7 Ultimate Reasons Why Successful SMEs Get a Business Loan

Small and medium enterprises (SMEs) continue to be one of the biggest players in Singapore’s economy. Based on a survey conducted by SME Magazine, SMEs continue to grow amid economic difficulties. The data also showed that the average revenue increases by about 109% than the previous year.

As SMEs increases in numbers, we have observed that among the major challenges they face is the lack of capital. As they continue to gain competitive advantage, they realize that funding is needed. Existing capital is not enough to support growth and achieve its goals.

Among the key characteristic of successful entrepreneurs is that they never lose sight of their goals. And they believe that it can be achieved by dedicated and by getting additional funding. Thus, business loans become a powerful tool for SMEs. And there are various goals why businesses wanted to take a business loan.

Rapid Expansion and Growth Rate

Successful businesses never stop exploring and growing within their industry. If they gain more revenue, it is still not enough. Relying on their excess cash can further delay achieving their goals. To grab these opportunities, SMEs takeout a loan to support their expansion and new investment goals. In the end, business loans help them in realizing a rapid growth in the industry.

However, it is vital that when taking a business loan, you must have a clear forecast for your revenue. You have to make sure that your expansion or new investments are profitable. In this way, you can be able to forecast your repayments.

Increase Inventory

Time is money. Although we commonly hear this, this important especially with SMEs offering seasonal items. Like in the retail industries, you can be successful if you are always ready and prepared for each profitable season. Existing cash-flows are insufficient, like preparing for the holiday season. Successful entrepreneurs do not limit the inventory that they will sell during holidays. They usually double or increase it than regular periods. And they end up seeking extra capital to buy a large amount of inventory. Taking a business loan is simply the answer.

Capitalize on new technology and equipment

Every business wanted to attain efficiency and they seek for new technology and equipment. As soon as they found out valuable technology or equipment, they end up purchasing it. It can help them in speeding up their production or increasing their productivity rate.

Eliminating or Avoiding Cash-flow Issues

Among the biggest challenge that you can meet along with the operation are the cash flow issues. Like for example, you don’t have enough funds to pay for the suppliers or lack of funds for rental fees. If you haven’t prepared for this, it can lead to business failure.

Successful business owners have found a way of eliminating or avoiding a cash flow crisis. Securing a short-term loan is the answer to achieving a positive cash-flow. It can help in paying for regular bills, rental fees, or for employees’ salaries.

Building Credit Profile

Knowledgeable with money management is one of the key skills of a successful entrepreneur. Having a big plan in the future is also a key trait. These SMEs never stop in finding ways to achieve a rapid growth rate. To achieve this goal, securing a business loan is an answer. They started with the smallest loan offer and repay it on time. As it continues to be a responsible borrower it leads to having a high credit score.

With a high credit score, licensed moneylenders offer the larger loan package. Another perk of having a good credit profile is that they can have a low-interest rate. Just take note that in taking an initial loan it is essential that you have aligned it with your capacity to pay.

Cheaper than Equity Financing

With equity financing, you can have more cash but there are lots of downsides. In the long run, it is a type of financing that is much expensive. It requires giving up a percentage of your business. Whether it’s 5% or 10% when seeing the whole picture, you are losing that money within the business life span. Unlike with loans, it has limited repayment terms. It will take either 2 to 3 years or more but not within the whole business lifetime. In addition, it is a wiser decision to take a loan, since you can choose from either a fixed or flexible repayment options.

Smart entrepreneurs take debt financing also since they knew that they still have full control over their business. This is also a wise option since it has tax benefits, it’s tax-deductible. Forecasting is also much easier because you either have a fixed or flexible repayment with standard interest rates and fees.

Capitalize on Strong Business Opportunities

An awesome entrepreneur always opens its doors for opportunities. There will come a time for huge discounts on bulk orders, low rental fees, or discounted prices on the equipment. Taking a short-term loan is an ideal solution to capture these opportunities. By giving discounts, it will allow a business to increase its revenue. Buying some capital-intensive machinery can also increase productivity. This is mostly seen in manufacturing industries.

In taking capital to fund your growth opportunities it is ideal to conduct a revenue forecast. By doing this return on investment can be identified. It is vital to see how much it can contribute to your revenue.

