Introducing Invoice Financing V2.0 from Funding Societies

In 2016, Funding Societies introduced Invoice Financing, a solution designed to help businesses unlock the cash tied up in their unpaid invoices. Unlike traditional business term loans, Invoice Financing allows businesses to free up money that’s already owed to them for services rendered, without taking on additional debt. This enables SMEs to use their funds for operational expenses or growth initiatives.

Fast forward to today, Funding Societies has launched Invoice Financing V2.0, an upgrade to the original product, offering even more flexibility and support for SMEs looking to improve their cash flow. In this article, we’ll explore the features of Invoice Financing V2.0 and how it can benefit your business.

What is Invoice Financing V2.0?

Invoice Financing V2.0 is an enhanced version of our existing Invoice Financing product. It allows SMEs to receive cash upfront based on their outstanding invoices, offering up to 80% of the invoice value. Businesses can access funding without the need for collateral, and the loan quantum can go as high as SGD 1 million. One of the major upgrades in Invoice Financing V2.0 is the introduction of pro-rated interest calculated daily, which means you can save on interest by repaying early.

Key Features of Invoice Financing V2.0

With Invoice Financing V2.0, SMEs can expect the following benefits:

1. Pro-Rated Interest on a Daily Basis

Unlike traditional invoice financing, where interest is fixed for the full term, Funding Societies’ Invoice Financing V2.0 calculates interest on a daily basis. If your clients pay their invoice early, you only pay interest for the days the loan was active. For example, if you take out financing for a 100-day invoice but your client pays on day 90, you’ll only pay interest for 90 days, saving you 10 days’ worth of interest.

2. Flexible Loan Tenors

One common issue with invoice financing is that the loan tenor is often tied directly to the invoice’s payment terms. However, with Invoice Financing V2.0, Funding Societies considers your clients’ payment history and offers loan tenors of up to 120 days. This flexibility ensures that SMEs are not penalised for late payments from their clients and have greater control over their cash flow.

3. No Collateral Required

Invoice Financing V2.0 does not require collateral, making it an ideal option for SMEs that may not have significant assets. This means you can access working capital quickly and efficiently without putting your business at risk.

4. Fast Turnaround Time

Need quick access to cash? With Invoice Financing V2.0, SMEs can receive funds within a matter of days. This fast disbursement ensures that businesses can continue operations smoothly without interruptions caused by cash flow constraints.

How Invoice Financing V2.0 Benefits SMEs

1. Releases Locked Cash

The primary benefit of Invoice Financing is that it unlocks cash tied up in unpaid invoices. By converting your receivables into liquid cash, businesses can invest in growth opportunities or address immediate operational needs.

2. Improves Cash Flow

With up to 80% of the invoice value available as financing, Invoice Financing V2.0 allows SMEs to maintain a positive cash flow, making it easier to manage day-to-day expenses and start new projects without waiting for clients to pay.

3. Easier Approval Process

Unlike traditional loans, which focus heavily on your business’s credit history, invoice financing evaluates the value of your outstanding invoices. This makes it easier for young businesses or those with limited credit history to access funding.

4. Reduced Paperwork

The application process for Invoice Financing V2.0 is streamlined, requiring minimal documentation. This saves time and effort, allowing businesses to focus on growth rather than administrative tasks.

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How to Apply for Invoice Financing V2.0

Applying for Invoice Financing V2.0 with Funding Societies is quick and easy. Here’s a step-by-step guide:

  1. Submit Your Application: Complete the online application form and submit your outstanding invoices.
  2. Review Process: Funding Societies will review your application, taking into account your invoices’ value and your clients’ payment history.
  3. Approval and Offer: Once approved, you’ll receive an offer outlining the financing terms.
  4. Receive Funds: Upon acceptance, you’ll receive up to 80% of your invoice value, typically within a few days.

Why Choose Funding Societies’ Invoice Financing V2.0?

Invoice Financing V2.0 is designed with your business’s needs in mind. By offering flexibility, pro-rated interest, and a fast approval process, it provides SMEs with a reliable financing solution to improve cash flow without the burden of additional debt. Whether you’re looking to fund new projects, manage operational costs, or seize growth opportunities, Invoice Financing V2.0 can help your business thrive.

Conclusion

Managing cash flow is one of the biggest challenges SMEs face, especially when clients delay payments. Funding Societies’ Invoice Financing V2.0 offers a fast, flexible, and cost-effective solution to this problem. With features like pro-rated interest, flexible tenors, and no collateral requirement, it’s easier than ever to unlock the cash tied up in your invoices and keep your business moving forward.

Ready to free up your cash and take your business to the next level? Apply for Invoice Financing V2.0 today!

Disclaimer: The information provided in this blog post is for general information purposes only and does not constitute legal or professional advice. Funding Societies’ Invoice Financing is fulfilled by FS Capital Pte. Ltd.

 

Dorcas Pang
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