How SMEs Can Read a Business Financing Offer Before Signing
Learn how SMEs can analyse a business financing offer, including repayment terms, fees, guarantees, security, default provisions and other obligations before signing.
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How SMEs Can Build Credible Financial Projections Before Applying for Business Financing
Learn how SMEs can build credible financial projections to estimate funding needs, understand cash flow and assess repayment capacity before taking business financing.
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How Foreign Exchange Movements Can Affect Singapore SMEs
A Singapore SME does not need to operate an overseas office to be affected by foreign exchange movements. A local business may buy inventory from a supplier in the United States, pay for software in US dollars, purchase machinery from Europe or receive payments from customers overseas. Whenever money needs to be paid or received…
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How SMEs Can Stress-Test Their Cash Flow Before Taking Financing
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…
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How Construction SMEs Can Plan Cash Flow Around Progress Claims and Retention
Construction businesses can be profitable on paper and still experience serious cash flow pressure. A contractor may need to pay workers, subcontractors, suppliers and equipment costs long before receiving the full amount due from a project. Unlike a retail business where customers may pay immediately, construction companies often receive money progressively as work is completed,…
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How SMEs Can Fund Digitalisation and AI Adoption Without Draining Working Capital
Digitalisation and artificial intelligence are becoming increasingly relevant to Singapore SMEs. Businesses are using technology to automate repetitive work, improve customer service, manage inventory, analyse data, support marketing and reduce administrative workload. The potential benefits can be significant. However, adopting new technology also costs money. An SME may need to pay for software subscriptions, implementation,…
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How Singapore SMEs Can Plan Cash Flow for GST Payments
For a GST-registered business, collecting money from customers does not necessarily mean that all of the money is available to spend. Part of the amount collected may eventually need to be paid to the Inland Revenue Authority of Singapore (IRAS) as Goods and Services Tax (GST). This can create cash flow pressure if the business…
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Government Grants vs Business Financing: Which Should Singapore SMEs Use?
Singapore SMEs looking to grow, digitalise or expand often come across two possible sources of financial support: government grants and business financing. At first glance, the choice may seem obvious. If a grant can help cover part of a project cost, why would a business consider financing that has to be repaid? In practice, grants…
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What Is Debt Service Coverage Ratio and Why Does It Matter Before Borrowing?
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…
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How to Calculate the True Cost of Business Financing Before You Borrow
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…