Key Takeaways

An SME will attain success as long as it is consistent to achieve its goals. It never stopped finding ways to increase its growth rate. Getting a business loan is an ideal option when you wanted to reach success for your business.

If you are currently an SME owner with less than 1 year in the industry it might be hard to take a loan especially with traditional lenders. Interests are also high. But with a licensed moneylender, you have the option to choose among the loan packages. You can also choose either a fixed or flexible term, paying what you only owed.

When you want to make your business grow further, don’t be afraid to take a business loan. Capitall Singapore is here to help you.

Share:

Read Our Other Articles.

Business Loan Ultimate Guide To Car Loan Balloon Payment Schemes

The convenience of having your own car would drive you to hunt for the best possible car loan. In looking to finance your car purchase, you might have been offered the balloon payment scheme as an option.  But is the scheme right for you? Would you be better off with a conventional car loan?  Before […]

Business Loan 5 Ways To Get A Higher Credit Limit For Your Business Line Of Credit

Have a business line of credit and looking to expand and build your business? Then you might want to consider increasing your credit limit. Getting a higher limit is beneficial as you can access extra funds during emergencies or use it to seize opportunities. That said, requesting an increase in your business line of credit […]

Business Loan All You Need To Know About Credit Limit And The Benefits Of Increasing It

Most of us could rattle on unflinchingly on the credit cards we have but would probably get tongue-tied if asked about each card’s credit limit. Perhaps this is a slippery slope for some as not knowing the credit limit could potentially sink one into debts. Are you aware of your credit limit? And do you […]

Personal Finance What Is The Cost Of Owning A Car In Singapore?

A car is possibly the biggest purchase you might make aside from buying a house. We always hear or know that owning a car, especially in Singapore, is expensive. But do you know the actual cost of owning a car in Singapore? First, what makes a car so expensive to own in Singapore? Singapore has […]

Company Corporate Bankruptcy In Singapore: What Happens To The Company?

Bankruptcy is thought to be a very negative and taboo word in Singapore. After all, the word is associated with failure and financial ruin, with society often seeing bankrupt individuals or companies in a different light. To make things worse, those facing bankruptcy in Singapore can face a whole new set of challenges from their […]

Entrepreneurship Invoice Factoring In Singapore: What Every Business Needs To Know

Did you know that a lack of funding and working capital are among the common reasons why businesses fail? And how could invoice factoring in Singapore come into play? Running a business can be challenging, especially in a competitive environment such as Singapore. Businesses need to stay in-the-know and be quick to adapt. More importantly, […]

Business Loan Business Loan In Singapore: Why Your Car Loan Application Was Rejected And How An In-house Loan Can Help

Securing a business loan to finance your company’s fleet of vehicles is not always a walk in the park. Transport and delivery industries are not the only ones that require a fleet of vehicles. Vehicles are also essential in driving the operations of other types of businesses such as those in food catering, air condition […]

Entrepreneurship Small Business Opportunities In Singapore: 6 Business Ideas For The Current Economy

From cab drivers to fresh graduates, the sobering reality is that countless Individuals have been hit hard by the COVID-19 pandemic. Small business opportunities in Singapore take a plunge as companies are not spared the challenge to stay afloat in this unprecedented economic slowdown. A joint survey conducted on more than 3,000 small and medium […]

Business Loan Small Business Opportunities In Singapore: 9 Helpful Tips For Starting One

Always dreamed of being the boss of your own business? Before exploring the different small business opportunities in Singapore and taking on the risks of starting one, overcome foreseeable challenges by planning and preparing ahead.  Here are 9 tips that you should consider before getting your small business off the ground in Singapore.  1. Don’t […]

Business Loan 5 Tips On Using A Merchant Cash Advance And How To Relieve Debt From It

It can be tough owning a business, especially in Singapore, the world’s most competitive economy. There might come a time when a short-term expense puts you in need of additional financing. Perhaps you’re looking for a merchant cash advance because you need cash urgently. Or maybe you have a credit history that didn’t fit the […]

Business Loan A Guide To Merchant Cash Advance And How It Works

With the economy in an unpredictable flux, it can be tricky navigating through these uncertain times as a business owner. Certain business decisions incur expenses that can put you in need of immediate cash. While a business loan might seem like a solution, the terms and conditions may not always meet your business needs. In […]

Business Loan Is Merchant Cash Advance Suitable For Your Business?

