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Taking An SME Loan For Your Business Is Good

When you’re an SME business towkay, getting from Point A to Point B in your pursuits may require outside financial help, not implying to AH-Long btw. Whether you need additional funds to cover day-to-day costs, an equipment purchase, or the build-out of your new office, an SME loan can help you achieve your specific goals.

Before you start the process of obtaining a working capital business loan, it’s important to identify how you are going to use the financing. Knowing exactly where you plan to use the working capital can help you create a strategic plan for your business and target how you will pay back the business loan.

Everyday operations

There are multiple costs associated with running your busy every day. From payroll to rent to marketing, the cost of daily operations can add up.

Working capital or SME business loan helps make cash available for business owners to better manage their expenses and any business fluctuations. Such financing can be a great tool for companies that experience extreme changes in business due to seasonality. SME business loans in that instance can help entrepreneurs get through off-peak seasons.


Whether you’re a restaurant owner or in a construction line, you rely heavily on equipment in the day-to-day flow of your business. One way to use your general business loan is to fund the purchase of equipment. Whether you need it to scale up operations or a piece of machinery is on its last legs, a general business loan can help you purchase the needed equipment or machinery.

Tenant Improvement

As an SME Towkay, if you’re moving into a commercial space that is empty, you’ll likely be responsible for paying for all or part of the buildout.

This can include installing a new kitchen for a restaurant or offices for a law firm. The landlord may give the tenant an allowance to pay for all or some of the tenant improvements. But anything above that amount is paid for by the tenant. This is where an SME business loan can be used to finance any remaining project costs.


Certain businesses such as retail or food stores rely on the sales of their inventory to generate income. Inventory can range from the latest fashion must-haves to butter and eggs for cupcakes. In this case, an SME business loan can be used to help small business owners buy inventory in bulk to properly stock their shelves and potentially take advantage of discount pricing for orders of a certain size.

Acquiring a business

If you are looking into buying another business, an SME business loan may be the tool that will help you pursue your dream. It’s important to work with a trusted bank or private lender who can help you identify an affordable loan that will support your long-term goals.

Buying over Franchise

Buying and operating a franchise often lands in between bootstrapped entrepreneurship and traditional employment. If you are an aspiring franchisee, you can use an SME business loan to get your business off the ground and running. Being a franchise owner means you will have the franchisor’s resources, business model, and stability while enjoying small business ownership. You can use a working capital loan for almost anything you need to get your franchise going.

If you do not know what type of SME business loan suits your needs, Apply With Us Now and we will show you how!

The TBLP was introduced to help enterprises access working capital.

As announced in the Solidarity Budget on 6 Apr 2020, the Government will enhance the TBLP further with 90% risk share. The enhancement will apply to new applications initiated from 8 April 2020 until 31 March 2021. For applications that are pending approval from PFIs, enterprises are advised to speak to their PFIs on their eligibility.

As announced on 12 Oct 2020, TBLP will be extended from 1 Apr 2021 to 30 Sep 2021. Under this extension, the Government’s risk-share on the loan will be lowered to 70% with the maximum loan quantum lowered to S$3 million. This is to calibrate the support for businesses as the economy gradually recovers.

As announced on 5 Jul 2021, TBLP will be further extended for 6 months, from 1 Oct 2021 to 31 Mar 2022, under the same parameters

If you do not know what type of SME business loan suits your needs, Apply With Us Now and we will show you how!

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