Online Factoring company in Singapore
Factoring is a financial service where you sell your receivables account to a third party. In return, you receive upfront funds based on your receivables accounts. This party is known as a “factor”. A factor can be a person, company, a financial institution that offers such financial services. Usually, companies and business owners make use of this service by selling their outstanding invoices to a factor to receive immediate funding.
Factoring companies facilitate Invoice factoring. Factoring companies act as the “factor” in the process of invoice factoring. You can approach them for factoring your accounts receivable. Once your application is verified and approved, a factoring company credits you with a certain percentage of the approved invoice amount (typically 80-90%). This is an upfront payment paid by the factoring company to its client. In the next step, a factoring company directly collects the invoice amount from your customer when it is due. Once your customer pays off the invoices, the factoring company then credits the rest of 20% to you deducting a small service fee.
Factoring companies in Singapore also work in the same way. They make an upfront payment based on your approved invoices and then collects the invoiced amount from your customers when the time is due. You’ll be paid by the factoring company the rest of 20% once the invoices are cleared.
In summary, these are the major things a factoring company does for its clients:
- Provide funding based on the invoices
- Management of customer payment schedule and collection of invoices
Online Factoring Companies In Singapore
There are online factoring companies in Singapore. Finaxar is a leading online factoring company based in Singapore. In general, these companies carry out the processes online which reduces a lot of hassle you have to go through while using the traditional financial services.
- They allow you to apply online
- You can submit your invoices by integrating the online accounting software you are using for your business.
- The verification process both online and manually in the factoring companies
- The invoices get approved within 3 business days.
- The cash disbursement happens within the 24 hours of approval
How Do You Apply To Online Factoring Companies?
Applying to an online factoring company is a simple two-step procedure. First, you need to create an account on the website of the factoring company. This is as easy as signing up for any other account online. In the next step, you’ll need to sync your accounting software like Quickbooks or Xero to this account.
Once you have done these two steps, the factoring company will then proceed to verify your credentials and approve the invoices. At Finaxar, you can directly apply for our services by creating an account with us. It is a simple process and there is no application fee charged.
Finaxar Is A Trusted Online Factoring Company In Singapore
Finaxar is an online factoring company in Singapore. We offer to factor accounts receivable for companies and SMEs who are in need of quick fund. Our application procedure simple and easy. You can create your account on Finaxar here and integrate your accounting software with the account.
Our cash flow expert team will manually go through your applications and records and approve the invoices that can be cashed out. Once approved, which happens within 3 working days at Finaxar. We will then credit you with an upfront payment of 80% of the invoiced amount within 24 hours.
There is no fee collected till this point and you don’t have to worry about the rest of the invoice amount being lost. We then proceed to collect the invoices from your customers when it is due. Once they pay off the invoices, we will then credit you with the rest of the 20% of the invoiced amount. At this stage, we will deduct a small service fee you and that is the only fee you need to pay.