Fintech in Singapore: The future of our money

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“Singapore’s fintech sector has been a great growth story with more than 400 fintech firms in the country and a lot more being added every year.”

Fintech apps that provide peer-to-peer lending services have introduced new business models to fill in gaps left by traditional lenders, like banks. These apps incorporated the use of big data and artificial intelligence (AI) to accurately access an individual’s credit profile and his/her ability to repay a loan. As such, potential borrowers that are ignored or rejected by the larger financial institutions can use this platform to finance their needs.

Fintech has the potential to transform how the world operates. Anything that involves transferring of money, ordering of food, grocery shopping, buying of new clothes or getting a loan, can be improved by fintech. This is because fintech solutions are not restricted by geographical borders, company can expand their business globally by tapping on the fintech services. According to the quarterly report by KPMG, Singapore has achieved a record high of US$229.1 million (S$312 million) of fintech funding last year. In the next five years, Singapore will foresee to become one of the world’s fintech capitals as it is in the middle of India, China, and South-east Asia.

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Invoice Financing: Here’s Why You Should Take Advantage of It

“We cannot do anything to change how we use credit terms in business. However, there is something that we can do with unpaid invoices.

We call it invoice financing.”

A study done by the largest credit insurer in the world revealed that Singapore has the highest number of unpaid invoices in the Asia Pacific countries. This poses a great challenge to the businesses in Singapore as late payment will cause their cash flow to be affected and leading them into debt and bankruptcy.

Therefore, with invoice financing, businesses have the option to sell their unpaid invoices to financial institutes at a discount. This enables businesses to improve on their cash flow even though the client’s payment for the invoice is still 60 or 90 days away and allows them to receive funds immediately. With improved cash flow, businesses can offer better payment schedules to their clients and in a way keeps their company competitive as it attracts more clients.

Moreover, invoice financing also helps to keep the credit low and hence businesses do not have to worry about their debt level is too high to borrow a large business loan.

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