Separate the amount from the date

An expected customer payment is not cash already available. Build a simple calendar showing opening cash, expected receipts and upcoming payments. Record each amount with its expected date.

Mark assumptions clearly

Distinguish confirmed receipts from estimates and list payments such as rent, supplier invoices and wages. In an illustrative example, a payment due on Friday cannot be covered by a receipt expected the following Tuesday without another source of cash.

Review the timing gap

Update the calendar when dates change. Explore whether the timing can be adjusted with the relevant customer or supplier before comparing funding options. If you seek finance, review its costs and repayment dates against the calendar; a forecast alone does not establish affordability.

Further reading

Read the official guidance.

Two ways to fund a business

Sales invoice financing releases part of the value of an eligible unpaid invoice before the customer pays. A business term loan provides an approved amount for a broader business purpose, with repayments over an agreed period.

The distinction matters when planning cash flow. A receivable already exists when an invoice is financed; a new investment may take longer to generate revenue.

Compare the structure

Put the timing on paper

Illustrative example: a supplier is owed S$40,000 in 45 days but needs S$25,000 for stock now. An advance against an approved invoice could address that timing gap. The advance percentage and charges must come from an actual offer.

A separate equipment purchase may instead require funding that can be repaid over a longer period. Write down the purchase date, expected revenue dates and proposed repayment dates before selecting a facility.

Ask for the complete cost

Request all financing charges, fees, repayment dates and security requirements in writing. Check what happens if a customer pays late and whether the business remains responsible for settling a financed invoice.

Compare offers for the same amount and period. A quoted percentage alone does not show the dollar cost or the pressure repayments could place on the business.

Questions to take to a provider

• Which invoices or business purposes qualify?
• How much cash will actually be available after charges?
• When must each payment be made?
• Who carries the risk if a customer does not pay?
• Are guarantees or other security required?

Common questions