How does invoice financing work for UAE businesses waiting on customer payments?

How invoice financing works

You issue an invoice to your customer as usual. The funder reviews the invoice and the customer, then advances part of its value. When the customer pays, the funder deducts the advance and its charges and releases the rest to you.

Facilities can be with recourse, where you remain responsible if the customer does not pay, or without recourse, where the funder takes that risk for a higher cost. Some are disclosed to your customers and some are confidential.

Is invoice financing right for your business?

• Your customers pay on 30 to 120-day terms and cash is tied up in receivables.
• Your customers are established companies or government-related entities.
• Your order book is growing faster than your cash.
• You lack property or other hard assets to offer as security.

What funders usually look at

• The credit quality and payment history of your customers
• An aged receivables report
• Contracts, purchase orders and delivery or acceptance documents
• Any disputes, credit notes or concentration on one customer

How SYG International helps

1. We review your financials, cash cycle and existing banking to confirm the right product and size.
2. We structure the request and prepare a credit package that funders can assess quickly.
3. We approach suitable banks, fintechs and private lenders in parallel, so you can compare offers.
4. We negotiate terms with you and manage documentation through to drawdown.

Frequently asked questions

SYG International advises on, structures and arranges funding. We do not lend. Final decisions, pricing and terms rest with each funding institution.