Why the Next 6 Months Could Be the Right Time to Review Your Working Capital

For many business owners, working capital is something they only think about when cash starts getting tight.

By then, it may already be too late to plan properly.

Payroll still has to be paid. Suppliers still need to be settled. Rent continues to run. Customers may take weeks or months to pay. And when a new business opportunity comes along, the company may not have enough cash available to take it on.

This is why Singapore’s latest support measures are particularly relevant to SMEs.

On 29 July 2026, the Government announced its Second Support Package to help businesses manage cash flow and operating pressures.

One of the key measures is a temporary enhancement to the Enterprise Financing Scheme (EFS).

From September 2026 to March 2027, the Government’s risk-share for the EFS SME Working Capital Loan will be increased to 70%.

For businesses that may require additional working capital, the timing is important.

A Temporary Financing Window for SMEs

The enhanced EFS is not a permanent change.

The increased 70% Government risk-share is scheduled to run for a limited period, from September 2026 to March 2027.

That matters because businesses often wait until they actually need the money before thinking about financing.

But financing decisions do not always happen overnight.

A lender still needs to assess the business. Financial statements may need to be reviewed. Existing liabilities and repayment commitments have to be considered. Documentation has to be prepared.

If a company waits until it has an immediate cash-flow problem, it may have fewer options and less time to find the right solution.

The better question for business owners is therefore not:

“Do I need money today?”

It is:

“Will my business need additional working capital over the next six months?”

If the answer might be yes, this is a period worth paying attention to.

Why Working Capital Matters More Than Ever

A business does not necessarily run into trouble because it is unprofitable.

Sometimes, it simply runs out of cash at the wrong time.

A company may have strong sales but have to wait 60 or 90 days for customers to pay.

A contractor may secure a large project but need to pay workers and suppliers before receiving progress payments.

A retailer may see demand increasing but need to purchase inventory before making the next sale.

A growing company may need to hire additional staff before the additional revenue comes in.

These are all working capital situations.

Having sufficient liquidity gives a business more room to deal with these timing differences.

It can also prevent business owners from having to make poor decisions simply because cash is temporarily unavailable.

Don’t Wait for the Cash Flow Problem to Appear

There is a difference between borrowing because a business is struggling and arranging financing as part of proper cash-flow planning.

The latter is often overlooked.

If a company knows that the next few months will involve higher inventory purchases, new projects, increased payroll or slower customer collections, it makes sense to review the numbers before the pressure arrives.

This is particularly relevant during the current EFS enhancement period.

The 70% Government risk-share does not guarantee that a loan will be approved. The participating financial institution will still assess each application based on its own credit requirements.

However, the temporary increase is intended to support credit access for eligible businesses.

For SMEs that are already considering working capital financing, the current period may therefore be worth exploring rather than waiting until the enhancement period is coming to an end.

The Other Support Measures Are Helpful — But They Are Not Working Capital

The Second Support Package also includes other measures for businesses.

The SME Cash Grant 2026 will provide eligible SMEs with $500 per local employee, capped at $2,500 per business, with disbursement scheduled for November 2026.

Eligible hawker and market stallholders will also receive targeted rental support between September 2026 and February 2027.

These measures can provide some relief to businesses facing higher operating costs.

But businesses should distinguish between short-term relief and working capital.

A $2,500 cash grant can help with expenses.

It is very different from having access to a working capital facility that can provide significantly more liquidity for payroll, inventory, suppliers, projects or general operating requirements.

For this reason, SMEs should look at the support measures as part of a broader cash-flow strategy rather than relying on the grants alone.

Why Waiting Until March May Not Be the Best Strategy

The enhanced EFS risk-share is currently scheduled to end in March 2027.

That does not mean businesses should rush into borrowing.

It does mean businesses should avoid leaving the assessment until the last minute.

A financing decision should be based on the company’s actual requirements, repayment ability and financial position.

If your business has enough cash and does not require additional capital, there may be no reason to borrow.

But if you already know that your company is likely to require additional funding over the coming months, there is little benefit in waiting until the situation becomes urgent.

The strongest position to negotiate financing from is usually when the business still has options.

Not when the bank account is already running low.

Review Your Cash Flow Before You Need It

Business owners should consider looking at their expected cash position for the next six to twelve months.

Ask yourself:

• Are sales expected to increase?

• Will inventory requirements increase?

• Are customers taking longer to pay?

• Do you have large projects starting soon?

• Will payroll increase?

• Are there significant supplier payments coming up?

• Are you planning an expansion?

• How much cash do you need to maintain as a safety buffer?

• Do you already have existing loans or credit facilities that will affect your borrowing capacity?

These questions are more important than simply asking how much money you can borrow.

The objective should be to understand how much liquidity the business actually needs and when it will need it.

The Window Is Open Now

The Government’s enhanced EFS support creates a temporary period in which SMEs may have greater access to supported working capital financing.

It will not last indefinitely.

For businesses that are already considering additional working capital, the next few months could be an important time to review their financial position, understand their borrowing capacity and assess the available financing options.

There is no need to wait until the business is under pressure.

And there is certainly no need to borrow simply because a Government support measure exists.

But if additional working capital is likely to be needed, the time to review your options is while you still have time and choices — not when the cash has already run out.

The window is temporary.

Your business’s cash-flow requirements are not.