Factoring
Factoring, also referred to as invoice financing or accounts receivable factoring, is working capital solution that enables businesses in Singapore to unlock the value of their outstanding invoices.
By converting unpaid receivables into immediate liquidity, companies can access up to 90% of invoice value without waiting for lengthy payment cycles.
Why Choose Our Factoring
Customisable according to business needs
Facility limit of up to $3M
Up to 90% of invoice value
Financing tenure up to 180 days
High-risk industries accepted (eg. construction, marine, manpower, services)
Early-stage funding available for the construction industry
Participating Financial Institution of
Eligibility
Singapore-registered businesses
Minimum 30% shares held by Singaporean or PR Director
No minimum business operating time
Uses of Invoice Financing and Factoring
Optimise Cash Flow
Get an immediate advance on your outstanding sales invoices the moment they’re issued. This ensures you have the liquidity to cover overheads or take on new projects without being held back by slow-paying clients.
Fuel Business Expansion
Bridge the gap between fulfilling large orders and receiving payment. By converting your accounts receivable into working capital, factoring allow you to confidently invest in talent, equipment, or marketing to scale your operations in Singapore and beyond.
How Does it Work?
Factoring provides a lifeline for businesses needing fast access to cash. The beauty of it? It eliminates the frustrating wait for customer payments, injecting vital funds into your business exactly when you need them.
While a traditional SME business loan in Singapore usually involves fixed monthly repayments, factoring lets you leverage your unpaid invoices as collateral to unlock immediate liquidity. Instead of chasing debtors, you receive a percentage of your invoice value upfront from GB Helios to keep your operations moving.
Applying for factoring with us is simple. Simply contact us through our contact form and receive tailored factoring solutions for your account receivables.
Application and Approval
The application will typically require information about the business, including financial statements and accounts receivable aging reports. Our expert team swiftly verifies your invoices and assesses your customer's creditworthiness.
Sale of Accounts Receivable and Financing
Once it is approved, the business will sell its accounts receivable to us at a discounted rate, typically around 90% of the face value directly, allowing you to fulfill your orders and maintain positive relationships with your suppliers.
You maintain control and continue to nurture your customer relationships while we handle the collection process. Once your customer pays, you receive the remaining balance, minus our competitive fee, completing the cycle and maximising your cash flow.
Frequently Asked Questions About Factoring
What are the key benefits for factoring / invoice financing?
Factoring offers a dynamic alternative to traditional loans for businesses, providing immediate liquidity without the weight of long-term debt. Here is how it empowers your business:
- Suitable for Businesses Without Extensive Credit History: We get it – not every business in Singapore has a long credit history, especially if you’re a Small or Medium Enterprise. This makes it an ideal solution for newer businesses or those with limited credit history looking to access funding and propel their growth.
- Fuel Growth with Improved Working Capital: Don't let delayed payments hold you back. Waiting 30, 60, or even 90 days for customers to pay can cripple your cash flow and stifle your ambitions. Factoring inject immediate liquidity into your business, converting your invoices into cash. This gives you the financial firepower to cover expenses, invest in new opportunities, and navigate short-term financial challenges.
- Mitigate Risk and Focus on What Matters: Chasing late payments can be a drain on your time and resources. Factoring takes the weight off your shoulders. By transferring the risk of non-payment to us, you free yourself from the burden of debt collection. This allows you to focus on what truly matters: growing your business, innovating, and delighting your customers. Reclaim your time and energy, and let us handle the financial complexities.
What are the fees for factoring?
Factoring fees vary depending on factors such as the volume of invoices factored, the creditworthiness of your customers, and the terms of the agreement. We believe in transparency and will provide you with a clear breakdown of fees upfront.
How much can I borrow through factoring?
The amount you can borrow through factoring depends on the value of your invoices and your business's needs. We offer flexible facility limits of up to $3 million, allowing you to access the funding you need to fuel your growth.
What types of invoices can be factored?
We can factor a wide range of invoices, including those for goods and services. We work with businesses across various sectors, including those considered high-risk, such as construction, marine, manpower, and services.
How long does it take to get funded through invoice financing?
Our streamlined invoice financing process ensures quick access to funds. Once your invoices are verified, you can typically expect to receive funding.
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Disclaimer: The information provided on this page is for general informational purposes only and does not constitute financial, legal, or professional advice. While we make every effort to ensure the content is accurate and up to date, GB Helios accepts no responsibility for any loss or liability that may arise from reliance on this information.