FAQ

This section aims to answer any questions you might have about our services.     Don’t see your answer? Feel free to contact us through our Help Centre or through the contact form at the bottom of this page.

How Can Finaxar Help Me?

I have been advised against factoring. What are good reasons to factor?

A common misconception about factoring is that it’s very expensive and should not be used by small businesses except as a last resort to avoid liquidation. This is simply not true. Many businesses have cash-flow gaps due to the nature of their businesses. They can utilise factoring to close these gaps effectively and grow the businesses. In addition, since factoring is financing against your current Account Receivables, there is no long term debt on your company’s balance sheet.

What kind of financial products do you provide?

We provide a credit line facility that helps meet your  working capital requirements.
i) If you provide goods or services to other business, we can provide a line against your invoices to these businesses. 
ii) If you sell online through your own website through major platforms like Lazada & Amazon, or have a retail operation that accepts credit cards, we can provide you a merchant credit line against these credit card transactions.

Why should I choose Finaxar?

Traditional AR financing can pose inefficiencies for businesses due to its nature. Hence, we have created an improved alternative – unlike other institutions in Singapore, Finaxar is a fintech company offering all-digital financing at fair prices. Our goal is simply to offer you the fastest and most hassle-free financing options with greatly reduced paperwork.  

How is Finaxar different from a bank?

When making a funding decision, we evaluate your short-term cash flow history and the creditworthiness of your customers whereas banks focus heavily on your company’s balance sheet strength. Best of all, we will make a quick funding decision, while banks may take weeks – even months – to evaluate a financing decision, potentially resulting in loss of business opportunities due to slow turnaround times.

How does Finaxar interact with my customers?

Finaxar’s success depends on your success. It would not benefit Finaxar in any way if you were to lose a customer or to leave a negative impression. Therefore, we maintain the highest standards of professional conduct in all interactions and will not harass your customers for payment. Maintaining your customers’ goodwill and confidence is extremely important to us. We strive to make this a win-win-win situation.

Applying for Financing

How do I sign up with Finaxar?

Using the sign up link sent to your email or found at the end of the “Get Started” form on our website, you can register with Finaxar. For step-by-step instructions on setting up your Finaxar account, click here.

Is my company eligible for Finaxar's Receivable Financing?

To be eligible for Receivables Financing on Finaxar’s platform:

1. You must be a corporation (Pte. Ltd.; Ltd.), limited liability partnership (LLP), business trust or real estate investment trust (REITs).

2. Your company must have been generating revenue for more than 6 months.

3. Your customer repays within 30-90 days from invoice issuance date.

Is my company eligible for Finaxar's Merchant Credit Line?

To be eligible for Merchant Credit Line on Finaxar’s platform:

1. You must be a corporation (Pte. Ltd.; Ltd.), limited liability partnership (LLP), business trust or real estate investment trust (REITs).

2. Your company must have been generating revenue for more than 12 months.

3. Your customer repays within 30-90 days from invoice issuance date

4. Lazada Only: seller rating>30%, monthly confirmed orders>S$3000, bank withdrawals don’t exceed deposits by more than 20%, dilution rate shouldn’t exceed 10% of last 12 months’ revenue.

After I have accepted Finaxar's Offer Letter, how long will it take to activate my account?

Activation of your account will be completed after you have submitted the onboarding documents required for compliance. For a complete list of documents, click here.

What type of securities or collaterals do I need to provide to get financing?

Generally, we only require a Personal Guarantee (“PG”) or Joint/Several Personal Guarantees (“JSPG”) of the director(s) for the facility. However in certain cases, we may also require additional collateral eg. fixed deposits or a floating charge on the company’s assets to improve the credit structure of the facility.

How do I improve my chances of being eligible?

At Finaxar, we try to make the application process as easy for you as possible. But in order to improve your chances, it’s important that you scour the information we require and submit all necessary documents. You should also be on hand to quickly provide clarification on any queries raised by our credit team. 

How is my credit limit evaluated?

We look at various parameters to assess your credit limit, including monthly transactions with customers, typical credit terms extended, customer repayment trend etc. A more detailed summary of what we need will be provided to you during the on-boarding process.

Can I restructure my payment terms for the credit line?

We can review your payment structure and make a decision on a case-by-case basis.

What happens if I want to make a larger payment or make it earlier?

No penalty interests will be charged after a certain numbers of instalments have already been promptly repaid (the exact number is decided on case-by-case basis)

Can my credit limit or interest rates change?

