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.
Running a successful business does not always mean getting easy access to financing. That is something a recreational fishing pond operator in Singapore learned the hard way.
Despite generating over a million dollars in annual revenue and having a steady stream of walk-in customers, the business owner faced multiple rejections when applying for a working capital loan. On paper, the business was profitable. In practice, lenders saw red flags.
The Problem Lies In Company's CBS History
The issue came down to two key factors. First, the company’s director had a historical default listed on their Credit Bureau Singapore (CBS) report. Although the incident stemmed from a dispute over late fees that had already been resolved, the blemish remained on record.
Second, the business operated largely on cash. While that meant strong daily turnover, it also led to a relatively low average bank balance. Unfortunately, many traditional lenders view this as a sign of financial weakness.
The business tried going through several brokers but ended up with no offers after more than a week. The loan applications simply stalled or got rejected outright.
What Changed?
At that point, the business owner turned to SmartLend’s Concierge Service for help. A Relationship Manager from the team took a step back and reassessed the situation beyond the surface-level credit scores.
They found several positives that were being overlooked:
- Consistent cash inflow from walk-in customers
- Healthy profit margins and repeat visitors
- No compliance or litigation concerns
- Availability of a third-party guarantor with a strong credit profile
Instead of positioning the business as a high-risk borrower, the SmartLend team reframed it as a cash-positive operation with past credit issues already resolved. They then engaged lenders who were open to alternative credit assessments and SME-friendly scoring models.
To address lender concerns, SmartLend led the negotiations and proposed a tailored repayment structure: weekly instalments. While this may appear demanding, the business operates on a daily cash flow model—unlike traditional setups reliant on post-sales collections—making it well-suited for such terms.
This approach achieved two key outcomes:
- The borrower secured much-needed funding.
- The lender mitigated risk through more frequent repayments.
It’s a win-win. And with consistent weekly payments, the borrower builds a repayment track record that future lenders can rely on—paving the way for potential monthly-term financing down the road.
The Outcome
Within three working days, the business secured a $60,000 working capital facility from a non-bank lender.
There were no excessive broker fees, no complex paperwork, and no long wait. Just clear communication, practical documentation and a match with the right lender.
What Other SME Owners Can Learn
This case highlights a common issue in Singapore. Many cash-based businesses such as food stalls, mini-marts, tuition centres and recreational outlets often face financing hurdles due to outdated or rigid scoring systems. A minor dispute from years ago or low bank balances can lead to automatic rejections, even if the business is thriving.
With the right guidance and access to a wider lender network, business owners can still secure the funding they need. The key is to present the business holistically and to know which lenders are willing to look beyond the surface.
If you are an SME owner considering financing, it may help to start with a proper pre-check instead of diving into multiple loan applications. You will save time and avoid unnecessary damage to your credit profile.
You can explore more on how SmartLend works with SMEs in Singapore below:
If you are navigating similar challenges, take a moment to explore your options and see what financing might actually be available to you. You may be more fundable than you think.
Takeaway: Before SmartLend, this SME had approached multiple brokers only to hit dead ends and wasted time. Through SmartLend’s lender network and pre-assessment tools, the business secured financing quickly and affordably, despite a flawed credit profile.
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