As you try to secure extra funding for your business, you might have stumbled upon the term merchant cash advance. Clueless as to what it is? Here’s a lowdown of what it can offer. A merchant cash advance is a form of short-term business funding that could serve as a lifeline for businesses that had […]

Business Loan 6 Strategies To Finance Your F&B Business During These Trying Times And How A Business Loan Can Help

Running a business is not easy. It’s even harder to run a food and beverage (F&B) business due to its fast-changing nature. Healthy cash flow is needed for smooth business operation, and without enough funds, problems will only accumulate.  Now with COVID-19, the world’s economy has taken a tremendous hit, and many F&B business owners […]

Business Loan 4 Best Business Loan Options For Financing Your F&B Business

2020 hasn’t been kind to many businesses. With the outbreak of COVID-19, food and beverage (F&B) businesses in Singapore have taken a significant hit, facing over 50% – 80% drop in revenue with more than 500 eateries closing down. Well-known restaurants such as The Chophouse and The Starker Group have made the painful decision to […]

Business Loan Business Line of Credit: How To Increase Your Chances Of Getting One

Every business will face trying times. The struggle of staying afloat amid reduced revenues or rising costs is an experience all businesses will go through at some point. The repercussions of the current COVID-19 pandemic is a testament to this. You need a healthy reserve of funds set aside for rainy days to see your […]

Business Loan 6 Things Business Owners Should Consider When Taking A Business Line Of Credit

Is your business expanding? Or is it in its initial stages and you are looking forward to launching your new product or service? Whether your business is mature or just starting out, you might have considered taking a business line of credit. In Singapore where there is a high saturation of SMEs in almost every […]

Entrepreneurship How To Start A Business In Singapore: A Comprehensive Guide For Aspiring Business Owners

Whether you have been toying with the idea of running your own company, or thinking of leaving your job to be an entrepreneur, it’s not difficult to understand why many would want to be their own boss and learn how to start a business in Singapore.  In recent years, Singapore has been consistently rated as […]

Business Loan Business Loan In Singapore: How Can Invoice Financing Help Your Business?

Being cash-strapped is not a great feeling. Running a business and managing operational expenses and monthly overheads can get stressful. Thus, having a good cash flow is essential to ensure that your business stays afloat and prospers. But how do you ensure a good cash flow when your business relies heavily on invoice payments? Outstanding […]

Business Loan Invoice Financing in Singapore: A Business Loan For SMEs

It is never easy having to rely on multiple clients for income. As reliable as they may be, no client is immune to the need for an occasional late payment request, especially in times of economic crisis like global pandemics or recessions. Neither is a 60-day invoice that you issued to a client going to […]

Business Loan Business Loan In Singapore: How Can A Business Line Of Credit Help Your SME?

As a business owner, you probably have had your fair share of experiences managing tricky financial situations. Finding yourself in a position where your business finances are not enough to cover operational expenses can be daunting. In times like this, turning to a business loan in Singapore can be useful. A business line of credit, […]

Business Loan Business Loan In Singapore: When Should Your Business Consider Payroll Loans?

Managing a business in Singapore is not easy. Operating costs such as payroll make up for a considerable percentage of your monthly overheads. As a business owner, you may have run into a cash flow crunch and need a quick influx of cash to pay your employees or hire extra help. This is where many […]

Business Loan How A Business Loan Can Prepare Your Business For A Post-Pandemic World

2020 has been one of the most challenging years for businesses worldwide. With COVID-19, there are many unexpected costs and preparations to be made. Although many companies in Singapore have reopened, it may take some time before business picks up. If you are a business owner, what should you do to prepare you and your […]

Business Loan Business Loan In Singapore: Guide To Taking An in-house auto financing Loan

Is your business in need of vehicles for transportation? Or are you an individual looking to own a car in Singapore? Whether you are looking for a fleet of vehicles for your catering, delivery, or cleaning business, or just an individual looking for a car, business loans in Singapore can be a great help to […]

Business Loan 4 Essential Questions To Ask Before Engaging An SME Loan Broker In Singapore

This period of unexpected circumstances in Singapore is forcing SMEs to face monumental challenges. Businesses from almost every sector have been impacted by the recession and the Covid-19 situation. If your SME business has been hit, you are likely looking for solutions right now to tide through this season. So where does a Singapore SME […]

Business Loan Should You Engage An SME Loan Broker For Your Business In Singapore?

