text: Invoice finance vs contract finance

Invoice Finance vs. Contract Finance

Invoice Finance (or Invoice Factoring) is a form of cash flow finance where a business can draw down funds against its outstanding invoices or its receivables.  Contract Finance on the other hand allows businesses to draw down funds against its future recurring revenues based on invoices that are scheduled to be issued against a signed contract or sales agreement.

Examples of such contracts include:

So, if your business offers a service (such as marketing, consulting, IT software and solutions etc) and receives regular recurring payments from your customers, then Contract Finance could be a beneficial cash flow tool for your business.  Rather than waiting to be paid each month over the course of your contract, you could bring forward these payments by up to 6 months and deploy funds where your business needs it most.  You could invest in more R&D, new projects, take on larger jobs, or perhaps spend on marketing activities.

Contract Finance – How does it work?

InvoiceInterchange offers straightforward Contract Finance for businesses based in Singapore and Australia. 

Once you are onboarded, simple log into your InvoiceInterchange account and upload the Contract your wish to finance for example your Sales Agreement and/or Purchase Order.  We will then review your documentation and may ask for additional information.  Upon verification, funds of up to 6 months’ worth of future recurring revenue will be disbursed to your business bank account within 24 hours. 

As we receive payments from your customer against your contract, the outstanding finance will be reduced.

Frequently Asked Questions

Do I need to fund every future invoice?

No, you can select to obtain funding of up to 6 months’ worth of future recurring revenue.  Before the 6 months is up, you have the option to fund additional future invoices again.


Can I pay back early?

Yes, at InvoiceInterchange, you are able to pay back any amount of the outstanding balance at any point in time without any additional fees or penalties. In this scenario, any payments from your customer (which has already been paid early by your business to us) will be routed through to you.

What happens if my contract terminates earlier than expected?

In the event where you have drawn funds upfront on your contract but the contract is cut short or cancelled, your business will be obligated to repay the portion of future revenue received that is now no longer going to be paid by your customer.

So why wait?  Talk to one of our team members to see how we can customise a Contract Finance or Invoice Finance product to suits your business needs.

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