5 SME Loan Options to Take Your Business to the Next Stage

Business loans can help the growth of your business in various ways. Whether they’re used to hire more employees, offer new products, expand to a new market, or purchase better equipment. These financing options can provide your business with the capital you require to branch out. Taking the crucial step towards improving your business might start with a loan, but it is easier said than done. Listed below are 5 small and medium-sized enterprise (SME) financing options that can help you decide on a funding option that is best suited for your business.

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1. Elevate

Elevate contains a credit line, granted by FS Capital Pte. Ltd., and an add-on virtual card, powered by MatchMove, developed in partnership with MastercardⓇ. Upon taking a credit line with Funding Societies, the Elevate Virtual Card can be used for online purchases, subscriptions, and other transactions to boost your SME’s spending power. The Elevate Virtual Card also allows cardholders to set a fixed credit limit on the card to prevent overspending. Virtual cards can serve as an effective means of managing your budget and keeping track of your expenses. All transactions are automatically recorded electronically, simplifying the process of monitoring spending and managing expenses. This also enables businesses to prevent unauthorised purchasing.

2. Accounts Payable (AP) Financing

Managing cash flow for operational purposes and other factors can be a daunting challenge for many SMEs, often feeling like an insurmountable barrier to overcome. AP financing helps you to manage your business cash flow by advancing funds against the invoices that you have issued to a supplier or vendor while waiting for their payment. AP financing gives businesses an advance on your accounts payable for 100% of the cost needed. By simply providing Funding Societies with your supplier’s invoice, we will process the payment on your behalf, ultimately streamlining the payment process and saving you the time and hassle.

3. Micro Loan

Micro loans are typically used by SMEs to cover marketing campaigns or inventory purchases. However, the funds can also be used for expanding your business in other ways. Funding Societies’ Micro loan is designed to be accessible and flexible, with funding amounts ranging from S$3,000 to S$100,000. Aside from that, businesses are only required to provide four documents for the decision-making process. Applicants can also receive your disbursement as fast as 24 hours upon approval.

4. Accounts Receivable (AR) Financing

Accounts Receivable (AR) financing provides an alternative to traditional business financing options. By pledging your outstanding invoices, firms can access cash earlier than the specified terms of payment. This funding option is particularly beneficial for SMEs with a consistent flow of recurring invoices on credit terms that can be tailored to suit specific business requirements. The tenor for an AR financing loan is up to 120 days with a credit line of up to S$1 million.

5. Supply Chain Financing

Supply chain financing is a type of short-term financing that allows SMEs to improve cash flow by extending payment terms to suppliers. It also offers early repayment options. In this financing arrangement, you (the SME) and your supplier agree on a payment schedule. Your supplier then has the option to receive early repayment by submitting the approved invoice to a financial institution. The financial institution pays your supplier a discounted amount of the invoice, which you only repay at a later date, thus providing a win-win solution for both parties.

Whether you’re looking for a micro loan to finance your working capital needs, AP financing to purchase new machinery, invoice financing to manage your cash flow, or supply chain financing to improve your relationships with suppliers, Funding Societies provides a range of financing solutions to meet your business needs.

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