At some point in your business, be it at the start-up or expansion stage, you might find the need for extra funds to push it forward. You might also be wondering if it’s worth engaging the services of an SME loan broker for your business in Singapore.  Would hiring a loan broker add value to […]

Business Loan How Credit Rating Affects Your Business Loan In Singapore

If your business is in need of funds and you’re seriously considering taking a loan, you will need to know the importance of credit ratings. No matter what sort of business you run — a large global business or a local SME, credit ratings play a significant role in helping you secure loans. In fact, […]

Business Loan Getting A Business Loan Doesn’t Have To Be Hard. Read These 4 Tips.

Your business needs that extra funding to allow it to move forward. If you are unsure of which lenders to go to or how to approach them, the process of getting a business loan can be daunting. Borrowers often make the mistake of not doing thorough research on which lenders to approach or the types […]

Business Loan Business Loan In Singapore: All About Expansion Financing

If you own a small-medium enterprise (SME) business that has charted success in consecutive years, you might be thinking of scaling up your business further. The question is whether you have enough resources to see through your plan. This is where taking up a business loan in Singapore in the form of expansion financing could […]

Business Loan Business loan In Singapore: What Is A Bridging Loan And How Can It Help My Business?

What Is A Bridging Loan? A bridging loan is designed to help companies and individuals tide over a short period of financial challenge.  For companies, this is a type of business loan that can be used to increase working capital while waiting for longer-term financing to come in.  To individuals, a bridging loan usually applies […]

Business Loan Business Loan In Singapore: What Is Auto Financing – Car Flooring Loan?

Whether you’re a business owner in the automobile dealer industry or looking to start up your own auto dealership, you’d probably know how expensive inventory for automobiles is. Businesses that have to deal with such huge purchases usually take up business loans in Singapore to manage their inventory and showroom. For a business owner in […]

Business Loan How To Start A Business In Singapore: 6 Simple Ways To Get Funded

Are you a business owner? Do you own an SME in Singapore? Or perhaps you are thinking of finally launching your startup? There are many challenges when it comes to running a business. Businesses that have been around for an extended period of time could be thinking about expansion and growth. On the other hand, […]

Business Loan An SME Loan Broker In Singapore Vs A Direct Lender: Differences You Should Know

You might have an impending need for extra working capital in your business. As you research possible sources for a loan, you might have come across the services of an SME loan broker in Singapore. But what exactly is an SME loan broker? How can such a broker fit into your plan of getting a […]

Business Loan 5 Reasons Why Your SME Needs a Working Capital Loan

Utilities, staff salaries, inventory, equipment rental — these are just some aspects that make up day-to-day operational costs. To keep your business running, you first need to have enough capital to get it started. And this is perhaps the greatest challenge of most businesses. Working capital is, fundamentally, a term for having money on hand. […]

Business Loan How Does Getting An Sme Working Capital Loan Help My Business?

Taking a working capital loan in Singapore is common among SMEs. In short, a working capital loan is a specialised type of loan designed to help businesses cover daily operational costs.  Unlike other business loans, working capital loans generally do not need you to state the purpose of borrowing, as these loans are short-term and […]

Business Loan Everything You Need To Know About Getting A Working Capital Loan For Your SME In Singapore

It can be challenging running your own business. There are many hurdles SMEs often face — from administrative matters, ideas-generation, to finding enough money to fund your business. Many approach banks and private financiers for SME working capital loans in Singapore when facing such financial difficulties, especially during the initial phases. Working capital loans can […]

Business Loan How Much Should You Get For Your SME Working Capital Loan

If you’ve been following this space, you would know that we’ve been discussing what working capital loans are and how they can benefit SME businesses. Working capital loans help SMEs finance day to day operations and provide short term solutions to pressing challenges such as seasonal fluctuations and downturns. Perhaps your business needs to take […]

Business Loan 9 Things To Ask Before Getting A Business Loan In Singapore

Gone are the days when banks are the default go-to place in getting a business loan in Singapore.  Small and medium-sized enterprises (SMEs) these days have various options ranging from banks to private financial institutions that offer different types of business loans. As your business grows, it would most likely need more financing to expand […]