Yes, we re-evaluate your credit limit and/or interest rates periodically for the best possible client experience. 

Do you work with businesses with a poor credit history?

We can consider businesses with a poor credit history for one of our services, but do keep in mind that you may be offered a smaller credit line. However, we re-evaluate your credit line periodically and might reconsider after a certain period of working with your business. 

On average, how long is your loan term?

Our loan terms can range from 4 to 8 weeks, determined on a case-by-case basis.

Pricing and Terms

If I bill my customers only once a month, will I get advances only once a month?

We operate on the basis of a credit line that you can draw down from. 

As you can see from the image, as long as you continue to upload new and valid invoices to our platform, and the total amount you want to draw down does not exceed the remaining credit limit, you can draw down whenever you need. 

What percentage of the invoice value will you advance?

Advances range between 70-90% of the face value of eligible invoices. The exact amounts will be determined at the time your account is opened. Advances will for the most part depend on risk factors such as credit/debit notes between your company and the debtor/customer, your industry, terms of sales and delivery, client relations and other factors.

Currently, I have a factoring facility with my bank. Can I still get financing with Finaxar?

Yes, provided that the same customer’s invoices are not factored with both financiers simultaneously.

My company usually experiences a sale surge during peak seasons. Am I eligible for financing from Finaxar?

Of course! We can review your account to temporarily increase your debtors/customers’ credit limit to support your billing during these seasonal periods.

Will Finaxar accept my overseas customers for financing?

Yes, we can accept invoices billed to overseas customers.  

Can my customers pay through the Finaxar application?

Currently payments to Finaxar can be done only via bank transfers and cheques. However, we will be enhancing our features in due course to cater to your needs. Please submit your request to support@finaxar.com. Your feedback is important to us.

Using Finaxar’s Software

Where can I find my invoices on Finaxar's app?

All of your invoices from your accounting system can be found on ‘Receivables’ page under the ‘Accounting’ tab on the side bar on the left. For further details on viewing invoices, click here.

How do I access my credit facility on Finaxar's app?

To view your credit facility, click on the credit facility found under the ‘Financing’ tab on the side-bar on the left. For step-by-step instructions on accessing and utilising your credit facilit, click here.

Can I add multiple organisations under one Finaxar account?

Yes, you can have more than one organisation under your Finaxar account. However, do note that a single organisation under your accounting software can only be connected to a single organisation in your Finaxar account. Multiple organisations under your accounting software cannot be connected to a single one in Finaxar and vice versa. For step-by-step instructions on connecting multiple organisations to your account, click here.

I already have an existing accounting package. How can Finaxar's services boost my business? And how much technical support do I need?

Finaxar may still be able to integrate to your accounting system, so that the financing process is as fast and smooth as possible. Please contact support@finaxar.com, and we will get back to you within 24 hours.

Can I add my colleagues to Finaxar's platform?

Yes, multiple members can be created under one organisation. However, only Admin members can invite people to join their organization. You can do this under ‘Invitations’ under ‘My Organisation’ page, which can be found on top right corner of you dashboard.  

Enter your colleague’s email address, select their assigned role under the ‘Select Role’ dropdown list, and click ‘Invite’. The invitation link will be sent to the email address you entered, and your colleague will use it to sign up for their Finaxar account.

Invitation links are valid for 7 days. After 7 days, the link will expire and you will need to send another invitation. You can also revoke your invitations if you have entered the wrong email address or have changed your mind.

If my debtor/customer is using their own portal for billing invoices, how will you handle our invoices?

We would be happy to have our technical team help you integrate with your customer.

Please email us at support@finaxar.com, call +65 6909 0711 or WhatsApp us at +65 9021 4791.

Do I have to submit physical invoices to Finaxar? Or can we send invoices in digital form?

Finaxar is an all-digital platform. Invoice submission to your debtors/customers is done through our platform. This facilitates better communication with your debtors/customers because they can also digitally view the details of your invoices to them instead of waiting for the physical invoices to reach them by snail mail.  

What's the difference between Admins and Users in Finaxar's app?

The default roles in the organisation are Admins and Users. Each organization needs at least one Admin although there can be multiple Admins and Users. The creator of the organisation automatically becomes an Admin, who can then invite other members to join the organisation. 

An Admin can perform tasks at the organization level such as managing integrations, inviting, assigning roles to members, request for funds and other functions. A User has read-only permissions at the organization level. A User cannot request for funds.

I'm having technical issues with my Finaxar account and/or software. What should I do?

