How SmartLend Helps Seasonal Businesses Maximise Peak Season Revenue

Viewed by 123 Smart Towkays

Jun 25, 2025

How SmartLend Helps Seasonal Businesses Maximise Peak Season Revenue

Editor’s Note: This article was originally published by our team at SmartLend, our sister platform dedicated to simplifying SME financing through our network of alternative lenders. We’re sharing it here on Smart Towkay as the insights are equally valuable for business owners looking to navigate funding options and improve financial readiness.

That SMEs form the backbone of Singapore’s economy is a well-worn phrase. Yet many of them are facing hidden pains when it comes to accessing capital. As the data from Linkflow’s 2024 SME Finance Accessibility Survey shows, there are deep structural strains in Singapore’s SME ecosystem.

Fatimah Mohsin, Founder, Fatimah Mohsin The Wedding Gallery, knows these all too well. Despite establishing a flourishing bridal service provider, she faced challenges securing traditional bank loans due to the seasonal nature of her business.

Fortunately, alternative lenders and fintech platforms can often fill the gaps for these underserved sectors. SMEhorizon speaks with Fatimah Mohsin on her company’s challenges accessing capital, and how new financial services have lent their support towards her business goals. Danny Phua, CEO and Co-Founder of SmartLend, also highlights the issues faced by businesses like hers, and the avenues open to them.

Business in her blood

“From a young age, I was immersed in the world of entrepreneurship,” recalls Fatimah. “My father, affectionately known as ‘Raja Lelong’ (king of auctions), was a prominent figure in the Geylang Serai bazaar scene.

Beginning as a freelance makeup artist, Fatimah introduced modern, subtle styles to the Malay bridal scene. “The positive response from brides and the growing demand for my services led me to establish Fatimah Mohsin The Wedding Gallery in 2002.

“I vividly remember accompanying him, enthusiastically shouting ‘Lelong! Lelong!’ and witnessing the vibrancy of the marketplace. These experiences instilled in me a deep-seated desire to become a businesswoman.”

Challenges securing capital

Although her clients were satisfied, convincing banks of her business’s creditworthiness was not so easy. “As an SME, I’ve navigated numerous challenges in securing traditional bank loans to support our business’s seasonal needs,” she recalls.

“Our industry is inherently seasonal, with peak periods requiring substantial capital for inventory purchases and event preparations. However, traditional term loans often come with extended tenures and hefty breakage fees if repaid early, making them ill-suited for our short-term financing needs.

“Moreover, the application process for these loans is typically lengthy and complex. Banks demand extensive documentation, including audited financial statements and detailed business plans, which can be burdensome for SMEs like ours.

“This rigorous scrutiny, coupled with the perception of Seasonal Business like us as higher-risk borrowers, often leads to delays or rejections in loan approvals.”

Phua shares that many other SMEs face problems accessing traditional capital. “While the cost of borrowing has surged to a 5-year high, what’s more concerning is the sharp decline in approved loan sizes and the increased rejection rate, especially for businesses seeking above S$300,000.

“This suggests that many SMEs, despite demand, are being squeezed out of traditional financing channels — not necessarily due to lack of need, but due to tightened credit criteria post-COVID and greater visibility of their leveraged positions through platforms like Enterprise Singapore’s centralized system.

“It reflects a systemic shift: banks are becoming more risk-averse, especially toward SMEs without pristine credit files or strong collateral. Yet SMEs remain the backbone of our economy — they can’t wait 6-8 weeks just to be declined.”

Elaborating on the reasons that viable small businesses slip through the cracks, Phua says that one factor is a reliance on outdated risk assessment frameworks that don’t reflect how modern SMEs operate.

An emphasis on rigid criteria like past financial and bank statements analysis (even if the business is in a high-growth phase), static credit scoring, which penalises businesses with short operating histories or temporary dips (e.g. during COVID), and manual underwriting and long lead times, which aren’t compatible with the urgent financing needs of SMEs, are just some of the problems.

“This leaves many genuinely viable small businesses underbanked — not because they’re high-risk, but because the traditional model fails to understand their operating realities.”

Not replacements, but complements

Fortunately, options are available for SMEs. Phua explains that “alternative lenders and fintech platforms are not here to replace banks, but to complement them by addressing critical gaps in the financing ecosystem.

“While banks naturally focus on larger, lower-risk clients due to regulatory frameworks and cost-to-serve considerations, fintechs leverage technology, real-time data, and alternative credit models to support SMEs that may be underserved — such as those with limited track records, asset-light operations, or urgent cash flow needs.

