For many SMEs in Singapore, debt is part of doing business. Whether it’s a working capital loan, trade credit, or government-backed funding, borrowing can help you grow — but only if managed with discipline and foresight.
Without a solid plan, debt can hurt your cash flow, limit access to future financing, or even risk your company’s long-term health.
Here are 8 smart, practical ways to manage business debt and keep your SME financially stable in Singapore’s fast-moving market.
It’s surprisingly common for SMEs to lose track of loan details when juggling multiple obligations. Not knowing the full picture makes it harder to plan or prioritise repayments.
What to do:
Maintain a central record with:
Review this monthly so nothing gets missed.
Not all debt is equal. High-interest loans can quietly drain cash over time if not addressed early.
What to do:
Focus on repaying expensive debt first, even if it means only making minimum payments on lower-interest accounts. Reducing interest costs frees up capital for operations.
If cash is tight, trade credit from suppliers can become a strain. But good supplier relationships offer room for flexibility.
What to do:
Request extended terms (e.g. 60–90 days) or payment instalments. Most suppliers would rather negotiate than chase overdue payments.
Blurring lines between personal and business finance creates confusion — and risk. It also complicates bookkeeping and ACRA/IRAS compliance.
What to do:
Use official business loans and financing tools. Avoid using personal credit cards or borrowing personally on behalf of the company.
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Singapore SMEs have access to helpful financing support — especially for digital transformation, productivity, and expansion.
Explore options like:
If your company is now in a better financial position, it might be time to revisit earlier loans taken on less favourable terms.
What to do:
Compare options from financial institutions to see if you qualify for lower interest rates or better repayment terms. Refinancing can reduce your monthly burden.
The key to debt management isn’t just how much you owe — it’s whether you can repay it without straining operations.
What to do:
Use cash flow forecasts to identify tight months ahead of time. That gives you space to plan — not panic.
Access to financing has improved in Singapore, but that doesn’t mean you should take every offer.
What to do:
Only borrow when there’s a clear need and repayment plan. Avoid loading up on credit that isn’t directly supporting business growth or sustainability.
Debt, when managed strategically, can help your SME expand and compete. But it requires regular attention, discipline, and the right tools to stay on top of it.
As a business owner in Singapore, you don’t need to do this alone. Strong systems, sound advice, and a clear repayment plan will keep your company healthy and resilient — no matter the market conditions.
Manual bookkeeping eats into time you could spend growing your business. Traditional accounting services charge more but still need constant guidance. There’s a better way.
Counto’s modern accounting solution combines AI that learns your business with expert human oversight. Once our system understands your patterns, it handles daily bookkeeping automatically. Professional accountants review everything for accuracy, and you get instant access to your dedicated Customer Success Manager via SMS or phone—no more waiting for answers about your finances.
Join forward-thinking businesses who’ve upgraded to intelligent accounting that adapts to you, not the other way around. Ready for accounting that actually gets your business? Chat with us now, email [email protected], or use our contact form.
Here are some articles you might find helpful:
Why ACRA Might Reject Your Company Registration in 2025 And How to Get It Right
10 Signs Your Singapore SME Needs a Digital Upgrade and How to Do It
Is Your Business Ready For GST Registration Key Indicators To Watch
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