Bizhack: How to Use an SME Working Capital Loan

admin261

Your competitors are likely using the SME working capital loan to help them thrive in their businesses and especially so since the supplementary budget announcement on 26th March 2020 by Deputy Prime Minister, Mr. Heng Swee Keat. Thus, it makes sense for you to consider the same thing. Success needs more than just having a plan, even more than just hard work and dedication. Financial agility, accountability, and power are required in order to achieve such goals.

Complex business cash flow issues have a relatively simple solution: to get a business loan. An SME working capital loan is a distinct type of borrowing, as opposed to general small business loans, factoring, or credit cards. There are many benefits in tapping into these funding alternatives.

  1. Bridge Payment Delays

Some of your business partners might be a little slower if you back up on payments for a couple of weeks. This is especially true of industry peers: companies of your size and age. It would help if you had a way of bridging payment delays without incurring high costs. While nobody likes to borrow money, a lot of successful companies are doing math and realizing that a working capital loan is actually cheaper than paying the fees and interest rate on some revolving credit facilities.

  1. Pay Your People

No business owner likes to see the payroll number appear in the books. As your business grows, payroll costs can go up faster than anything.

Even if you have a great team that provides excellent value, you may not see an immediate return. If revenue lags, utilize working capital to bridge pay gaps. Retain the people who are bringing the money back to your company.

  1. Stock Up

If you are a retail business, you know that inventory is a liability. There are times when you need to overstock. This includes rolling out a new product, going into a busy season, or purchasing in bulk for a bigger discount.

Promotions and trades are also a good time to consider the expansion of your capital resources. Make sure your merchandise liability is not a threat to other aspects of your business.

  1. Whether the Storm

A lot of businesses depend on busy seasons to take them through the slow months such as:

  • Equipment or vehicle rental centers
  • F&B and Retail
  • Wholesale Traders
  • Residential contractors
  • Outdoor recreation facilities
  • Building contractors

Whether you are directly involved in or providing services to one of these industries, you feel the crunch during the low-income times of the year.

The SME Working Capital Loan is an economic equivalent of saving on a rainy day. This is why the limit has risen from S$300,000 to S$1,000,000 to help the SMEs to curb the CoVid-19 outbreak. Work on your accounting for the cost of the loan, if not, speaks with Finnex Consultants and you don’t have to worry about under-borrowing or over-borrowing that adds oil onto any spark of fire.

  1. Hire Quality Labor

One of the easiest ways to get ahead in any business is by empowering your team. This could mean hiring experts in your field to pad the roster for busy seasons.

There is also a universal truth about doing business when it comes to human resources: you get what you put in. You will need to be able to offer a competitive compensation package to get the best candidate for a position.

Use a working capital loan to improve employee benefits, provide better pay, improve the working environment, or send them for training to equip them with the necessary skills to boost the upturn when the CoVid-19 outbreak has slowed down.

  1. Operate Smoothly

Telling a lender that you want to operate more efficiently is probably too general a statement. Make this specific to your own business. Identify the vulnerable points in your business before you apply for a loan. These are usually bottlenecks, processes, or inefficient tools that cause chaos or require regular workarounds.

Use a loan to improve your business tools and educate your team on how to avoid costly problems.

  1. Marketing and Advertising

Advertising and marketing are two of the most popular reasons why small businesses apply for loans. The extra budget gives freedom to try out new types of tools and tactics, such as social media marketing, event sponsorship, community outreach, or publishing.

You can activate your strategic level by hiring analysts, outsourcing to a consultant, or only by obtaining a professional analysis tool to do it yourself. That way, you cover the two most important aspects of the marketing process. 

261 thoughts on “Bizhack: How to Use an SME Working Capital Loan”

  1. Avatar
    froleprotrem says:

    What’s Happening i am new to this, I stumbled upon this I have found It absolutely useful and it has aided me out loads. I hope to contribute & assist other users like its aided me. Great job.

