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How UOB helps SME grow in the wake of COVID-19
Although COVID-19 has pummelled the Malaysian economy – along with that of the rest of the world – it seems to finally be on its way to recovery. The local economy expanded by 16.1% in the second quarter of 2021 compared to the same time last year1, outdoing the 14.3% figure forecast in a Reuters poll2. Furthermore, many economists predict a positive outlook for the second half of 2021 amid the accelerated vaccine rollout, the recent lifting of lockdown restrictions, and the re-opening of most economic sectors3.
The country's SMEs have been severely affected by the pandemic, with at least 150,000 closing since the start of the outbreak4. But SMEs are nothing if not resilient; and given the generally favourable economic outlook, it's time to start thinking about new partnerships and ways to grow your business.
There are many ways to prime your SME to seize timely opportunities in the future – so that when the right one comes along, you'll be in a prime position to succeed.
Maintain a robust cash flow with the right loan
To run a successful business, it’s essential to ensure that you have a healthy cash flow. Besides receiving timely payments, ensuring efficient stock management and securing external financing, you can also look into a range of loan options which allow ready access to more working capital.
Not all loans are made the same, however, so it’s crucial to pick the one that’s right for your business. UOB offers two arrays of flexible loan and solution financing that caters to SMEs business needs and to help SMEs to make it through during this challenging phase.
UOB BizMoney unsecured loan is ideal for companies in their growth stage that lack the required collateral, as it allows borrowing up to RM1 million without the need to put up collateral.
UOB BizSolution, a working capital package, including trade solutions with financing up to RM4.999m for SMEs to supplement their daily business needs, to ease cash flow.
Digitise your business to make it efficient and agile
The pandemic has accelerated digital-transformation efforts across the country5, and the government has its sights set on using digital tools to power the nation's future growth6.
For SMEs on the lookout to expand, it will be crucial to digitise legacy systems in order to streamline operations. Whether it’s scaling up your supply chain, opening another physical location or extending your e-commerce reach, digital systems ensure that your business is nimble enough to take advantage of new opportunities quickly.
For a more complete digital evolution, SMEs may consider UOB SmartBusiness – a holistic and cost-effective suite of task-management tools that covers operations including invoicing, accounting, payroll and customer engagement. Businesses can also apply for the SME Digitalisation Initiative Grant to save up to RM5,000, or 50% off the subscription price.
Safeguard your company with comprehensive insurance plans
The past 18 months have shown how unpredictable the world can be, and no one can foresee when the next natural disaster or seismic global event will occur. However, in business there are things companies can control, such as choosing to protect their SME with the right insurance products.
Having comprehensive coverage becomes all the more important as your company grows, as business liabilities may well increase as you explore additional growth avenues. Furthermore, insuring your SME can help to attract new business opportunities, as other organisations will see you as a responsible, credible and secure partner to work with. Drawing on UOB's business insurance solutions – which offer a myriad of protections – helps preserve your peace of mind as you expand your business.
Ensure that you have adequate cash reserves – and put them to use
As the adage goes, it's important to save up for a rainy day – especially with the added risks that come with growing your business. As a general rule, SMEs should always maintain a cash surplus totalling up to six months of operating costs. However, simply putting that money aside isn’t enough; you want to make sure that it's growing, while preserving liquidity.
To achieve this, you can open UOB BizCA+ a business account that offers attractive daily interest* and regular savings on business transactions such as transaction fee waivers on all DuitNow, Interbank GIRO and RENTAS transactions made via UOB Infinity – leaving you in an ideal position to maximise the value of your cash reserves.
From ensuring that you maintain a healthy cash flow to helping you digitise your operations, UOB offers the necessary tools to help SMEs thrive in the current climate. Contact us today to discover more about how our diverse portfolio of services can prime your company to capitalise on attractive business opportunities.
*Subject to the required Daily End Balance
