SG Bank Loan

Nobody will tell you what invoice financing costs.

We opened the published pages of 8 Singapore lenders looking for one number: the rate they charge to advance you money against an unpaid invoice. Every one of them either says nothing, points at a calculator you have to type a rate into, or asks you to apply for a quote. You cannot compare offers on this product without applying for all of them, which is the opposite of how it is marketed.

So this page does not tell you a rate. It takes the rate you were quoted and tells you what it actually annualises to, which is the part the quote leaves out.

The same invoice, financed two waysOn a S$100,000 invoice paid in 45 days, a bank line annualises to 9.03% and a factoring deal to 21.47%, 2.38 times as much.9.03%Bank line21.47%Factoring2.38×The gap
Both bars are annualised on the cash you actually receive, on one S$100,000 invoice paid in 45 days. Both rates are illustrative, because no lender publishes one. Change the inputs below and this redraws.

What each lender will actually tell you in public

What 6 Singapore lenders publish about invoice financing on their own pages, read 2026-08-20
LenderAdvanceFee publishedRate published
OCBC80%0.25%, minimum S$100No
DBS90%Not publishedNo
UOBNot published0.125%, minimum S$75No
IFS CapitalNot publishedNot publishedNo
ValidusNot publishedNot publishedNo
Funding Societies90%Not publishedNo

Read on 2026-08-20 from each lender's own pages. Figures are quoted as published and are not an offer. A handling fee is not the price of the money, it sits on top of a rate none of them will state.

One exception worth stating plainlyIFS Capital does publish a number: "SGD Enterprise Base Rate 7.5%, rates (p.a.) effective from 24 September 2024". We have still marked it as not publishing a rate, and that is deliberate. A base rate is the reference a margin is added to, not the price of a receivables facility, and IFS Capital's own page says its published rates "do not constitute or form part of any offer". If you check that page and see 7.5%, that is not what the facility costs.

One lender publishes its formula, and contradicts itself

OCBC is the only one of the 8 that shows how the bill is built. Its calculator states the interest as "Interest Rate x (no. of days/365) x Loan Amount", which is the honest way to charge for a short advance. On the same page, the fee is described twice and the two descriptions do not agree.

  • The fees line says: "0.25% of the invoice amount. Minimum fee of S$100 applies."
  • The calculator legend says: "Handling fee: 0.25% x Loan Amount"

On an 80% advance those are not the same number, because the loan amount is 80% of the invoice amount. On a S$100,000 invoice the difference is S$50. Small in isolation, and worth asking about, because it tells you which base every other fee on the facility is calculated from. We have recorded both statements rather than picking the one that suits an argument.

The word covers two different products

A bank line charges a rate per year on what you actually drew. A factoring company charges a percentage of the invoice's full face value per 30 days, and only advances you part of it. Those are not two prices for one thing, they are two mechanics, and the gap between them is larger than any negotiation you are likely to win.

A bank invoice financing line and a factoring deal on the same invoice, at the amounts and rates entered above
On the same invoiceBank lineFactoring

Against a term loan, the rate is the wrong question

Invoice financing costs more per day and costs nothing while you are not using it. A term loan costs less per day and charges you for every day of its tenure, whether you needed the money that month or not. Comparing the two rates tells you almost nothing. What decides it is how often you are actually short.


Factoring, over a year

Term loan, over a year

What this does and does not tell you

It converts a quote into an annual rate, and it finds the point where two ways of borrowing cost the same. The starting rates are illustrative, because no lender publishes one, so put your own quote in. It does not tell you what any lender will offer you, it is not a recommendation of one product over another, and a rate is only one line of an offer. Advance rates, recourse, which customers a lender will accept and what happens when an invoice is paid late all matter and none of them are published either.

Why small facilities cost proportionally more

Send us the quote and we will tell you what it annualises to

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