Are you an owner of a small and medium-sized enterprise here in the region? Then you might have heard about the different SME loan types in Singapore that you can borrow for your business. It may come handy if you need it, but would you know when you should apply for one?
There are many reasons why you should enter a credit agreement with some of the most prominent lending institutions today. You may be hearing recommendations from your friends who are also enterprise owners saying that it would benefit you and your company. Consider their suggestions as it may help you move forward with your SME plans using your loan.
On the other hand, you can also read online articles on how local entrepreneurs grew their organization using these borrowed credits. They may have some tips that you can use on how you will find the right lending company for you. Hence, rely on their testimonials that recommend a specific SME loan agreement they used to grow their business.
Apart from these endorsements, you must know the different signs that tell you to consider borrowing some resources from reputable lending companies. Here are some of them that you might want to have a look at before you process your borrowed credits:
Business Expansion
It is the most common reason why SMEs in Singapore contact loan agencies in the region. Whether you are branching out or relocating to a larger space, you may seek their assistance if you’re short within your working budget. Furthermore, call them immediately if you have no money to use for your expansion.
There are many things you must consider when you decide to grow your business. You may either need funds to renovate your office or add more facilities within your compound. It may require you more if you’ll be building everything from scratch. Thus, it is best to get an SME working capital loan that you can settle at different intervals and terms.
Pro-borrowing tip: It is essential that you only borrow your needed amount. How will you determine it? List down your possible expenses on your business expansion plans. These include your building materials, labour fees, and other construction needs. Find an SME loan partner that can fund your needs.
Understaffing
Another sign that you should get a loan for your growing SME business is when you’re getting incomplete tasks due to your staffing issues. Check on your employee records as you might need some extra hands to reach your daily quotas. Hear your existing employees’ complaints as they may have been suffering from their workload already.
Use your borrowed credits to pay for your new hires who will help you do more in your business. Ensure that you hire the right persons to make the most of your capital loan. Employ more if you still have spare funds and if you need more people who will provide services to your customers.
Pro-borrowing tip: Consult your HR personnel and check if how many people you should add to your team for it to be productive. You can also ask your partners if they agree to increase the number of your employees because you are either short-handed or expanding. Consider their inputs to determine the total amount you’ll be needing from your SME loan agency.
Stock Problems
Aside from your employee records, look at documents detailing your product inventory and availability. You may need to replenish them soon as you might lose your customers due to your supply problems. Hence, if you don’t have any budget to restock, then you should apply for a working capital loan now.
You must work on your inventory issues instantly to sustain your loyal clients. You should be able to provide them with their needed products right there and then. Never disappoint them as it will lead to severe financial losses when they opt to end their transactions with your business.
Pro-borrowing tip: Double check your inventory reports before entering an SME loan agreement. Ensure that you are low in stocks to avoid overbuying and oversupplying. Hence, never wait for your items to deplete before you decide to replenish them. Use your borrowed money to restock strategically.
Equipment Upgrades
Do not forget about your business equipment and tools as you may need to upgrade them also to guarantee your business growth. You may opt to do it on your own, but it may cost you more if you have heavy machinery and state-of-the-art technologies that need some updating. Contact an SME lending company in Singapore that can assist you on your modernization plans.
But before you proceed with any loan agreement, you must ensure that you only get essential items for your business. You may choose to buy expensive equipment sold in the market to guarantee their quality. Nonetheless, you may opt to purchase affordable ones as long as they are also efficient and are in their optimal conditions.
Pro-borrowing tip: You can do your research to find the right equipment for your business. Focus on your needs and not on the wants of people around you. Make the most of your capital loan if you still have some to spare that you can use to buy extra tools for your employees’ convenience.
Financial Burden
Lastly, save your collapsing business by entering an SME loan agreement to keep it afloat until you get to bounce back. It may only be your course of action, but it is still the best option to preserve your employees, resources, equipment, and customers. Consider the time and efforts you spent to put up your business.
Pro-borrowing tip: Choose a reputable organization like TT Media Pte Ltd that will provide you with several capital loan options from their lending partners in the region. These include prominent credit companies that are known for their topnotch assistance for SMEs in Singapore today! Check their website now to process your credit agreements with them.