Business Loan 5 Common Misconceptions On Getting A Business Loan In Singapore

Thinking of striking it out on your own? Do you have big plans and an ambitious vision but don’t have enough capital yet? Getting a business loan in Singapore might just be the first step you need to take! Many business owners hesitate to take a business loan due to a range of reasons. It’s […]

Business Loan Why Your Business Loan In Singapore Might Have Been Rejected

There’s nothing more frustrating than to find out that your business loan application has been rejected.  Business owners look to banks and financial institutions to get business loans for a myriad of reasons. Whether it is to expand, innovate, or to cover day to day operations, having access to funds at the right time is […]

Business Loan Business Loan In Singapore: 6 Tips To Increase Your Approval Chances

Does your business need a loan? Have you already tried applying for loans in the past but got rejected?  In Singapore, it’s almost impossible to go about building up your business without getting a business loan. Having your business loan rejected can be extremely troublesome.  If you have been following this space, we have previously […]

Business Loan 6 Reasons Why SMEs Take Business Loans In Singapore

In Singapore, 65% of the economy is made up of SMEs. From e-commerce startups to financial products, there are all sorts of SMEs in the Singapore market. With a high saturation of competitors in different markets, growing your business is extremely challenging in Singapore.  On top of stiff competition, SMEs also face the challenges of […]

Business Loan Avoid These 6 Mistakes When Applying For A Business Loan In Singapore

Starting a company can be a challenging feat. Not only must you have a good business idea, but you must also get enough capital. That’s not even considering all the countless administrative matters to handle. The first part, getting a good idea, is often already established when the company is founded. However, most companies struggle […]

Business Loan Business Loan Options Every Business Owner Should Know

Thinking of starting a business? Perhaps it has always been a dream to strike it out on your own? If that sounds like you, you are going to need a business loan.  Having enough capital will make a world of difference for your business which is why knowing where to get the best business loan […]

Business Loan SME Working Capital Loan: 6 Types Of Short Term Financing Options To Boost Your Working Capital

Running a business costs money. If you are an experienced business owner, you would know that it is not easy to run a startup in Singapore. From employees’ pay to inventory, or even just turning the lights on, the cost of day to day operations adds up. That is why loans are unavoidable when you […]

Business Loan Working Capital Loan For SMEs: 5 Essential Questions To Ask When Taking One

Have you ever considered taking a business loan to meet the financial needs of your Small and Medium Enterprise (SME)? If yes, you probably have heard of working capital loans for SMEs. In short, working capital is the money companies use for daily operational expenses. Managing your working capital properly can be challenging for an […]

Business Loan Digital Presence and E-Seller loans in Singapore

As the world is moving at a fast pace, the society is converting into a cashless society. People are more likely to be digitally active and doing business. Online selling and buying have become a new business market. The new generation is drawn towards the trend and soon the world will convert into a society […]

Personal Finance How to Manage Your Finance?

Managing your finances is a very tedious task especially for the ones who don’t understand accounts and finance at all. Most of us, even the ones who have just stepped adulthood have a job. We may have our own startup, work in an MNC, or maybe a government employee. We are here to let you […]

Media CNA | The Entrepreneur 2019

This series celebrates the achievements of 10 businessmen and women who prove to have what it takes to break boundaries and emerge as winners of Singapore’s Entrepreneur of the Year Awards (EYA).

Media sgsme.sg | 10 Business Leaders Recognised as Entrepreneur of the Year

From training aspiring pilots to lending money, 10 local entrepreneurs received the Entrepreneur of the Year Award (EYA) 2019.

Media MoneyFM89.3 | The Breakfast Huddle

Find out how local firms are helping F&B SMEs scale their businesses.

Media The Business Times | CEO Conversation: Transforming into a Digital Financial Services Provider

Singapore-based Capital C Corporation has come a long way since the inception of its money lending arm in 2011.

Media e27 | The Case for Alternative Lending

In the last decade, we have witnessed rapid growth in the alternative lending space, with the creation of new business models opening up the range of alternative lending products available.

Media APAC CIO Outlook | How Fintech is Driving Innovative Lending

In Singapore, SMEs account for around two-thirds of the workforce and a large chunk of GDP growth.

Get Your Business Loan Now.

Apply now, and receive your business loan within 24 hours*.