5 tips on business expansion with a SME loan

1. Expand your team

If you started your SME with just a handful of employees, you might find it is time to grow your team. A business term loan could be an important step to help you hire a key employee for a strategic role or to pay a larger team of additional employees who can help with larger-scale operations. It’s important, however, to assess if a larger team will help grow your revenue significantly enough not just to pay off your loan, but to grow your business as a whole.

2. Launch a new product

If your SME has done well so far selling one or two flagship products, it could be time to consider launching a new product line – whether to complement a current product, or to appeal to a new customer segment. This could involve additional costs associated with R&D, materials and actual production. If you’re sure a new product line will help you better cater to your customers’ needs, consider taking on a business loan to fund it.

3. Grow your physical presence

If your SME has grown too large for its current space, it might be worth looking into buying real estate with a commercial property loan – whether for a new shopfront or office space. This is especially true if you’ve recently expanded your team; if your retail space is too small for your expanded product line; or if you’re looking at expanding into a multiple-branch operation. Aside from providing additional space for your business, a new property could add a valuable asset to your company’s portfolio.

4. Buying new equipment

A big part of expanding your business is buying additional equipment, whether a new state-of-the-art 3D printer or a delivery van. New equipment could give you a real edge over the competition, but can be costly. A good way to fund large equipment purchases is with an equipment financing loan – especially if the new equipment will go towards helping your business become more profitable.

5. Going global

If your company has been doing well in Singapore, you could be considering expanding overseas to tap into a different market. This however is a significant move, and could require additional market research, a new physical space and additional employees.

Recently named the Best Bank in the World, DBS offers a suite of SME business loans for when your business is ready to expand regionally. Find out more, or apply online today.