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Invoice financing in Singapore offers a practical way for businesses to turn outstanding invoices into immediate cash flow. At ROSHI, we help local SMEs and startups navigate the growing number of invoice financing providers in the region.
Our platform enables you to compare and access trusted lenders that offer flexible solutions suited to your company’s needs. Whether you're dealing with delayed payments or seasonal cash shortages, invoice financing can offer a scalable alternative to traditional bank loans. With our intuitive interface, you don’t need to visit individual providers—we bring the best of invoice financing Singapore directly to your screen.
If you're wondering what is invoice financing, think of it as a cash advance against your receivables. Rather than waiting weeks or months for your clients to pay, invoice financing lets you tap into that pending income immediately.
This is not a loan in the traditional sense; instead, it's a short-term funding tool tailored for businesses that invoice customers regularly.
Managing international trade often means navigating delayed payments, foreign exchange risk, and supplier timelines. That’s where import invoice financing comes in.
It allows importers to pay overseas suppliers upfront while repaying the financing provider once their customers settle invoices. ROSHI connects importers in Singapore with financing solutions that bridge this gap effectively. You’ll find providers that understand global trade dynamics and offer tailored terms for your supply chain. Our platform centralizes your options, saving you from dealing with multiple institutions while securing the liquidity you need to keep shipments flowing..
Understanding the difference between invoice factoring vs invoice financing is crucial for choosing the right funding method. In invoice factoring, you sell your invoices to a third party who collects directly from your customers.
In invoice financing, you retain control over collections and simply borrow against the invoice value. Each has its pros and cons depending on your business model, customer relationships, and privacy needs.
| Lender | Annual Interest Rate | Processing Fee | Annual Fee | Monthly Repayment |
|---|---|---|---|---|
| Anext | 7% | 1% or S$200 whichever is higher | $0 | $2,970.18 |
| DBS | 6% | 1% | no | $2,899.92 |
| Maybank | 7% | 1-2% | $2,970.18 | |
| OCBC | 7.5 % | 1-2% | no | $3,005.69 |
| Orix | 8.5 % | 1-2% | no | $3,077.48 |
| Ethoz | 9 % | 1.25% | One time off $1,500 Commitement Fee | $3,113.75 |
| Funding Societies | 9.6 % | 7% | $3,157.61 | |
| SCB | 10.88 % | 1-3% | $288 | $3,252.39 |
* Rates Updated 14 Jul 2025 - Loan Amount Example S$150,000 In 5 Years
Invoice financing is a type of short-term business funding that enables companies to leverage their unpaid invoices to access immediate cash. Instead of waiting for clients to fulfill their payment terms—often 30 to 90 days—businesses can receive a large portion of the invoice value upfront from a lender. This approach helps companies maintain healthy cash flow, meet operational expenses, and continue scaling without relying solely on traditional bank loans.
There are two main forms of invoice financing: invoice factoring and invoice discounting. In invoice factoring, the lender typically manages collections from the client, while in invoice discounting, the business retains control of the collection process. Both models are based on the value of accounts receivable and do not require physical assets as collateral, making them ideal for businesses with limited tangible resources.
This financing solution is especially valuable for SMEs, startups, and firms operating in industries like logistics, construction, and wholesale trade—where extended trade credit terms are common. With the growth of fintech lending platforms in Singapore, invoice financing is now more accessible, featuring fast approvals, minimal paperwork, and real-time integration with accounting tools.
Ultimately, invoice financing acts as a liquidity bridge, helping businesses overcome cash flow gaps and capitalize on growth opportunities without increasing their debt burden.
Invoice financing is a form of asset-based lending that helps businesses unlock cash tied up in their accounts receivable. Rather than waiting for customers to pay on extended terms, companies can convert these outstanding invoices into immediate working capital. This financing model falls under the broader category of alternative finance, designed to improve liquidity without taking on long-term debt.
There are primarily two types of invoice financing:
– Invoice Factoring – A business sells its unpaid invoices to a third-party lender (known as a factor). The factor advances a percentage of the invoice value (typically 70%–90%) and takes responsibility for collecting payments directly from the customer. This method can ease the burden of credit control and collections.
– Invoice Discounting – The business retains control of its sales ledger and collections while using its invoices as collateral. A lender advances funds based on the value of the trade receivables, and repayment is made once customers settle their bills. This option provides greater confidentiality, as customers are often unaware of the financing arrangement.
Both models are designed to bridge cash flow gaps, enabling firms to pay suppliers, cover operational expenses, or invest in growth without waiting for client payments. Ideal for small to mid-sized enterprises (SMEs), invoice financing is especially useful in industries where extended payment terms are standard practice, such as manufacturing, logistics, and wholesale.
As digital lending platforms evolve, invoice financing has become faster, more flexible, and integrated with accounting tools—allowing seamless fund access and simplified reconciliation.
Not in the traditional sense. It’s technically an advance against accounts receivable, and it doesn’t add debt to your balance sheet like a conventional loan. This makes it a more flexible financing option for many growing businesses.
There are primarily two types: invoice factoring and invoice discounting. Factoring involves selling your accounts receivable to a third party (the factor) who takes over collections. Discounting, on the other hand, allows you to retain control over your invoices while receiving an advance from the lender, keeping the arrangement confidential from your customers.
Typically, small to medium-sized businesses with B2B operations and a consistent invoicing system are eligible. Providers often assess a company’s invoicing history, debtor creditworthiness, and the industry sector before approval.
Funding turnaround can be very fast—sometimes within 24 to 48 hours after invoice verification. The speed may depend on the lender’s internal process and your documentation readiness.
Yes. Since invoice financing is based on future payments from your customers, lenders evaluate your clients’ creditworthiness. High-risk customers may reduce your financing limit or lead to a higher fee structure.
In the case of invoice discounting, the process is confidential and your customers won’t be notified. With factoring, the provider may interact directly with your clients for payment collection, which could impact how your customers perceive your business.
Ensure that your invoices are clear, detailed, and sent out promptly. This increases the likelihood of faster approvals and reduces disputes during the invoice verification process. Include precise payment terms and client information to streamline the lender’s due diligence.
Since the repayment depends on your clients’ ability to pay, perform credit risk assessments on key accounts. Some lenders may reject invoices tied to high-risk debtors, or offer reduced advance rates for them.
Each provider will have its own pricing model—typically a service fee and a discount rate. Review all lending terms carefully, including contract length, exit fees, and whether the financing is recourse or non-recourse. This will help you avoid hidden costs.
If maintaining customer relationships is crucial, invoice discounting (which is confidential) may be more suitable. However, factoring can be beneficial if you need help with debtor management and collections.
Don’t treat invoice financing as a one-off solution. Use it as part of your working capital optimization and financial forecasting efforts. Track how quickly clients pay and adjust financing volumes accordingly.
Mastering your loan moves starts with understanding the real cost of borrowing. We believe in empowering you with the right knowledge to make smart financial choices, not quick fixes that lead to debt traps. Our commitment is helping you borrow wisely and stay in control of your money.
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.Don't be a fool! #roshi #singapore #lending #borrowing
Trust the original! #roshi #singapore #lending #borrowing
.Don't be a fool! #roshi #singapore #lending #borrowing
Trust the original! #roshi #singapore #lending #borrowing
.Don't be a fool! #roshi #singapore #lending #borrowing
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