Cash in, cash out

According to the Singapore Business Federation’s SME Committee Recommendations for Budget 2013 report, 71 per cent of small and medium enterprises (SMEs) in Singapore face cash flow problems. With business costs on the rise, especially in the areas of manpower and industrial rents, business owners should examine their cash flow for weak spots. Businesses can look to UOB Business Banking for the various deposit and financing solutions to help manage cash flow.

Mr Adrian Ang, director of That’s Innovative, shares with TODAY how he manages his company’s cash flow.

Q. Tell us about your company.

Mr Ang: Established in Singapore in 2004, we are a one-stop event organiser. We have eight full-time employees and five contract employees. Our turnover last year was approximately S$1.6 million.

Q. How do clients pay you?

Mr Ang: We are a cash business. We take a 50-per-cent downpayment, with the remaining amount paid on the day of the event. Our customers mostly pay by telegraphic transfers or cheques. I’m considering a mobile point-of-sale solution so I can collect on-the-spot payment at events via credit or debit cards.

Q. How do you manage your cash flow?

Mr Ang: Through UOB Business Internet Banking. This platform is cost-effective as it offers lower charges for transactions and gives me the flexibility to track the outgoing and outstanding payments any time.

Q. Any tips on managing cash flow?

Mr Ang: Plan your payments and collections monthly to prevent hiccups in day-to-day operations. Manage your accounts online and evaluate your needs to find the right account for your business.

Produced by the TODAY Special Projects Team