Many people have the dream of starting their own business someday in the future. It is the best thing – freedom to pursue your dreams, do something you love, get away from tyrant bosses and insufferable coworkers and best of all turn your intangible idea into a physical success. All these make the work involved in starting and operating your own business worth it.
However, starting a business comes with its unique set of challenges, the extent of which differs according to the type and size of business. Apart from the heavy initial capital investment, cash flow issues may be common in the early life of the business, until the venture breaks even and results in profits. Operating expenses can get out of hand as you dip your feet into the deep end of the entrepreneurship pool and unanticipated circumstances may arise forcing you to reach further into your resource pool.
However, what do you do when you are at the end of that well and bills still need paying? Do you throw in the towel and day that ‘this business thing’ is for those who have money? Certainly not! Most people quit without exploring all the options available, allowing their life’s work to just die and going back to formal employment with their tails between their legs.
This is why Singapore financial institutions, after careful examination of the market, the economy and the needs of various businesses have created a number of Singapore business loan packages for your benefit.
Because of the many types of businesses available, there are very many possible loans packages, which you can take advantage of to tide your business over the hard times. We offer loans according to the size of the business, the amount of income it registers, the use for the funds and other factors. You can also choose between short-term and medium term loans and secured and unsecured loans for your business.
Come to MPM Capital for your business needs and let us help you select a package to help you achieve your goals. Most of the businesses that have come to us in the past were facing such issues as working capital shortfalls, small tragedies, need for expansion among others.
Not only do we provide loans, we also offer financial advice on the best ways to use the amount in order to end up in a better and more profitable position as a business. Our interest rates are very competitive as well. Come to us today, and let us help you make a path for your business to grow to maturity.
7 Signs Your Business Face Financial Trouble
Within the last few decades, many companies, from high-profile mainstays to small local businesses, have fallen by the wayside. While some of those closures, administrations, and liquidations come seemingly out of the blue, there are somewhere in actuality the warning signs for the business were there before the final nail was driven in.
Listed below are seven key signs your business is in financial trouble.
Your Cash Flow Is Imbalanced
As the word goes, running a business, “cash is king.” An easy cash flow, where enough arrives to cover your outgoings, is key to keeping your organization operating. However, this flow could be sensitive, especially in small businesses. A supplier or customer perhaps not spending punctually may impact your cash flow, as may premature expansion or overspending in times wherever in actuality the going is good.
Negative cash flow is appropriate in the temporary while a fledgling company sees its legs or in the aftermath of an important expansion. But without positive cash flow, in the future, a small business cannot pay its costs and thus cannot survive. If your fund office is postponing spending its costs or team, it may indicate imbalanced cash flow.
Creditor Pressure Is Growing
The best way to help keep your creditors happy and minimize the pressure on your own company’s shoulders is to cover them on time. If your outgoings outnumber your income, it’s tempting to delay spending invoices. But doing this is just a sure-fire treatment for sour relationships along with your creditors, who may start chasing you for payment.
This may start the slippery slope into further trouble, as they’re likely to carry on chasing you until your debts are paid off. Creditors could even resort to legal action in an endeavor to retrieve their money, and you might wind up facing bailiff action.
You’re Always Refinancing
Refinancing alone isn’t an indication of financial trouble; it is a legitimate way of freeing up cash tied up in company assets by borrowing money secured against an assets’value. It can be used to lessen rates. While refinancing once isn’t abnormal, the business must manage to afford the repayments. If it occurs usually, it could be a sign of higher financial problems, and lenders may become cautious of companies continually refinancing, which may lead to more economic troubles later.
Until you are the main trader, staff are one of the very most vital the different parts of your organization, and employee morale often correlates along with your company’s health. One of the very obvious signs of financial trouble linked to staffing is layoffs and cutbacks in employee benefits, bonuses, or even a pay freeze.
The business could also change its contracts with staff, reduce hours, introduce zero-hour contracts or make staff work more for the same money. Doing so risks souring relationships along with your personnel and could cause to another location point.
Bad Company Atmosphere
Reducing advantages while increasing objectives on personnel will likely result in a bad environment and a drop in work satisfaction. Work can become less of a place of work and more of a place for fighting fires, constantly coping with problems instead of being productive. Team may lock onto that downturn and modify the atmosphere and start causing higher figures, too, taking people back to the last position about staffing issues.
Counting on Individual Contracts or Projects to ‘Sort It Out.’
Whenever a small business is operating healthily, it will have many clients or customers on the books with consistent income. Businesses in a less healthy position might put more weight on the agreements they do have. If one improvements company or stops being fully a regular source of business, the consequences will have an even more detrimental impact.
You could notice the company is relying more on fewer clients or focusing all of its efforts on acquiring new ones to the detriment of those they already have. This could sour relationships with existing customers and be described as a sign the directors are desperate for income.
Your Customers Have Noticed
Clients are very good at spotting when things change, and if they feel they’re getting less while paying the same money, they’re unlikely to stay quiet. If your employees are unhappy, prices suddenly rise, or benefits such as loyalty programs are scale back, rumors may start circulating, customers may start asking whether you’re closing, and in the worst-case scenario, it could get found by local or national media.