How Finance Companies Help SMEs Obtain Funds

How Finance Companies Help SMEs Obtain Funds

During the tough times, small businesses often struggle to remain profitable amidst rising costs. A sustainable business needs to be profitable since without profits it cannot develop or transform. The possible methods that can be used to ensure increased profits are either cutting costs or increasing revenue.

Increased competition and world economic downturn have posed a major challenge for SMEs who are struggling to remain profitable. Many small and medium-sized enterprises are not given the attention they need for their sustained growth, yet they are a very important part of a country’s economy. Small and medium-sized enterprises (SME) are the biggest employment base of a country and are always employing new employees increasing the job creation and training aspect of an economy.

In an effort to increase revenue, SMEs face the challenge of financing. Most of the SMEs in Singapore lack the capital to help increase their production capacity, as well as improve branding marketing for their products both locally and overseas. Access to efficient and reliable financing channels is very important if the SMEs are to succeed. Singaporean SMEs face the challenge of unfulfilled customer payments which were as result of the slowing economy. This is made worse as some have been operating without any form of insurance to alleviate such risks.

Finance companies were always under strict business regulations that have made it difficult to offer financial services to small and medium-sized enterprises. This has negatively impacted the growth and expansion of these enterprises, especially during the slow economy. These enterprises need to make profits which are to help sustain them but with no funding, they are unable to expand and grow sustainably.

How Finance Companies Help SMEs Obtain Funds

Monetary Authority Of Singapore (MAS)’s Announcement

Monetary Authority of Singapore (MAS) recently made an announcement that it will ease finance companies in Singapore business restrictions. This was aimed at helping small and medium enterprises (SMEs) have access to financing.

This announcement was made following the central bank announcement, on its taking measures to offer stronger financing channels for upcoming Asian growth companies. The central banks financing was also aimed at investing in supporting technology infrastructure in support of the Future Economy’s recommendations.

The set regulatory changes will help SMEs access financing without collateral, therefore, the business clients will be ready to contract more easily. This also allows SMEs to be able to borrow larger amounts of loans without offering any collateral.

Impact On SMEs Trying To Obtain Financial Help

Owing to the Monetary Authorities of Singapore (MAS) announcement, many SMEs will be able to restructure their business and increase their investment capabilities to help them become more efficient and effective. This will also enable SMEs to borrow money to help meet their working capital requirements.

The financing channels will enable SMEs to review how they operate their businesses so they can be more productive and competitive.

Small and medium-sized enterprises (SME) will also be able to clear all pending business transactions and pay their business clients and help strengthen their business ties.

SMEs are the largest employment base in Singapore, their expansion and growth will continue creating jobs for the population, therefore, making major positive economic impacts on a country’s growth index.

SMEs will now be able to access larger amounts of loan funds, which will help increase their investing power, hence increasing the employment rate, increase production and make goods and services available in the Singaporean market and the world over.

Reasons Why Business Financial Help Is Needed

The MAS announcement has come at a time that SMEs needed the financial channels to help support their business sustainability. Since SMEs are able to access loans without offering any collateral they are able to generate more profits.

Business expansion/outlets expansion/move to a new office

The availability of financial support for SMEs will help support their business expansion plans. Such a funding move will make it possible for SMEs to establish themselves in the local and international market hence opening up of business outlets which will help grow the Singaporean economy.

When small and medium enterprises (SME) access financing, they are able to embark on financial organization capabilities which will ensure better management of their business decisions and investment plans.

Tide over business delayed transactions

The loans extended to SMEs will help provide working capital. Small businesses will be able to complete all pending business transaction, therefore, reviving business for their clients as well as their business. A good business atmosphere will ensure the different business venture are working together, supporting each other in the growth and development of their businesses. Production will also be increased hence more revenue is realized.

Required Bulk Purchases To Facilitate Business Needs

Bulk purchases by the small and medium enterprises will ensure their products are readily available in the market. Increased production will help positively impact the economy during the crisis period. In addition, with the extra funding, many businesses are able to source investment and collaboration overseas. Most of the Singaporean economy is supported by the SMEs; therefore the availability in the market will help address the demand in a market.

– Important Impact On Singapore’s GDP

SMEs are very important to the health and stability of any country’s stability. The small and medium sized enterprises are the greatest source of employment base, therefore, providing the majority of Singapore’s goods and services. Supporting and nurturing SMEs ensures there is high employment rates, sustainable growth for the small and medium enterprise and continuous expansion of the business venture.


Singapore’s small and medium sized enterprises (SMEs) have been affected greatly by the economic downturn. These enterprises have also been impacted due to the limited access they have to access loans and financing channels.

Many finance companies in Singapore were previously not extending loans to small and medium sized enterprises due to the risk involved. The recent announcement made by the Monetary Authorities of Singapore has offered the support and necessary channels needed by SMEs to grow and expand their businesses. The ease in the business restriction made on finance companies will enable them to extend loans without collateral to SMEs.

About Best Money Lender

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We provide low interest monthly repayment loan and we treat all customers professionally and always with a smile, so rest assure if this is the first time you all getting a loan from a licensed money lender. Our friendly staff will clear all your doubts before issuing the loan out to you.

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