  19. Avatar
    site url says:

    Have you ever considered publishing an e-book or guest authoring on other sites? I have a blog centered on the same ideas you discuss and would really like to have you share some stories/information. I know my visitors would enjoy your work. If you’re even remotely interested, feel free to send me an email.

  20. Avatar
    check says:

    We are a bunch of volunteers and opening a new scheme in our community. Your website provided us with valuable info to paintings on. You have performed a formidable task and our entire neighborhood will likely be thankful to you.

  35. Avatar
    Monkey Digital says:

    I cling on to listening to the news speak about receiving free online grant applications so I have been looking around for the most excellent site to get one. Could you tell me please, where could i find some?

  48. Avatar
    cabin crew skills says:

    Hola! I’ve been reading your weblog for a while now and finally got the bravery to go ahead and give you a shout out from Porter Texas! Just wanted to say keep up the great work!

  56. Avatar
    melhor consultor de seo says:

    You really make it seem so easy with your presentation but I find this topic to be really something which I think I would never understand. It seems too complicated and very broad for me. I’m looking forward for your next post, I’ll try to get the hang of it!

  70. Avatar
    energy iot says:

    I have read some excellent stuff here. Certainly value bookmarking for revisiting. I wonder how so much attempt you place to create this sort of wonderful informative site.

  76. Avatar
    daftar idn poker says:

    Hello! I’ve been reading your site for some time now and finally got the courage to go ahead and give you a shout out from Huffman Texas! Just wanted to tell you keep up the fantastic job!

  78. Avatar
    Moveis para Escritorio Cubatao SP says:

    Thanx for the effort, keep up the good work Great work, I am going to start a small Blog Engine course work using your site I hope you enjoy blogging with the popular BlogEngine.net.Thethoughts you express are really awesome. Hope you will right some more posts.

  82. Avatar
    Eye Doctor Woodbridge says:

    I really like your blog.. very nice colors & theme. Did you make this website yourself or did you hire someone to do it for you? Plz respond as I’m looking to create my own blog and would like to know where u got this from. cheers

  97. Avatar
    +solar says:

    Thanks, I’ve recently been looking for information approximately this subject for a long time and yours is the greatest I’ve discovered so far. However, what in regards to the bottom line? Are you certain about the supply?

  103. Avatar
    solar company in perak says:

    Excellent read, I just passed this onto a colleague who was doing some research on that. And he actually bought me lunch since I found it for him smile Thus let me rephrase that: Thanks for lunch! “Do you want my one-word secret of happiness–it’s growth–mental, financial, you name it.” by Harold S. Geneen.

  121. Avatar
    here says:

    Hello there, I discovered your web site via Google at the same time as searching for a comparable matter, your website got here up, it seems to be good. I have bookmarked it in my google bookmarks.

  144. Avatar
    tenis atacado says:

    I will immediately take hold of your rss feed as I can’t to find your email subscription link or newsletter service. Do you have any? Kindly let me recognise in order that I may subscribe. Thanks.

  166. Avatar
    ensave instagram says:

    I like this site very much, Its a really nice position to read and get info . “Being powerful is like being a lady. If you have to tell people you are, you aren’t.” by Margaret Hilda Thatcher.

  181. Avatar
    private detectives says:

    I actually wanted to make a small note to be able to thank you for these superb solutions you are placing at this website. My time-consuming internet investigation has at the end of the day been paid with useful details to share with my company. I would assume that many of us site visitors are undoubtedly blessed to live in a superb network with many awesome individuals with beneficial tips. I feel really grateful to have seen your web page and look forward to really more thrilling moments reading here. Thank you once more for everything.

  193. Avatar
    detectives en alicante says:

    I found your weblog website on google and examine a number of of your early posts. Proceed to keep up the superb operate. I simply further up your RSS feed to my MSN Information Reader. Seeking forward to studying extra from you afterward!…

  199. Avatar
    pg in jaipur says:

    Howdy, i read your blog occasionally and i own a similar one and i was just wondering if you get a lot of spam responses? If so how do you protect against it, any plugin or anything you can suggest? I get so much lately it’s driving me mad so any help is very much appreciated.

