Discover whether invoice financing or a traditional business loan is better for your SME in Singapore. Learn the key differences, benefits, and how Factorglobe helps unlock faster working capital in 2025.
As Singapore SMEs gear up for growth in 2025, access to working capital remains a key challenge. Whether it’s to cover supplier payments, meet payroll, or fund expansion, the question remains: Should your business opt for a traditional business loan or go with invoice financing?
In this blog, we explore the differences, benefits, and ideal use cases for each—so you can make the right choice for your business.
Invoice financing, also known as invoice discounting or factoring, stands as a dynamic solution empowering SMEs to unlock cash conventionally tied up in unpaid invoices. Instead of enduring the often lengthy 30–90 days for customer payments, businesses can now rapidly receive up to 90% of the invoice value upfront from advanced platforms like Factorglobe. The remaining balance, after nominal fees, is then remitted once the buyer completes their payment, providing immediate and reliable working capital. This efficient mechanism exemplifies the core invoice financing definition: converting future receivables into present liquidity to supercharge your business operations.
✅ Best for: Businesses with B2B customers and long payment terms.
A business loan provides a lump sum of capital that is repaid over a fixed term with interest. Offered by banks and financial institutions, these loans are often used for expansion, hiring, or machinery purchases.
✅ Best for: Long-term capital expenditure or large investments.
Problem: A local electronics SME ships bulk orders to buyers in India and Vietnam with 60-day payment terms.
Challenge: Waiting for payments causes cash flow issues and missed growth opportunities.
Solution: The business uses Factorglobe to finance its unpaid invoices. It receives up to 90% upfront, improves liquidity, and reinvests into production—without taking on debt.
At Factorglobe, we help you convert unpaid invoices into immediate working capital—with zero collateral, fast approvals, and support for over 70 countries.
Factorglobe brings innovation to invoice financing in Singapore with smart, built-in AI tools designed to help SMEs improve accounts receivable financing strategies & reduce exposure to credit risk. Through our next-gen digital platform, accessing online invoice factoring is simpler and more empowering than ever before. You can tap into international factoring services and manage cross-border invoice factoring with a partner you can truly trust.
💼 Singapore-based SME?
You may be eligible for the Enterprise Singapore EFS-TL scheme through Factorglobe. Reach out to us for personalised support.
📩 Contact us at info@factorglobe.com or Apply Now to get started.