If you’re in need of technical assistance, feel free to shoot us an email at support@finaxar.com or contact us through the Intercom icon at the bottom right-hand corner of your screen.

Making Payments

My customer pays us via Telegraphic Transfer (T/T). How can I request my customers to update their bank transfer details to Finaxar's account?

Once your Finaxar account is activated, we will notify your customers of the arrangement between your company and Finaxar through a standardized Notification Letter sent via email. In the letter, we will provide our bank details for them to update their internal payee details relating to your company and advise them to forward all payments on your invoices to Finaxar.

Can I request my customer to repay me directly, after which I will forward what I owe back to Finaxar?

Unfortunately, this is not possible. Under the Receivables Purchase Agreement that you signed with Finaxar, these receivables would have been assigned to Finaxar. Therefore, your customers must pay us directly. If it becomes known to us that you have instructed your customer to repay you directly, this is a contractual breach which may lead to immediate termination of our arrangement.

How often will my customers receive payment reminder letters from Finaxar?

Your customers/debtors will receive a payment reminder email on the payment due date, and every 2 weeks after the due date of your invoices.

What if my customer does not pay my invoice?

It depends on how your account is set up with Finaxar. An account may be set up either as a Recourse or Non-Recourse account. For a recourse account, you will either buy back unpaid invoices, swap them for new invoices, or deduct the overdue amount from your available funds. With a non-recourse account, the loss will be absorbed by Finaxar, if the invoice is undisputed by the customer.

If I give credit terms of 30 days to my customer, but they only pay 60 days after my credit term, will my customer be penalised by Finaxar?

Finaxar will not penalise your customers. Do note however that debts are monitored based on the financing period after an invoice issuance date. Assuming we approved your debtors/customers for a 90 day financing period, if we do not receive your debtors/customers’ payment within 90 days, our system will automatically classify these invoice(s) as ineligible. This will impact the amount of available funds you can draw down.

Can my customers pay through the Finaxar application?

Currently payments to Finaxar can be done only via bank transfers and cheques. However, we will be enhancing our features in due course to cater to your needs. Please submit your request to support@finaxar.com. Your feedback is important to us.

Xero Integration

How do I attach documents to my invoices in Xero?

For a step-by-step guide, click here.

How do I connect to Xero in the Finaxar application?

Connecting to Xero takes just a few clicks. Once you have created an organisation in Finaxar, you will be automatically directed to connect to your accounting platform. For step-by-step instructions on connecting to your accounting software, click here.

How is my data mapped from Xero to Finaxar?

The integration will allow you to access much of the data in your Xero in the Finaxar app, although you may find some of them under a different location. To see exactly how your data is mapped from Xero to the Finaxar platform, click here

How often do I need to sync data from Xero to Finaxar?

Finaxar automatically syncs your Xero data every 4 hours. You can also manually sync the data any time by clicking the sync icon which is found at the top of dashboard.

Can I connect all the organisations in my Xero account to Finaxar's app?

You can add multiple organisations on your Finaxar Dashboard. However, you cannot connect multiple organisations in Xero to a single organisation in Finaxar. You can only connect one organization in Finaxar to one organization in Xero.

What will happen to my Xero account after integrating with Finaxar?

Finaxar will import required data from your Xero account. We do not modify any of your data in Xero, hence your existing data will be unaffected. 

The security of your business and personal information is of the utmost importance to us. We adhere to the highest industry standards of security protocols, including the use of appropriate administrative, physical and technical safeguards, to protect the information submitted to us.

We will never use your information for any purpose other than for evaluating your company for our services.

Miscellaneous FAQs

How can I join the Finaxar team?

Interested in becoming a part of our awesome team? Check out the current openings on our career page to apply for a position. If you can’t find a role that you are looking for, feel free to drop us an email with your resume at join@finaxar.com.

How do I become a Finaxar Partner?

We are proud to be providing financing solutions to all SMEs. For more information on working with us, please get in touch through our Partners Page and someone from our team will be in contact with you shortly.

Is Finaxar MAS-regulated?

Finaxar is a direct lender. We do not take money from depositors and only lend to registered companies, not sole proprietors and partnerships. Hence, we are classed as an “excluded moneylender” for the purposes of the Moneylenders Act (Cap. 188).

Are the factored funds held in a separate account as opposed to Finaxar’s operational business Account?

Yes, they are separate. Our operations are carried out from Finaxar Capital I Pte Ltd (FXCI) with its own bank accounts. FXCI is under the oversight of registered  third-party fund management companies.

Ask A Question