Business Tips And Tricks

6 Important Reasons Why Successful SMEs Take Business Loans

Loans have received a bad reputation over the years and especially in relation to SMEs. However, with all the new industries appearing over the years, more and more entrepreneurs are born. Small business owners are wary of debt financing because of the stories and misconceptions they’ve heard. Falling into the endless debt trap sounds terrifying. Many only think of taking loans when they are experiencing financial difficulties, and even then it remains an uphill task because it means accepting that they’re not doing well. Taking up loans isn’t only for the cash strapped business owners. It is actually for those that aren’t risk-averse or those we are seeking to upgrade their company. Large companies with big brands under their belt also take loans but for the right reasons. Their objective will be to bring the company to the next level.    Good reasons to take a loan for an SME  To better explain the line of thought in some of the successful SMEs, here are some situations that make sense to take a loan for a small business. 1. Expansion Businesses are growing and for growth to happen effectively, it usually requires money. Any excess money in business will most likely go into building its capacity and generally growing it in whichever way that is relevant. It is possible to expand using regular cash-flow, but the speed at which it will happen may not be appealing. Taking a loan gives an instant cash injection into the business thus increasing the speed at which expansion can occur. It will also ensure other monies go towards operational costs thus keeping the business expanding and running. 2. Capitalizing on business opportunities Sometimes offers come up and the business could use that particular item being offered at a reasonable price. A loan comes in handy to acquire such things, especially if it is a capital-intensive item required such as machinery or a vehicle.  3. Inventory A business must have an inventory before it can make any money. Inventory comes in large amounts for it to be economically viable and the situation is worse if

Read more »

A Comprehensive Guide For Starting A Business In Singapore – For Singaporeans And Foreigners

Singapore is an economic powerhouse not only in Asia but also across the globe. It’s also one of the safest countries to start and run a business both for residents and foreigners. Most people think it’s challenging to start a business in Singapore. The truth is, with the right amount of business funding and effort, it’s easy especially with professional guidance. Before looking at how to start a business in Singapore, there are reasons why Singapore is an attractive investment spot. Low rate of corporate tax, which is currently at 17 percent No withholding tax on non-resident shareholders’ dividends Tax exemption on a company’s foreign sourced income Ranked third as the world’s most competitive economy Ranked seventh among the most innovative nations in the world Ranked the second-best country in terms of the ease of doing business Ranks top in Asia and fourth in the world for intellectual property protection Has more than 80 Double Tax Avoidance agreements Requirements for incorporating a business in Singapore Before incorporating a company in this great nation, one should: Be at least 18 years Have the right working pass like the EntrePass or Employment Pass for foreigners. However, this is not necessary if one has no plans to relocate to Singapore to run the business. In that case, a local nominee can register it. How to start a business in Singapore 1. Choose a business structure One can select from an array of legal entity forms such as partnership, sole proprietorship, branch office, subsidiary, representative office and more. Entrepreneurs should not choose a business structure randomly as this choice will affect the business in different ways such as the ability to get loans and grow the business, credulity in the eyes of customers, attitudes of banks and much more. For example, when venturing into business with a friend, choose a partnership. On the other hand, if the small business has few risks and less likely to cause legal trouble with anyone, then sole proprietorship would do. These two structures aren’t subject to corporate taxes. A private limited company is the most preferred form of

Read more »

Business Guide: 6 Types of Business Correspondence You Can Consider

Businesses are of different types. We have small or big, national or local, private or public, partnership or proprietary, manufacturing or service, and competitive or monopolistic. Nevertheless, all of these businesses share certain approaches and concerns in a given business environment. They handle people both externally and internally, and their stakeholders may include employees, owners, customers, and even the community. Businesses also have several functional sections such as sales, accounts, personnel, marketing, administration, purchase and secretarial. Each of these departments has people running them, and for them to function seamlessly, they must communicate. Similarly, other persons that deal with these businesses, including suppliers and customers, have to communicate with any of these departments at some point. To be able to communicate effectively across all the departments, it’s important to look at the different types of letters or correspondence that are used as well as their features. When talking about different types of correspondence, we’re focusing on letters that go both ways. In other words, these are letters from the organization to other individuals and agencies and letters from other agencies and individuals to organizations. The types of business correspondence include: 1. Internal correspondence This refers to written communication between departments, employees, units, and branches of one company. It’s common for internal correspondence to be formal or informal. For the most part, regular internal correspondence is normally less formal, like the supervisor issuing some instructions to the staff. Email is usually used when sending internal correspondence. Other internal correspondence types include a memorandum, promotion letter, letter of dismissal, letter of approval, written reprimand, formal requests, and notice to explain. Typically, such communication is usually printed on the paper, which the sender signs and the recipients receive physically. 2. External correspondence This type of correspondence occurs between two organizations or between one organization and its customers. It is written communication that the company makes to parties that don’t belong to it. External correspondence is mainly made to creditors, prospective clients, suppliers, vendors, financial institutions, accounting and law firms, creditors, donors, sponsors, government offices, business affiliates and other offices that do business with

Read more »
You cannot copy content of this page