  206. Avatar
    Qiu Qiu 99 says:

    Magnificent goods from you, man. I’ve keep in mind your stuff prior to and you are just too excellent. I actually like what you have acquired right here, really like what you’re saying and the way in which by which you are saying it. You are making it enjoyable and you continue to care for to stay it sensible. I can’t wait to read much more from you. That is really a wonderful website.

  210. Avatar
    assistir animes online says:

    An interesting discussion is worth comment. I think that you should write more on this topic, it might not be a taboo subject but generally people are not enough to speak on such topics. To the next. Cheers

  214. Avatar
    best condo in sengkan says:

    What¦s Going down i am new to this, I stumbled upon this I’ve found It absolutely useful and it has helped me out loads. I’m hoping to give a contribution & help other customers like its aided me. Great job.

  215. Avatar
    traitement punaises de lit Paris says:

    I would like to thank you for the efforts you have put in writing this site. I am hoping the same high-grade website post from you in the upcoming also. In fact your creative writing abilities has encouraged me to get my own site now. Really the blogging is spreading its wings fast. Your write up is a good example of it.

  222. Avatar
    solar energy in malaysia says:

    Only wanna remark on few general things, The website layout is perfect, the subject matter is rattling wonderful. “Believe those who are seeking the truth. Doubt those who find it.” by Andre Gide.

  223. Avatar
    aiot says:

    Great wordpress blog here.. It’s hard to find quality writing like yours these days. I really appreciate people like you! take care

  224. Avatar
    kedai bateri nusa jaya says:

    I would like to thnkx for the efforts you have put in writing this blog. I am hoping the same high-grade blog post from you in the upcoming as well. In fact your creative writing abilities has inspired me to get my own blog now. Really the blogging is spreading its wings quickly. Your write up is a good example of it.

  225. Avatar
    kedai bateri kereta murah johor bahru says:

    Woah! I’m really digging the template/theme of this blog. It’s simple, yet effective. A lot of times it’s very hard to get that “perfect balance” between user friendliness and visual appearance. I must say that you’ve done a great job with this. In addition, the blog loads extremely fast for me on Chrome. Superb Blog!

  228. Avatar
    Citi group news says:

    Hello, you used to write wonderful, but the last several posts have been kinda boring… I miss your super writings. Past several posts are just a little bit out of track! come on!

  231. Avatar
    메리트카지노 사이트 says:

    Hiya, I’m really glad I have found this information. Today bloggers publish only about gossips and web and this is actually irritating. A good website with interesting content, that is what I need. Thanks for keeping this site, I will be visiting it. Do you do newsletters? Can not find it.

  240. Avatar
    Personal Branding Expert India says:

    certainly like your web-site but you need to check the spelling on quite a few of your posts. Many of them are rife with spelling issues and I find it very bothersome to tell the truth nevertheless I will surely come back again.

  244. Avatar
    Ulysses Levier says:

    Unquestionably believe that which you stated. Your favorite justification appeared to be on the net the easiest thing to be aware of. I say to you, I certainly get annoyed while people consider worries that they plainly do not know about. You managed to hit the nail upon the top and defined out the whole thing without having side effect , people could take a signal. Will probably be back to get more. Thanks

  251. Avatar
    atravessadordearmas says:

    I like the helpful info you provide in your articles. I’ll bookmark your weblog and check again here regularly. I am quite certain I’ll learn a lot of new stuff right here! Best of luck for the next!

  259. Avatar
    Advertising banners says:

    Youre so cool! I dont suppose Ive learn something like this before. So nice to seek out anyone with some original thoughts on this subject. realy thank you for starting this up. this website is one thing that is needed on the net, somebody with slightly originality. helpful job for bringing one thing new to the internet!

Leave a Reply