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Text: How to Apply for an Invoice Finance Facility

How to Apply for an Invoice Finance Facility

Obtaining an invoice finance facility is easier than you think, especially with InvoiceInterchange.  We are your trusted finance partner that provides you with working capital support hassle-free.  Your business can get invoice finance facilities of up to SGD1 million to help you smoothen cash flow and boosts your business growth.

If this is your first-time considering invoice finance, here are answers to some of the most frequently asked questions.

  • How does invoice finance work?
  • How can invoice finance benefit my business?
  • Am I eligible for invoice finance?
  • Do I need to provide a personal guarantee or any other form of security?
  • How do I go about applying for the facility?
  • How long is onboarding and the draw-down process?
  • How much does it cost?

How does invoice finance work

For B2B businesses, sales are usually made on credit terms.  This means you only get paid 30, 60, or 90 days after goods or services have been delivered. Waiting to get paid can put a lot of strain on your business – especially when you have payroll, project costs, or other overheads to pay.

Invoice finance helps bridge this cash flow gap.  You can obtain flexible funding by selling your outstanding invoices to a financier for a small fee.  The financier advances the funds owed to you in outstanding invoices and you no longer have to wait for your customers to pay.

At InvoiceInterchange, businesses can draw down up to 80% of their outstanding invoice amounts.  The remaining 20% is transferred to you once payment is received from the customer in say 30, 60, or 90 days.

How can invoice finance benefit my business?

Invoice finance benefits businesses in a variety of ways.  Funds can be in a bank account within 24 hours* which means your business will be able to:

  • Cover operational expenses like salaries, supplier invoices, overheads, etc as and when you need the funds.
  • You pay only when you use the facility, so you have control over financing costs.
  • Give your business the confidence to win sales knowing that you have a reliable finance line to support the working capital needs that come with sales growth.
  • Negotiate better pricing with your suppliers as you can now offer to pay your suppliers earlier.

Check out other benefits in our previous blog here.

*Upon successful verification of invoice

Am I eligible for invoice finance?

The credit assessment for an invoice finance facility is different from a typical business loan.  The focus is not so much on your business strength but more so on your customers’ strength and creditworthiness.  Your business is more likely to qualify for an invoice finance facility if your customers are one of the following:

  • MNCs
  • Listed on the stock exchange or subsidiary of a listed company
  • Government agencies
  • Greater than SGD30 million in annual turnover

Other eligible criteria:

  • Singapore registered company
  • Minimum turnover SGD250,000
  • In operation for more than 6 months

Do I need to provide a personal guarantee or any other form of security?

A personal guarantee from the Director(s) of the company is normally required.  Other forms of security may also be necessary depending on the final structure of the solution. 

How do I go about applying for the facility?

Applying for an invoice finance facility is easy, especially if your accounts are recorded via Xero.  The InvoiceInterchange platform can connect to your Xero account (with your consent) and automatically retrieve relevant information to expedite credit assessment.  You can also opt to complete our simple online application here.   Information that we usually need includes:

  • Company registered details
  • Financial statements
  • Bank statements
  • Invoice(s) that you are looking to drawdown against
  • Director’s identification

How long is the onboarding and draw-down process?

No one wants to wait for weeks or months on end for an outcome to an application.  At InvoiceInterchange, we process your application within 3 business days provided all the required information has been shared with our team.  Once you are onboarded, you can start drawing down against your invoice and receive funds in your business bank account as quickly as a few hours*.

How much does it cost?

The pricing structure for an invoice finance facility at InvoiceInterchange is simple.  There are only 2 straightforward fees:

  • Transaction fee: A flat percentage against each funded invoice.
  • Discount fee: Interest accrued on a daily basis against the advanced amount.

There is no minimum drawdown fees, audit fees, bank fees, settlement fee, etc.  We also do not lock you into a fixed-term contract.  It is fully flexible so you draw down only as and when you need funding.

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Apply for free in less than 2 minutes with Xero integration or via our online application form. Boost your business growth with Invoice Finance today.