The Myth of "One-Size-Fits-All" SME Financing: Why Every Business Needs a Custom Approach
For small and medium-sized enterprises (SMEs), access to financing is often seen as a one-stop solution for growth. Many banks, fintech lenders, and government programs promote SME financing as a universal remedy, offering standardised loan products and financial packages. However, the reality is that not all businesses have the same financial needs, challenges, or growth trajectories . The idea that a single SME loan structure can suit all businesses is a myth. This blog will explore why SMEs need a custom financing approach , the limitations of generic loan options, and how businesses can find financing tailored to their unique needs. 1. The Problem with Standardized SME Financing A. Every SME Has a Different Cash Flow Cycle A restaurant, an e-commerce business, and a manufacturing firm all operate under very different revenue models. While one might have daily cash inflows, another might depend on large orders paid every few months. A standardised business loan in Malaysia with f...