A well-run SME in Singapore had just completed its seasonal stock-up. The books looked healthy. Inventory was full, demand forecasts were strong, and the team was confident.
But supplier delays and longer-than-usual payment cycles created a mismatch between revenue timing and immediate expenses. The company found itself with just S$50,000 in available cash and a long list of bills: payroll, rent, and supplier invoices.
“It was not that the business was in trouble,” said the director. “We just had too much money stuck in stock and too many payables landing at once.”
Rather than wait it out or take on expensive credit, the business reached out to Ares Capital.
Step 1: Understanding What the Business Actually Needed
During the first consultation, Ares Capital did not ask how much the company wanted to borrow.
Instead, the question was, “What needs to be protected?”
This shift in framing helped the business think clearly. Ares Capital worked with the team to map out key obligations over the next three months. Rent, payroll, supplier payments, and operating overheads were all considered.
Based on this, it became clear that a S$200,000 loan would be sufficient. There was no need to apply for the full S$500,000 limit allowed under the Enterprise Singapore scheme.
Ares Capital then recommended the SME Working Capital Loan, a government-backed option under the Enterprise Financing Scheme. The company met all eligibility criteria:
- More than five years of operating history
- Over 30 percent local ownership
- Up-to-date tax records
- No overdue liabilities
“We were relieved to know we didn’t have to stretch ourselves,” the director said. “Ares helped us settle on a number that made sense, not just the maximum available.”
Step 2: Preparing a Lender-Ready Application
- Financial statements
- Six months of bank records
- Projected cash flow and revenue recovery estimates
Ares Capital cleaned up the formatting, wrote up a short explanation of the cash flow disruption, and ensured the materials aligned with what lenders expected. Because Ares Capital had an existing relationship with the participating bank, the application moved forward with fewer queries and no rework.
“What would have taken us weeks to figure out on our own was done in days,” the owner said. “They just knew how to speak the bank’s language.”
Step 3: Approval, Disbursement, and Breathing Room
Within four weeks, the loan was approved. The company received S$200,000 directly into its corporate account. No collateral was required. The repayment plan was spread over 24 months at an interest rate of 3 percent per annum. With 50 percent risk-sharing from Enterprise Singapore, the terms were favorable and sustainable.
The company used the loan to:
- Pay suppliers without renegotiating terms
- Settle payroll on time
- Maintain key inventory orders
- Avoid dipping into emergency reserves or taking on high-interest debt
“If we had waited longer, we might have missed the window to act,” the director said. “With Ares helping us, we fixed the issue before it got serious.”
What Made It Work
What the business needed wasn’t a miracle—just a loan that fit, and someone who could get it through without wasting time. Ares Capital helped them avoid applying for too much, filled in the gaps in the paperwork, and kept the process moving. There were no shortcuts, but things didn’t stall either.
“We probably could figure it out eventually,” the owner said. “But with Ares, we didn’t have to learn everything the hard way.”
Talk to Ares Capital Today
If your business is facing a similar cashflow gap or preparing for a busy sales season, contact Ares Capital early. Our advisors will help you plan, assess your eligibility, and secure government-backed financing that fits your operations.