Why fast access to capital matters for SMEs

Why fast access to capital matters for SMEs With its Capital in 24 Hours promise, GXS Bank aims to help smaller businesses close cash flow gaps and respond quickly to growth opportunities. Small and medium-size enterprises (SMEs) play a major role in Singapore’s economy. According to SingStat, they account for 99 per cent of all businesses, employ two-thirds of the workforce and contribute almost half of the value added by enterprises. Yet many continue to face challenges in accessing financing and remain vulnerable to cash flow disruptions. SingStat data shows local SMEs have accounted for only about a tenth of total business loans over the past 15 years. For smaller businesses, limited collateral, shorter operating track records and stricter lending criteria can make it harder to secure loans. Behind many delayed invoice payments is a business owner juggling salaries, supplier payments and short-term cash flow pressures. As Singapore marks Micro, Small and Medium-sized Enterprises Day (MSME Day) on Jun 27, attention is turning to how SMEs can stay resilient amid uncertain market conditions and rising business costs. Digital banks like GXS Bank are taking a different approach to MSME financing. Through digital workflows and alternative data sources, GXS Business Banking aims to give eligible MSMEs access to capital in 24 hours. This can help business owners manage operational needs, respond more quickly to growth opportunities and scale with greater confidence. CAPITAL IN 24 HOURS: KEEPING BUSINESS MOVING In the SME world, financing is closely tied to timing. A business may secure a new customer contract but need upfront capital to start work before payment is received. For smaller firms, these cash flow gaps can quickly become bottlenecks that affect payroll, inventory purchases or the ability to take on new work. The challenge varies across industries. Construction and marine projects may require significant upfront spending to purchase materials, mobilise manpower and deploy equipment – months before milestone payments are received. In consumer-facing sectors like food and beverage, hospitality and retail, demand can fluctuate during holiday periods and economic slowdowns, but fixed costs such as rent and salaries still need to be paid. GXS Business Banking’s financing solutions are designed around a simple proposition: to approve and disburse funds to SMEs as quickly as possible. In assessing loan applications, it looks beyond historical financial statements and incorporates additional data points such as transaction flows and invoicing patterns. Artificial intelligence-enabled tools help streamline onboarding and credit assessment processes. “For business owners, this means faster onboarding, less paperwork, quicker credit decisions and more timely access to working capital,” said Mr Bret Dasgupta, regional head of lending, partnerships and embedded finance at GXS Business Banking. “This can be especially meaningful for smaller businesses with limited credit history or operating track records, or that may not have dedicated finance teams to navigate lengthy loan approval processes and extensive documentation requirements.” ACCESSIBLE FUNDING ACROSS DIFFERENT OPERATING MODELS To support SMEs at different stages of growth, GXS Business Banking offers a range of lending products spanning unsecured working capital, invoice and purchase order financing, and property-backed financing for larger loan amounts. For example, GXS FlexiLoan Biz allows eligible SMEs to access up to S$150,000 digitally in minutes with no setup or prepayment fees. GXS Business Banking also offers supply chain financing solutions that convert unpaid invoices and purchase orders into immediate cash flow of up to S$1 million. These loans come with flexible payment terms and grace periods, enabling business owners to manage cash flow with greater certainty. Backed by Grab and Singtel, the bank also offers special perks for Grab for Business partners and Singtel customers, such as discounts on transport and business broadband services. “Today, around one in two SMEs in Singapore is part of the Grab or Singtel ecosystem,” said Mr Dasgupta. “We have embedded financing solutions within these ecosystems that support businesses that may not yet have extensive financial track records but show strong operational momentum and healthy business activity signals. “We are also seeing encouraging early traction as we extend these learnings and capabilities across more digital ecosystem platforms.” BUILT AROUND SME NEEDS SMEs today operate in an increasingly complex environment. Supply chain disruptions and inflationary pressures have contributed to softer consumer demand and heightened market volatility. More businesses are contending with tighter margins, higher inventory and manpower costs, and slower customer payments. In this environment, access to timely and flexible financing becomes even more important. Beyond meeting immediate liquidity needs, it can help businesses respond more effectively to changing customer demand and market conditions. “Whether businesses are looking to manage temporary cash flow gaps, secure inventory ahead of price increases, fulfil customer orders or simply continue operating, our Capital in 24 Hours promise remains,” said Mr Dasgupta. “We want to help SMEs keep operations moving and give them the confidence to adapt and grow, even during uncertain periods.” Need access to working capital? Businesses can apply for financing through GXS Business Banking, with approved funds disbursed in 24 hours. GXS Business Banking consists of products and services provided by GXS Bank and GXS Capital. GXS Bank holds a banking licence and is regulated by the Monetary Authority of Singapore. GXS Capital operates under the legal entity Validus Capital (a wholly owned subsidiary of GXS Bank), which holds a capital markets services licence for dealing in capital markets products that are securities, issued by the Monetary Authority of Singapore. The GXS Biz Account and GXS FlexiLoan Biz are provided by GXS Bank. The Working Capital Loan, Invoice Financing, Purchase Order Financing and Accounts Payable Financing are provided by GXS Capital. GXS Bank and GXS Capital terms and conditions apply. Deposit Insurance Scheme: Singapore dollar deposits of non-bank depositors are insured by the Singapore Deposit Insurance Corporation, for up to S$100,000 in aggregate per depositor per scheme member by law. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured. GXS Bank and GXS Capital are separate entities and are not associated with the businesses of Grab, Singtel or their entities.