Trade and cashflow support

Trade Financing

Trade financing helps Singapore businesses manage supplier payments, unlock cash from receivables, and provide payment assurance when dealing with customers, suppliers, landlords, project owners, or government agencies.

Import, export, and assurance

Trade Facilities for Working Capital Timing Gaps

Trade financing is useful when a business needs to pay suppliers before sales proceeds are collected, give customers longer payment terms, or provide a guarantee that contractual or payment obligations will be met.

Buyer Side

Purchase Invoice Financing supports procurement by helping pay supplier invoices first, so cash can be preserved for other operating needs.

Seller Side

Sales Invoice Financing advances cash against unpaid customer invoices before the buyer makes payment.

Assurance

Banker's Guarantees and Standby Letters of Credit provide payment or performance assurance to beneficiaries.

For buyers and importers

Purchase Invoice Financing

Purchase Invoice Financing helps a business finance local or overseas procurement of goods or services. The bank may pay supplier invoices first, and the borrower repays the financing amount plus interest later.

How it helps

It can free up working capital that would otherwise be tied up in payables, supporting inventory purchases, project fulfilment, and supplier relationships.

Typical financing reference

Certain bank facilities may finance up to 100% of supplier invoice value for open account trade, subject to facility approval and bank terms.

Purchase invoice financing trade cycle showing buyer, supplier, and bank payment flow — Purchase Invoice Financing: supplier ships goods, the buyer requests financing, the bank pays the supplier, and the buyer repays the bank by the due date.

For sellers and exporters

Sales Invoice Financing

Sales Invoice Financing helps unlock cash from receivables by providing an advance on unpaid invoices before the buyer pays. This can help businesses offer customers payment terms without carrying the full cashflow strain.

How it helps

It supports businesses that have delivered goods or services but need liquidity before customer collection, especially where sales are on credit terms.

Typical financing reference

Certain bank facilities may advance up to 90% of invoice value for domestic and cross-border open account sales, subject to bank assessment.

Sales invoice financing trade cycle showing seller, customer, and bank payment flow — Sales Invoice Financing: the seller ships goods, requests invoice financing, the bank advances funds, and repayment is settled when payment falls due.

Payment and performance assurance

Banker's Guarantee / Standby Letter of Credit

A Banker's Guarantee or Standby Letter of Credit helps reassure a beneficiary that payment or contractual obligations will be met. These facilities are commonly used when a counterparty needs stronger assurance before awarding a contract, extending credit terms, releasing goods, or accepting a tender.

Banker's Guarantee

A bank undertaking to pay the beneficiary if a valid claim is made according to the guarantee terms. Common use cases include lease agreements, contract agreements, project tenders, bid bonds, and performance bonds.

Standby Letter of Credit

A payment commitment used in domestic or cross-border transactions, where payment is made when the documents or demand specified in the SBLC are presented.

Payment guarantee for supplier or buyer obligations
Bid bond or tender guarantee for project submissions
Performance bond for contract performance obligations
Lease, government, or regulatory guarantee requirements

Choosing the right structure

Which Trade Facility Fits Your Situation?

You Need to Pay Suppliers

Consider Purchase Invoice Financing when your business needs stock, goods, or services before customer cash is collected.

You Are Waiting for Customers

Consider Sales Invoice Financing when invoices have been issued and you need cashflow before buyer payment is received.

You Need to Give Assurance

Consider a BG or SBLC when a beneficiary needs a bank-backed commitment for payment, tender, performance, lease, or contract obligations.

Ready to structure your trade facility?

Consult with MortgageLogic Advisory

Speak with us to review your trade cycle, customer terms, supplier requirements, and financial documents before approaching lenders.

No-obligation assessment

Documents Required

Please prepare the following documents so we can evaluate your eligibility.

Latest 6 months' corporate bank statements
Latest 2 years' financial statements or latest management accounts
Copy of NRIC for all directors and guarantors
Latest 2 years' Notice of Assessment for all directors and guarantors
Supplier invoices, sales invoices, purchase orders, or contracts where applicable
Supporting trade documents such as delivery orders, shipping documents, or customer statements where applicable
Existing facility letters or trade finance statements, if any