SME Funding: Signs You Need To Borrow Funds

Taking on business debt is often seen in a negative light. However, depending on circumstances, SME funding could actually be leveraged to grow one’s business.


Small and medium-sized businesses (SMEs) are the backbone of any country’s economy. Thousands of SMEs across the world provide valuable services and products that cater to a specific market and needs.

Though SMEs are often known for their specialty in providing niche services and products for the local communities with more personal customer service, they are also known to be vulnerable to a lack of funding.

Most business owners, no matter how small or big the size is, would always prefer to avoid taking on business debt whenever they could. While it is understandable (and some would say smart move on their part), it will eventually be inevitable for them at some point. Borrowing funds for your business is often seen in a negative light. But if the time is right, SME funding could even grow your business further.

It is imperative to have sufficient business capital if you want to grow and sustain your small business in the long run. So, what are the major signs that it is finally the time for you to borrow funds for your business?

Tell-tale signs that you will be needing SME funding

When it comes to growing your business, it all boils down to one thing: the right timing. Avoid growing too soon and too quickly as you’ll be faced with increased demands that are beyond your ability to provide.

Meanwhile, there are plenty of SMEs with amazing ideas that have stagnated because they’re too afraid to secure the funding they require in order to grow further. So, if you want to know whether or not the timing is right to get funding for your business, these are the major signs that you do:

1. Your business is dealing with cash flow issues

Cash flow-related issues are common among SMEs. Often, the issues are likely to revolve around making an upfront payment for labour and supplies; while only getting the payment from customers once delivery is made (or much later depending on the payment terms). 

In other words, even if your business generates considerable revenue, cash flow-related issues are inevitable. In this situation, SME funding could come in handy as it helps you to better manage your cash flow for operational expenses.

2. Your business receives big order/you require more inventory

Balancing cash flow is a must in any business. If you have an inventory of products that are yet to be fulfilled, this is a sign that your business has insufficient funds to purchase the inventory required. When there’s a huge demand for your products, having enough funds is necessary for order fulfilments. 

3. You have a plan to launch a new service or product

As soon as you have succeeded in providing a solution to your target demographic, it will make it even easier for you to understand other ways you can assist them with whatever problems or needs they’re having.

For example, you’re running a tiny vegan bakery catered specifically to a niche market. Your bakery is the only bakery in town that offers vegan-friendly baked goods; which makes you a unique provider for a particular demographic. And now you’d like to expand your business further by providing vegan-friendly meals and delivery service. Such expansion won’t be possible without a cash injection.

4. Your business needs to expand

When you’re expanding your business operations, you may have a plan; to either renovate your existing place of business or move to a bigger one. That said, the costs for moving and real estate rental can be prohibitive. 

Similarly, if you’d like to purchase new equipment or growing your pool of staff so they won’t overworked; you’ll need some cash to expand your manpower or purchase the required equipment.

Consider the best financing option for your business

There are a variety of ways to get funding for your business. Have you ever considered borrowing money for your business via an SME financing platform? At SmartFunding, we offer a couple of financing options for you to choose from; Term Financing and Buy Now, Pay Later (BNPL). Term financing allows you to get a quick short-term 12 to 24 months financing for working capital.

With BNPL, the procurement financing solution allows you to run your business smoothly. This option provides SMEs with the flexibility to finance the purchase of goods and services; with zero upfront payment and instead make installment payments over 6 to 9 months. Submit your application now!

This article is for informational purposes only and should not be considered as advice, solicitation, offer, or recommendation to buy or sell any financial products or services. We highly encourage you to consult a licensed, trusted financial advisor before making any major money decision and avoid investing any sum of money that you cannot afford to lose. Remember to research every investment and exercise your due diligence beforehand.

SmartFunding is a licensed SME financing platform regulated by the Singapore Central Bank, Monetary Authority of Singapore (MAS) under the Singapore Securities & Futures Act. SmartFunding holds a Capital Markets Services License, which deals in securities (CMS100637-1). For more info, follow this page or visit  SmartFunding

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