Chinese New Year 2023 falls on 22 January, and as we prepare to leap into the Year of the Rabbit, it is also the perfect time for your business to anticipate an influx of customers. The New Year holiday season is known to be a boon to retail, wholesale, e-commerce, and service industries as they typically record a spike in sales. For small and medium enterprises (SMEs), this festive period is especially when business financing like Working Capital Loans and Accounts Payable financing come in handy.
Short term loans help fund urgent business needs, such as low inventory and staff shortage, enabling you to ride on revenue opportunities during the holiday shopping season.
Retail sales in Singapore jumped by 11.8% in January last year as consumers flocked to shops for pre-CNY spending. Businesses need to be prepared to cater to a similar increase in demand this year; small business owners should purchase more goods ahead of time for the holiday rush. But this can be tricky if you do not have enough funds or working capital to do so.
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Funding Societies’ SME Loans
Funding Societies provides business loans for SMEs, ensuring your business capitalises on your prospects.
Working Capital Loans
A report by the World Bank shows that 46% of small businesses in East Asia and the Pacific have unmet financing needs. A third of the companies surveyed have severe cash flow problems, which hinders payments to vendors, workers, and business owners.
As a business owner, you can apply for a Funding Societies’ SME working capital loan, which provides fast funding up to S$2 million. This amount of financing is sufficient to oversee urgent and unforeseen upticks in cash flow needs, such as renting temporary storage for inventory or hiring additional part-time workers to cope with the holiday frenzy.
Funding Societies provides three types of working capital loans at varied interest rates*:
- Micro loans: This comes with a funding ceiling of S$100,000, up to 12 months tenor.
- Express business term loans: Obtain up to S$200,000, payable within 18 months.
- Business term loans: Get financing between S$100,000 and S$2 million.
Accounts Payable (AP) Financing
Businesses can get a cash advance against future purchases through accounts payable financing. Funding Societies’ AP Financing product helps businesses with worldwide purchases, covers the entire cost of manufacturing, as well as shipping of the goods. You only need to send us the invoice from your supplier, and Funding Societies will take care of the payment on your behalf.
Types of AP Financing
- Express AP Financing: This SME loan in Singapore offers a loan quantum up to S$100,000 with up to 60 days tenor. You will only need a minimum of four basic types of documentation to apply, stated further down this article.
- AP Financing: Borrowers can apply for up to S$500,000 on a loan term of 90 days. During the application, you will have to provide a minimum of 10 documents.
How AP Financing Works
Funding Societies’ AP Financing is straightforward. If you have access to AP Financing, you can stop worrying about paying for your purchases and concentrate on running your business. Here is how our short-term loans online work:
- Apply for AP Financing online.
- Show Funding Societies the invoices.
- We will pay your supplier within 3 days upon approval.
- Repay the short-term online loan in 90 days.
Documents You Need to Apply for AP Financing
You will need the following documents when applying for this SME loan in Singapore:
- Statements of your business accounts from the last six months.
- The most recent NOA and CBS report, in addition to the director’s or shareholder’s NRIC or passport.
- The most up-to-date invoices and payment records from the supplier.
We may need further paperwork as we individually evaluate each application for a short term loan in Singapore. When we receive your application, we will contact you shortly after reviewing it.
Conquer the Festive Season Opportunities with Funding Societies’ Working Capital and Accounts Payable Financing
Are you ready for your business to welcome 2023 on a high note? Apply now for Funding Societies’ Working Capital Loans and Accounts Payable Financing to help with purchasing inventory, renting additional storage, or employing temporary staff to welcome the flurry of business this season.
Wishing all our hardworking SME owners a prosperous year as you welcome every business opportunity that comes your way!
All products mentioned are fulfilled by FS Capital Pte. Ltd.
Disclaimer: The information provided to you in this blog post is intended only for general information purposes only and does not constitute legal or other professional advice on any subject matter. The materials and the information provided are not intended to be and do not constitute an advertisement or solicitation. In no event will Funding Societies be liable to any party for any direct, indirect, incidental, special, consequential or punitive damages for use of such information by you or any unauthorised third party.