Factoring Loans in Singapore

Factoring loans, also known as factoring receivables, is a financing option that empowers you to improve your liquidity with your unpaid invoices. Unlock your invoices into cash and receive up to 90% of the invoice value today.

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How Can Factoring Loans Help Your Business?

Factoring loans or SME working capital loans are designed to address short-term operational needs, covering day-to-day expenses like payroll and inventory. They are focused on maintaining the immediate financial health of small and medium-sized enterprises without necessitating extensive collateral.

Benefits of Factoring Loans

Here are a few common reasons why SMEs applied for factoring loans:

  • Suitable for SMEs Without Credit History: Instead of relying heavily on the borrowing company's creditworthiness, this type of loan primarily considers the creditworthiness of your customers. This makes factoring a viable option if you run an SME and are looking for working capital without an extensive credit history.
  • Improved Working Capital: By converting accounts receivable into cash, factoring loans can enhance your SME's working capital position. This liquidity can be used to cover operating expenses, invest in growth opportunities, or address short-term financial obligations.
  • Risk Mitigation: Factoring loan transfers the credit risk of non-payment from your business to the factoring loan provider. The loan provider assumes the responsibility of collecting payments from customers, reducing the business's exposure to bad debts.
  • Focus on Core Operations: By outsourcing the accounts receivable management and collections process to the factoring loan provider, you can focus more on your business’s core operations and strategic initiatives.

Why Factoring Loans?

Customisable according to business needs

No minimum business operating time

For Singapore-Registered Businesses

Minimum 30% shares held by Singaporean or PR Director

Facility limit of up to $3M

Up to 90% of invoice value

Loan tenure up to 180 days

High-risk industries accepted (eg. construction, marine, manpower, services)

Early-stage funding available for construction industry

Convenient Giro Payments
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Apply for a Factoring Loan

You can apply for a factoring loan by contacting us through the below form to help you get started on the application process.

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Bridge the Financial Gap with GB Helios

At GB Helios, we help SMEs in Singapore gain access to working capital - short-term funding solutions to cover operations, supply costs or even rental costs. Talk to us to apply for our Factoring or for a complimentary consultation on a tailored financing plan for your business, which may include other loans for businesses - such as Unsecured Term Loans or Payables Financing in Singapore.

Advantages

The Advantages You Will Get

We have in place structures on how to strategise for your businesses' protection and preservation in the current age of technology and sustainability.

Up to 80% of invoice amount
Facility Fee: One-time fee of up to 1% of loan amount
Interest Rate
Loan Tenure
Fast approval & disbursement

How Does It Work?

Risk Management Explanation (Identify, Measure, Implement, Monitor/Control, Report)

How does it work?

Take a look how to apply our product financing. It's so simple and easy to apply

Application and approval

The application will typically require information about the business, including financial statements and accounts receivable aging reports.

Sale of accounts receivable and loan disbursement

Once the loan is approved, the business will sell its accounts receivable to the finance company at a discounted rate, typically around 70-90% of the face value.ectly from the financing company, allowing you to fulfill your orders and maintain positive relationships with your suppliers.

Loan servicing and repayment

During the loan repayment period, the finance company will provide loan servicing, which includes collecting payments from the business's customers and updating the loan account information.

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The process was quick and straightforward, and the funding was disbursed almost immediately. Plus, I no longer had to worry about collecting payment from my clients, which freed up a lot of time and energy for me. The repayment terms were flexible and allowed me to pay back the loan as my business's cash flow allowed. I would definitely recommend Factoring Loan to any business owner who needs a quick and flexible funding solution, without taking on additional debt or sacrificing their financial stability."
Jerhemy
Position, Company name

FAQs

Is my business eligible for Factoring loans?

Yes, we do not have any minimum for business operating time, so even startups can use this financing option as long as they have invoices as collaterals - as long as your business is registered in Singapore.

Is there any minimum amount required for Factoring loans?

There’s no minimum amount for this financing option as the loan amount is based on the value of the invoices.

How do I make the monthly repayments for Factoring loans?

The monthly repayments for the loan will be done through GIRO.

What documents are required for Factoring loans?

- Latest 2 years financial statements
- Latest aging list (payable and receivables)
- Latest 6 months bank statements
- Director(s) and Shareholder(s) NRIC or Passport, latest 2 year NOA and CBS report
- Additional documents may be required. This is determined on a case by case basis. Our team will reach out to you once your application is received.

What are the charges and fees involved for Factoring loans?

Some common fees and charges that businesses may encounter when obtaining factoring loans include : Factoring fee, Service fee, Reserve account fee & Late payment fee

How do I apply for Factoring loans?

The following steps are involved : Application, Due diligence, Approval, Acceptance, Invoice submission, Funding.

How do I make the monthly repayments for Factoring loans?

Businesses typically make monthly repayments for factoring loans based on a repayment schedule provided by the factoring company. Payment options may include electronic funds transfer, direct debit, or online payment portals, and some factoring companies may automatically deduct the repayment amount from the business's bank account. The factoring company may hold a portion of the advanced funds in a reserve account to cover any unpaid invoices or customer disputes, and late payments may result in fees and/or interest charges.

Resources

Press & media, financing guides and more

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Articles
Guide to Understanding Financial Planning for Business Success
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Articles
GB Helios CONNECT: F&B
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Articles
Guide to Business Credit Scores in Singapore
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