5 smart methods to use your SME loan

sme finance rhb

Here’s a fact: any company, business or organisation needs money to grow. You’ll need capital whether you are starting your first business or taking things to the next level. For example, it’s normal to get a loan to finance a small-to-medium enterprise (SME).

However, your business will not flourish just because you have extra cash after getting a loan. You need to strategize on how you’ll use your money to fund your business. Here are some smart ways to invest using your loan:

Purchasing additional supplies in inventory

Using extra capital to buy inventory is useful to replenish stock, try out new products, and manage surging demands on seasonal dips. For example, a flower shop may receive more orders of roses during Valentine’s Day.

Purchasing equipment

Some of the ways to get equipment for your SME include a credit card instalment program and buying it directly from the supplier. You could use your loan and some savings to purchase straight from the supplier, as banks can impose additional interests if you fail to repay on your due date if you chose to use your credit card.

sme finance rhb

Unforeseen expenses

There are always unexpected costs when managing a business, big or small. For example, you may need to purchase more inventory or hire more staff. Having a loan can cover these expenses in times of need.

Expand your staff

When your business is booming, you’ll need more workforce to keep up with your growing business. Not only will a loan cover the expenses of hiring, but it will also provide funds to train your new staff.


Marketing is essential to attract new customers and keep old ones loyal. These days, you can reach out to your target customers by having a website or a social media page. Traditional advertising methods can also be useful by setting up a booth in events and meeting new people. You can support these marketing methods by having a loan.


It’s crucial to have a game plan on how to use your loan to keep you and your business afloat. Need a loan to finance your SME? Visit https://www.rhbgroup.com/products-and-services/business/business-banking/sme-loans.