Should SMEs in Singapore take up bank loans to assist in their business – There’s an old saying that business or people should avoid debt as much as possible. For the older generation, debt seems to be something comparable to gambling, something that is bad, something that should be avoided.
Loans & debt has been around for many years ever since the start of the financial system. And it has been a vital part of the explosive growth of many western countries that have been using debt to do more business and grow at extraordinary rates that has never been seen before.
SMEs in Singapore has been slowly warming up to the idea of taking bank loans to finance the purchase of assets and also for business expansion and with this the recent years we have seen a higher take up rate of loans in Singapore.
SME bank loans are not exactly the easiest to get but the government has been very supportive to startups in the past with Micro Loans and for the SMEs with the Working Capital Loans. For those company that need more than what the Working Capital Loan can offer, they could also get a higher interest rate Term loan from the banks themselves.
With the recent increase in difficulty in doing business due to the new Covid-19 Outbreak that has caused the tourism and retail sector to slow down, we believe the government will be providing higher quantum of loans and also easier criteria to help business get pass this tough business climate.
So if you are a SME owner, why should you take up bank loans to run your business you may ask.
Businesses that require a bank loan will definitely benefit from the additional cash flow you have from taking up a loan for expansion. Investment into assets or into marketing will come back with returns that will help you speed up your business growth a little. This is one thing that most people do not realize that the risk of taking a loan and repaying the loan will be outweigh by the growth you get from investment into items and services that will definitely help you to increase in revenue.
For those who are going through cash flow short fall, you will also be able to survive the tough winter periods in business and come back up stronger if you were to tap on loans that are available to you and your businesses.
If you require some help from a loan broker in Singapore for your Singapore SME Working Capital Loans, we work closely with Avant Consulting Pte Ltd to assist in our customers getting the best rates and also fees. We also assist in making sure we have compared across the board to give you the best choice you have.
Mortgage and property loans and mortgage refinancing in Singapore is also one of the things this loan brokers do for you and your business.
K Cloud Accounting works closely to provide high quality services for our customers and also our friends. We will be glad to give you advice if you require help in any.
Should SMEs in Singapore take up bank loans to assist in their business