Micro enterprises and small businesses are an integral part of Singapore’s enterprise scene, employing about 72% of the workforce and making up 99% of companies in the country, according to Business Times. Despite their contribution to the nation’s GDP, there is still a significant financing gap for small businesses.
This is due to the perception that small businesses are riskier borrowers as they have limited or no credit history with less financial experience and backing. They may not easily qualify for corporate loans from traditional financial institutions, and thus, are driven to seek funding from alternative sources.
Why choose small business loans
Most small businesses turn to borrowing to fund their working capital or expand the business. This helps them to remain in operations and be profitable in this lucrative environment.
Borrowing can be seen as a strategic business move with the aim to grow. Besides using the money to scale up operations, entrepreneurs can take advantage of the opportunities to attain more business.
That’s why business loans in Singapore are rapidly becoming essentials for any growing business. But how are small businesses thriving with business loans?
• Tap on a lucrative environment
The spirit of entrepreneurship is well-encouraged in Singapore with plenty of opportunities to advance. Small business owners can start their own company and have flexibility in the direction they want it to go. With the availability of small business loans, these entrepreneurs can access fast cash to sustain their growth and can pursue their dream of running a successful business.
• Provide financial support
There is always a risk involved when you start a business. However, the outcome can be rewarding and profitable – especially if you are able to provide goods and services that meet the supply and demand of the marketplace. It would be difficult to grow and thrive without the availability of capital. Small business loans provide the financing option for you to turn your business plans into a reality. Whether you are facing a shortage of cash flow or require replenishment of inventory, a loan can help you out.
• Capitalize on technology
With greater access to technology, small businesses stand a better chance of running their operations successfully. Think about accounting firms that require the latest software to carry out bookkeeping activities and service clients. Home-based businesses can also improve their E-commerce capabilities and reach out to more people. Entrepreneurs get to allocate more funds to generate buzz and market their business online.
• Flexible financing options
Aspiring entrepreneurs and small business owners are able to secure funding with low interest rates from many legal money lenders in Singapore. This is particularly encouraging for borrowers who may not qualify for traditional bank loans. Loan interest rates and loan terms may vary from one lender to the next, so the key is finding a business loan that can suit your needs to keep afloat and thrive successfully.
Small business loans are certainly beneficial in helping businesses maintain a competitive edge in a fast-changing business environment and achieve sustainable growth.