How a CIMB Founders Card Can Help Your Business Solve Cash Flow Issues

For any small business owner in Singapore, cash flow is the lifeblood of your operations. It's the engine that pays salaries, buys inventory, and keeps the lights on. But what happens when a sudden event threatens to drain your working capital and cause a cash flow problem?

Cash flow issues for small businesses are not uncommon. If you are an SME owner, you’ve probably encountered a situation where you need cash to seize growth opportunities or manage emergencies, but your operating capital is tied up. So, what can you do about it?

Today, we'll introduce the CIMB Founders Card and how to use it to solve cash flow problems in a business.

What is the CIMB Founders Card?

The CIMB Founders Card is a personal credit card with the ability to apply for a working capital loan as a flexible, short-term funding solution to address immediate cash flow issues for small businesses. It offers business owners quick access to a lump sum of cash without the lengthy application process of a traditional business loan.

Here are some of the card’s core features:

• Flexible, Short-Term Funding: It provides fast access to working capital when you need it most with no additional documentation required, no fixed loan amounts, and no restrictive company criteria.
• 0% Interest for Working Capital Loan: You get up to 114 days of 0% interest on a working capital loan, so you save more on financing costs.
• Low Processing Fee: A minimal 1% processing fee is deducted from the approved loan amount, making it a highly cost-effective option for short-term funding.
• Dual Functionality: If you don't use the loan feature, you can still use the card for daily business expenses to enjoy up to 113 days 0% interest for eligible retail transactions.
• Global Advantage: Enjoy no foreign currency fee and no administrative fee for overseas spending in foreign currencies, great for businesses with international suppliers or operations.

Solving Common SME Cash Flow Problems with the CIMB Founders Card

Let’s see how the CIMB Founders Card can help solve potential cash flow problems or issues.

Disclaimer: The following scenarios are for illustrative purposes only. They are based on common challenges faced by SMEs and do not represent the stories or experiences of actual CIMB clients. The financial figures and circumstances described are hypothetical examples used to demonstrate how the CIMB Founders Card may be used to address typical business cash flow problems.

Purchasing Inventory and Supplies

Ms. Chan is the passionate owner of a thriving online store selling unique, artisanal products. She meticulously manages her inventory and cash flow to ensure her business remains profitable.

Ms. Chan's Challenge: A specific product, her hand-painted ceramic mugs, unexpectedly goes viral on social media. Orders pour in, and she sells out her entire stock within 48 hours. Her supplier, based in Malaysia, requires a substantial upfront payment of S$30,000 for a new bulk order to meet this unprecedented demand.

While her business is profitable, her cash is currently tied up in operating expenses, like paying her small team and marketing campaigns. She can't afford to miss this opportunity, but she also can't afford to drain her working capital, leading to a sudden cash flow issue.

The Solution: Instead of seeking a traditional loan and risk losing momentum, Ms. Chan uses her CIMB Founders Card to apply for a working capital loan from her card's available credit limit. Once the loan is approved, she receives the funds in her bank account, allowing her to pay her supplier immediately and secure the new inventory.

With the 0% interest for up to 114 days, she can repay the loan amount from the revenue of the sold mugs, capitalising on the loan without having to go into negative cash flow.

To Pay for Sudden Operational Expenses

Mr. Tan runs a small but reliable delivery service with a fleet of two vans. His business depends entirely on these vehicles to meet delivery deadlines for his local clients.

Mr. Tan's Challenge: One of his vans, his primary workhorse, suffers a major engine failure. The mechanic quotes a repair cost of S$15,000, which must be paid upfront. Without this van, he can't fulfill his delivery contracts, risking both his reputation and his relationships with his clients.

Paying for the repair in cash would deplete his emergency fund, leaving him unable to cover essential operating costs like fuel and employee salaries. He needs a quick and flexible financial solution to get back on the road and solve this cash flow problem.

The Solution: Mr. Tan uses his CIMB Founders Card to apply for a working capital loan from his card's available credit limit. Once the loan is approved, he receives the funds of S$15,000 in his business bank account.

This allows him to pay the mechanic immediately and get the van repaired within days. With 0% interest for up to 114 days, he can comfortably repay the amount using his regular service revenue, keeping his business running smoothly and preserving his cash flow.

Funding Business Growth

Mr. Lim runs a successful but small digital marketing agency known for its innovative campaigns. He has a team of six and a strong portfolio of local clients.

Mr. Lim's Challenge: A major international client has approached him with an offer for a large, six-figure contract to manage their regional social media accounts. In order to secure the contract, Mr. Lim estimates he needs to hire two new graphic designers and purchase specialised software licenses to handle the increased workload. This would cost him about S$10,000 up front.

While the contract would greatly increase his revenue, his business cash flow is tied up in ongoing projects and monthly salaries. He needs to act fast to secure this opportunity before the client considers other agencies. This classic growth scenario often leads to cash flow issues for small businesses.

The Solution: To seize this growth opportunity, Mr. Lim uses his CIMB Founders Card to apply for a working capital loan from his card's available credit limit. Once approved, he receives S$10,000 in his business bank account, allowing him to hire the new talent and purchase the necessary software immediately.

With 0% interest for up to 114 days, he can comfortably repay the loan from the revenue of the new client contract, enabling his business to expand and capitalise on this new opportunity without financial strain. 

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