Release cash from unpaid invoices in 24–48 hours.
If your B2B business has outstanding invoices, you already have the collateral. Invoice financing converts up to 90% of your receivables into cash — without waiting 30, 60, or 90 days for clients to pay.
How invoice financing works
You issue the invoice
You complete work or deliver goods and issue a B2B invoice to your customer — standard 30, 60, or 90-day payment terms.
Submit to the financier
You submit the invoice (and sometimes supporting documents like purchase orders or delivery notes) to the financing platform or bank.
Receive 85–90% upfront
Within 24–72 hours, the financier releases 85–90% of the invoice value to your account. You can use the cash immediately.
Your customer pays the financier
On the invoice due date, your customer pays the full invoice amount directly to the financier (or to you, if it's a non-disclosed facility).
You receive the remainder
The financier releases the remaining 10–15%, minus their financing fee (typically 1.5–3% of invoice value). The cycle is complete.
How invoice financing compares
| Feature | Invoice Financing | Term Loan | Overdraft |
|---|---|---|---|
| Best for | Businesses with outstanding invoices | One-time capital need | Ongoing cash buffer |
| Collateral needed | Invoices (self-collateralising) | Often required | Often required |
| Approval speed | 24–72 hours | 3–7 business days | 5–10 business days |
| Funding amount | Up to 90% of invoice value | Fixed sum | Revolving limit |
| Repayment trigger | When client pays | Fixed monthly schedule | Flexible, interest-only option |
Who uses invoice financing in Singapore?
Invoice financing works for any B2B business that issues invoices with payment terms of 30 days or more. It does not work for B2C businesses (retail, restaurants, e-commerce) because consumer receivables are not structured as invoices.
Service businesses
IT consulting, design, engineering, staffing, cleaning — anyone billing by project or retainer.
Contractors and subcontractors
Construction, M&E, civil works — progress billing on long projects ties up cash for months.
Manufacturers and traders
You produce or import goods, deliver to retailers or distributors, and wait 60 days for payment.
Healthcare and medical
Clinics or labs billing insurance companies or government health schemes with long payment cycles.
Logistics and freight
Freight forwarders, 3PL operators billing major shippers or manufacturers.
Invoice financing platforms we work with
CLIENT EXAMPLE
A Clementi IT services firm had $340K in outstanding invoices from two Singapore-listed clients, both on 60-day terms. Using Funding Societies, they unlocked $296K in 36 hours — financing 87% of the receivables at a 2.1% monthly fee. The cash went towards hiring 4 engineers to fulfil a new contract that started the following week.
Frequently asked questions
Is invoice financing a loan?
Technically, invoice financing is not a loan — it's an advance against an asset (your receivable). The financier purchases or lends against your invoice rather than underwriting your general creditworthiness. This is why it is faster and easier to approve than a working capital loan: the financier cares primarily about your customer's ability to pay, not your own balance sheet. Because it's not a traditional loan, it also typically doesn't appear as debt on your balance sheet.
What is the difference between invoice financing and invoice factoring?
Invoice financing (also called invoice discounting) means the financier lends you money against your invoice, but your customer still pays you — then you repay the financier. You maintain the customer relationship. Invoice factoring means the financier buys the invoice outright and collects directly from your customer. Factoring is more common for businesses that want full administration handled, but some customers react negatively to a third party collecting from them. We explain which structure suits your situation.
Which industries use invoice financing most in Singapore?
Invoice financing is built for B2B businesses with 30–90 day payment terms. Common sectors: construction and engineering (progress billing), IT services and consulting, staffing and recruitment, manufacturing and trading, logistics and freight, healthcare services billing government or insurers. If you issue invoices to businesses or government bodies and wait more than 30 days for payment, invoice financing is worth considering.
Can I finance invoices to government or GLC clients?
Yes — government and GLC counterparties are actually the most attractive for invoice financiers because the credit risk is minimal. Invoices to Singapore government bodies, statutory boards, GLCs, and large public-listed companies typically get approved faster and at better rates because the financier is confident the counterparty will pay. If you're doing work for MOH, HDB, or a Singapore-listed company, your invoices are likely financeable.
What happens if my customer doesn't pay the invoice?
For recourse invoice financing (the most common type), you are responsible for repaying the advance if your customer doesn't pay. Non-recourse financing transfers the credit risk to the financier — but is less common and more expensive. Before approving any invoice, the financier will assess your customer's payment history and creditworthiness. We help you understand the risk allocation in any facility before you sign.
Last updated: April 2026
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