Syfe, the saving and investment platform, has published findings from a new report exploring the small and medium enterprise (SME) market in Singapore and reveals major ways in which firms are losing money.
The firm surveyed 350 SMEs and uncovered a myriad of challenges associated with cash management.
Nearly half prioritise guaranteed returns (48 per cent) and liquidity (45 per cent) – yet many rely on traditional banking solutions leaving significant value untapped.
The survey also revealed that the average Singaporean SME has fewer than 11 months of cash reserves to sustain operations during periods of poor performance, leaving them vulnerable to economic disruptions. Rising interest rates, inflation, and operational costs compound these challenges, while internal issues like delayed payments and supply chain disruptions further strain cash flow
The findings also show that SMEs prefer diversified strategies for cash management, balancing risk and returns. Popular methods include money market funds (43 per cent), standard business bank accounts (43 per cent), and fixed deposits (41 per cent).
Jack Prickett, chief commercial officer at Syfe, shared: “This data underscores the difficulties SMEs face in optimising their cash reserves. Many businesses are operating with limited financial buffers while external pressures continue to mount.
“At Syfe, we believe that SMEs deserve better tools and strategies to unlock the value of their idle cash. By empowering businesses with smarter financial solutions, we can help them build the resilience needed to navigate challenges and drive growth.”
Recovering funds
Syfe estimates that by leveraging smarter cash management strategies, such as those prioritising competitive returns and high liquidity, SMEs could recover significant financial value from their idle cash.
One example is Syfe Earn which was recently launched in partnership with Wallex, which is a tailored cash management solution designed to help SMEs unlock value from their cash reserves while addressing their top priorities. This product offers competitive returns of up to 3.5 per cent and no minimum lock-in period, addressing the critical need for guaranteed returns and liquidity.
Perks of Syfe Earn
Syfe Earn is designed to support a diverse range of businesses, from sole proprietors to mid-sized enterprises across various industries. Clients already benefiting from Syfe Earn include consultancy firms, food manufacturers, education providers, churches, and property management companies.
Beyond offering competitive returns, Syfe Earn solves two other pain points SMEs face: lengthy onboarding processes and limited liquidity. Businesses can start earning returns in as little as 24 hours, with funds readily accessible through next-day withdrawals, enabling SMEs to maintain operational flexibility without sacrificing yield.
Prickett added: “Syfe Earn is one way we’re helping SMEs build financial resilience. By turning idle cash into a growth engine, businesses can reinvest these gains into hiring, operations, or innovation – areas that directly contribute to economic growth.”
Hiro Kiga, GM, payments at M-DAQ global and co-founder, Wallex, stated: “SMEs often operate with limited financial resources, making effective cash management business critical. We’re excited to partner with Syfe to introduce this new feature, enabling businesses to transform their Wallex wallet funds into a steady, low-risk source of returns, while maintaining liquidity. This addition enhances our cross-border payments product line, offering speed, support, and savings.”