“Fintech platforms can act as the first touchpoint for these SMEs, providing early-stage or short-term capital where banks may initially decline. Through strategic partnerships, fintechs can nurture these borrowers, help them build a repayment record, and eventually refer them back to banks for longer-term or larger facilities.

“This creates a symbiotic pathway — fintechs manage the high-touch, early-stage financing, while banks step in once risk is mitigated — ultimately expanding access to credit without direct competition.”

The Wedding Gallery is one SME that has leveraged these options to meet their business needs. Fatimah shares that she first began exploring alternative lenders around 2018.

“Initially, I had reservations about alternative financing options,” she confesses. “Concerns about higher interest rates, less regulatory oversight, and the credibility of these lenders were at the forefront.

“However, as I delved deeper, I discovered that many alternative lenders in Singapore are reputable and offer tailored solutions for SMEs like ours. Their streamlined application processes and quicker approval times aligned well with our operational requirements.

“Embracing alternative financing has allowed us to navigate our seasonal cash flow fluctuations more effectively, ensuring that we can meet client demands without the financial strain imposed by conventional lending structures.

“This experience has underscored the importance of adaptability and the value of exploring diverse financial avenues to support business growth.”

A helping hand towards business goals

In SmartLend, she found a financing platform that suited her needs. “The platform’s seamless digital process, coupled with dedicated human support, has empowered us to make informed financial decisions swiftly and confidently,” she says.

The partnership has paid off in the past Hari Raya season. “Anticipating a surge in demand for our festive collections, we recognised the need for additional capital to scale our operations effectively.”

“This swift turnaround allowed us to invest promptly in inventory and staffing, directly contributing to a doubling of our turnover during the festive period.”

Phua believes that its possible to make such lending sustainable, explaining that it comes down to two core pillars of safeguards and transparency. “We need to build systems that borrowers can trust — starting with strong identity verification, secure data handling, and smarter credit assessments that look beyond just traditional scores.

“Real-time cash flow and bank data give a far more accurate picture of an SME’s ability to repay than outdated financials. At the same time, we need to be upfront and clear — borrowers should see exactly what they’re signing up for: rates, fees, repayment terms, all laid out with no surprises.

“Our job as a platform is to act neutrally, show the best-fit options based on the borrower’s profile, and keep them informed every step of the way. Combine that with proper risk limits and audit trails, and we can create a financing ecosystem that’s not just fast — but also fair, secure, and built to last.”

Advice for SMEs seeking capital

Phua advises that SMEs that are looking to partner with alternative lenders:

Be prepared and transparent. Have your financials, bank statements, and business narrative ready. Alternative lenders move faster, but they still need to assess risk.

Be upfront about your current situation — strengths and challenges. The more transparent you are, the better chance you have of building lender confidence and securing terms that work for you.

Know your numbers beyond profit. Many SMEs focus only on revenue or profits but cash flow, repayment capacity, and existing loan exposure matter more to lenders. Understand your working capital cycle and how much debt your business can realistically manage. If unsure, seek advice before applying.

Don’t just chase speed — look at terms. While it’s tempting to take the fastest offer, not all fast money is good money. Compare effective interest rates (EIR), fees, repayment structures, and early repayment penalties.

Build a track record Even if you start small, repaying an alternative loan on time helps build a positive credit profile. This opens doors to better rates or even traditional bank loans down the line. Think long-term. Capital should help you grow, not trap you in expensive debt cycles.

Leverage trusted platforms. Work with platforms that pre-screen lenders, offer unbiased advice, and protect your data. The right partner can save you time, reduce costs, and connect you to lenders that actually understand your industry and needs.

Fatimah’s advice is for SMEs to:

Clearly define your financial needs: Before exploring financing options, assess the specific amount of capital required and the intended use—be it inventory purchases, staffing, or marketing. This clarity will help in selecting the most suitable financing solution.

Prioritise transparency and control: Opt for platforms that offer clear terms and allow you to maintain control over your financial documents.

Seek platforms with human support: While digital platforms offer convenience, having access to responsive human support can be invaluable.

Evaluate the speed and efficiency of the process: In time-sensitive situations, the speed of securing funds is crucial.

Consider the cost implications: Be mindful of additional costs associated with traditional loan brokers, who may charge success or intermediary fees ranging from 3% to 8%.