Having a hard time finding a reliable name for invoice factoring Singapore? No fuss, we’ve got you covered. In this article, you’ll know how to find the best invoice factoring company in Singapore. But before we go any further, it’s important to know what exactly is invoice factoring.
What is Invoice Factoring?
Invoice factoring is a type of debtor finance in which a service provider or retailer sells its accounts receivable to a 3rd party company at a discount. Businesses opt for invoice factoring to meet their immediate cash needs. There’s no dearth of companies offering invoice factoring services. However, you’ll need to perform due diligence to make sure you’re working with a reputed and well-established invoice factoring company. The following some important points should consider when choosing Singapore invoice factoring services:
Factoring companies come in different sizes and shapes. Always look for one who really understands your business model and is fully aware of the industry your business operates in. There’s no use to work with a factoring firm that’s not familiar with your business model.
Time is money in the business world. So, never opt for a factoring firm that rarely responds to their customer’s queries. A professional factor company will always be available to listen to its clients. So prefer a company with a dedicated team of customer support.
Be sure to look into what type of flexibility they offer to their clients. An intelligent business owner will always ask some or all of the following questions to a factoring firm before working with them:
- Do I need to sell all of my invoices?
- Am I required to sign a guarantee, whereby I will be held responsible for any outstanding invoices?
- Do I need to factor invoices for all of my clients?
- Am I bound to remain in factoring relationship for a specific time?
Asking such questions will surely help you know what type of flexibility they offer to their customers.