JUNE 2017: Part 1: Common Financing Issues Faced By SMEs
Over the next couple of weeks, we will consider findings from the SME surveys conducted by the DP Information Group in 2015/2016. It is hoped that as SME owners and operators, you will find these information useful for financing matters. The full report can be found at their website but we will select an interesting nugget or two for discussion, so we keep the reading light and easy.
What are the top three cost challenges faced by SMEs? If you state Manpower, Materials and Rental, you are spot-on! These factors have been stable for the last 3 years or so.
But what was interesting was that financing cost showed the greatest rise in terms of the number of SMEs concerned with such issue. In other words, there were more SMEs that are worried about financing cost than in the previous year. It became the 4th most difficult issue that SMEs were coping with – a jump of 16% over the previous year!
We feel this should not be the case as financing costs should not be expensive for SMEs but fair and justifiable, given your company’s financial performance and track record, among other factors. Perhaps, your existing business loans can be restructured to better fit your needs. Perhaps, invoice financing or factoring is a better solution than just a simple term loan.
At IFS Capital Limited, we are happy to consider alternatives for you. Why not drop us a note at https://www.ifscapital.com.sg/request-a-call-back/ and we can discuss in further detail with you.
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