocery voucher upon approval and disbursement of loan!

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Explore Other Financing Options

Invoice financing solves receivables specific cash flow gaps but depending on your situation other options may be more suitable. For general working capital needs beyond receivables, working capital loans offer EFS-WCL government support up to $500,000. Businesses needing flexible ongoing access can explore a business line of credit.

For larger one time capital needs, small business loans provide lump sum financing with fixed repayments. Businesses with property can access property-backed business loans at lower rates.