ESTABLISHED A BUSINESS ALREADY & WANT IT TO GROW?
You have been successful running your business for the first few critical years of business and you are working hard. However, like many other business people, you are working so hard that you no longer have time to work ON that business.
Growth is suddenly knocking on your door and you are finding it hard to manage the resources alongside the business growth.
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Managing the Growth of Your Business
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MSME Regionalisation
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Financing Your Company for Beyond
1. Managing the Growth of Your Business
Approach us at Malayan Bank if you are thinking about changing the structure of your company to support your growth.
Changing of corporate structure
You have been successful running your business for the first few critical years of business and you are considering options that will help your business to grow further: expand into overseas market, look at bidding for tenders and quotations, take advantage of tax benefits and exemptions, etc…
You may want to change your corporate structure from business to company (private limited) or limited liability partnership.
Prior to making a decision, do a mental checklist on your current obligation that will affect your decision:
- Do I have outstanding bank loan or any hire purchase loan?
- Do I have a vehicle under my current business that will require a transfer?
- Will my existing (if any) license be affected by a change in corporate structure?
- Does my company have outstanding charges?
If your answer to any of the above question is a YES, contact us to find outhow your answers will affect your decision.
Otherwise, you can consider changing your corporate structure from business to company or limited liability partnership.
Call us to find out how to go about changing your corporate structure and other associated benefits.
2. MSME Regionalisation
Regionalisation marks another set of challenges for many MSMEs. The diverse cultural and social differences between the different countries will mean that there are different sets of consumers' taste to cater for.
In countries like New Zealand, The Middle East and Russia, demand varies according to the seasons and thus sales turnover for product based companies may not be as predictable as in Singapore. To succeed, SMEs need a different set of capabilities to differentiate itself from competitors.
When MSMEs venture overseas, having an effective distribution channel is critical for their success because even the best product in the world will not translate into sales if companies do not have a channel to sell it through.
Malayan Bank is able to assist in bringing and providing you the latest in market information; from market research, trade statistics, listings of potential business projects and partners, to case studies of Singapore-based companies who have ventured successfully overseas.
Access to the right business and skills support are critical for small medium enterprises that want to grow. DP Bureau has always been working to ensure business support and skills services are integrated so businesses get the help that they need.
Malayan Bank will continue to work alongside the key Government Departments and other social and economic partners / associations / chambers of commerce and will strive to stay ahead to provide SME's the critical information that will assist in their success.
To find out more about starting, developing and growing a business, visit us at our office.
3. Financing Your Company for Beyond
You need to have moreinvestment and financial options for your growing business. Find out how we canhelp you establish a credit rating to expand your financial horizons.
To determine what path you will take to finding the right funding for you, you will have to pose yourself a series of questions.
What is your business? If it is an Internet or technology-based company you might need more money and an investor who is prepared to take a higher risk. The time frame is also crucial.
How long do you have to raise the money?
And what risks are you prepared to take in order to get what you need?
For example, are you prepared to use your own money, invest relatives and friends’ capital or seek alternative funding from a larger pool of investors such as banks, business angels or even venture capitalists?
1. Working Capital Financing Working Capital Loan is made available to businesses to supplement their operating capital. Typically such a loan is used to finance current production and / or distribution and / or accounts receivables. Also considered short-term loan, they are negotiated through a financial institution and established under a formalized line of credit, which is subject to various terms and conditions. Examples of working capital financing products include overdraft/line-of-credit, letter of credit and short-term loan.
2. Asset-based Financing Refers to loans granted usually by a financial institution where the asset being financed constitutes the sole security given to the lender. A typical example might be a commercial property in which the space is occupied by one or more tenants who are under contract to the owner under long-term leases. In these situations, the lender is satisfied that the asset provides adequate security value and that the revenue derived from the property will repay the loan over time. Lender assumes the credit risk.
The asset and corresponding debt is removed from the company's balance sheet thereby enhancing the company's borrowing ability to finance other financing requirements such as inventory, accounts receivable, growth etc. However, cost of borrowing is higher since the lender will have no recourse to the borrower for repayment of the loan.
3. Finance Lease / Hire Purchase Loans A finance lease is used to finance equipment for most part of its useful life, and there is a reasonable assurance that the lessee will obtain ownership of the equipment by the end of the lease term. A finance lease has similar characteristics to a term loan and a conditional sales contract.
An operating lease usually finances equipment for less than its useful life, and at the end of the lease term the lessee can return the equipment to the lessor without further obligation.
4. Factoring A third party (Factor) pays a company a percentage (typically up-to 90% of the face value of the accounts receivables) for its accounts receivables, then assumes all risk for collecting on the accounts receivables (with or without recourse to the firms discounting the receivables in the event of loss). Companies are paid immediately for every invoice issued.
Sometimes, the company’s customers are notified to remit directly to the factor.
Companies generally use factoring during Critical Growth periods and by those requiring immediate cash to solve a cash flow problem.
5. Venture Capital Venture Capital means equity and loan capital provided for a new and / or existing business undertaking by persons other than the proprietors.
It may consist of capital to provide funds (seed capital) for start-up situations and for existing high-risk small businesses suffering from capital deficiencies and a lack of collateral but having high profit potential as energizing growth companies, especially in the various fields of high technology.
Venture Capital is provided by private investors, institutional investors and specialized venture capital institutions. Venture Capitalists may participate on board of Directors providing additional resources. At the same time, this may mean a loss of autonomy for the company’s directors.
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