Taking business financing should not depend only on whether an SME can afford the repayments when everything goes according to plan. Sales may be weaker than expected. A major customer may pay late. Supplier costs may rise. Equipment may suddenly need repair. A project may take longer to complete. These events do not necessarily mean…
A business may be profitable and still struggle to repay financing comfortably. The reason is simple. Profit alone does not show how much cash is available after the company pays its normal operating expenses. This is where the Debt Service Coverage Ratio, commonly known as DSCR, can be useful. DSCR compares the income or cash…
The amount a business borrows is only one part of a financing decision. Two financing offers can provide the same S$100,000 but have very different costs, repayment schedules and effects on cash flow. This is why SME owners should look beyond the advertised interest rate when comparing business financing. The true cost of financing can…
Many SMEs experience cash flow pressure even when sales are healthy. The problem is often timing. A business may complete an order, issue an invoice and record the sale, but still have to wait 30, 60 or even 90 days before the customer pays. During that period, salaries, rent, suppliers and other expenses still need…
Business loan or personal loan? Learn the key differences for SME owners, including repayment responsibility, business cash flow, personal risk, and record keeping.
Find out how much your SME may be able to borrow in Singapore and what lenders usually consider, including revenue, cash flow, existing loans, repayment ability, and business purpose.
