How can I fund my business? An in-depth analysis
This article provides an in-depth overview of the different ways you can fund your business, in order to find the right fit.
Receivables discounting is when you use your accounts receivable as collateral to borrow money.
The loan amount usually ranges between 80% and 95% of the receivables value, which you will pay back with interest and fees to the lender upon maturity.
In receivables discounting, you are not selling your accounts receivable. You simply use them to collateralize a loan. Therefore, you still own the receivables and are responsible for collecting payment from customers.
Here is an example of receivables discounting.
In this receivables discounting example, you will be given $20,000 x 85% = $17,000 upfront. This amount plus interest and fees will be repaid on or before due dates specified by the lender.
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This article provides an in-depth overview of the different ways you can fund your business, in order to find the right fit.
Discover the differences between secured and unsecured loans in Singapore. Learn which loan type suits your needs & explore funding options with Choco Up.