Undoubtedly you will be quite aware that staying at the top of accounts receivable is very important for maintaining the healthy cash flow. But, reviewing the receivables & making collection takes plenty of time. Still, you have to get cash owed in the bank account as quick as possible. One best way you can ease this burden of collections as well as get paid much faster is factoring the sales invoices. However, what you need to know about invoice factoring & what are benefits of such type of business finance? In this post, we will check out everything related to invoice factoring and why you must consider best invoice financing singapore.

How’s Invoice Financing Totally Different From Factoring?

Invoice financing & factoring are two same kinds of the business financing, however they are not the same. With the invoice factoring, outstanding invoices will be sold at the discount to third party called as factor. This factor will be responsible to collect payment from the customers. When the factor gets paid by the customers, factor pays you the difference between amount that they advanced you & full value of invoices, minus the factoring fee.

Is Financing the Better Choice For Your Business?

When it boils down to this, it is just impossible to say if financing will be better idea for the business.  Each company’s financial situations are unique, and the different financing choices can make sense based on the specific situations. This said, financing tends to be the affordable choice than factoring.