การเงินซัพพลายเชน บริหารสภาพคล่อง ลดเสี่ยง ขยายธุรกิจข้ามพรมแดน l THE SME HANDBOOK SS10 EP.59

This episode of The SME Handbook, presented by UOB Bank, delves into the crucial financial aspects for Social Enterprises (SEs) and Small and Medium Enterprises (SMEs), focusing on how to overcome financial "pints" (pain points) to achieve sustainable domestic and global growth. UOB Bank, with its extensive network, aims to connect businesses of all sizes and across all sectors within ASEAN and worldwide. Mr. Yutthadej, from UOB Bank Thailand's Transaction Banking division, explains how banks assess SMEs. Primarily, they look at financial history, including sales figures. Beyond the company's financials, banks also consider the owner's profile. For lending and account opening, the company's financial statements are key. However, for microfinance and operational loans, the owner's personal financial standing and ability to negotiate are also considered. SMEs face numerous challenges, and when opportunities arise, they may not always be the first to seize them. Banks typically look for three main things when considering a loan application: the budget (financial statements), the nature of the business and its potential for continued profit, and crucially, the efficiency of management. Strong leadership is vital for growth. UOB Bank offers two main types of loans: working capital loans for day-to-day operations and management funds, and investment loans for expansion, such as building factories. For working capital, banks analyze the flow of money – production, sales, and cash inflows and outflows – to determine the required loan amount. A significant challenge for SMEs is the lack of collateral. While land or factories can be used, many SMEs may have already leveraged these assets for previous loans. In such cases, banks look for understanding partners who can assess the business's cash flow and provide financing incrementally, even without substantial collateral. The decision to lend hinges on a combination of the executive's vision, the business's growth potential, and the financial statements demonstrating the ability to repay. The discussion then shifts to the importance of financial management for survival and growth. Banks are particularly concerned about where an SME's money is tied up and areas needing improvement. Turnover efficiency is a key metric. Before approaching a bank, SMEs are advised to standardize their financial data, perhaps starting with Excel spreadsheets, and eventually moving to more robust accounting systems. Digitalization is crucial for connecting with the entire value chain, including transporters and other financial institutions. Accurate data entry into systems like Excel is the first step. For SMEs struggling with complex cash management, it's recommended to start anew with more transparent systems to facilitate growth and acceptance by financial institutions, including international partners. Standardizing data, identifying data sources, and then implementing online accounting systems are key. These systems, such as Order Management, Sales, and Accounting systems, can then link to e-invoicing and e-tax systems, offering benefits like tax deductions. Digitization simplifies loan applications. Banks are more comfortable processing applications when they have reliable digital documentation. This digital transformation is essential for SMEs to access working capital and investment loans. While marketing and sales are important, the "back-end" financial operations are equally critical for sustainable growth, especially when expanding internationally. Expanding into international markets requires SMEs to conduct thorough research on target markets, buyers, and profitability. The longer payment cycles in international trade (30-120 days compared to 7-30 days domestically) necessitate a larger working capital. Counterparty risk, dealing with unknown international partners, and extended credit terms become significant concerns. Accessing bank-backed funds or non-bank lenders for working capital and trade finance, such as issuing Letters of Credit (LCs), is vital. Digitization streamlines these processes, reducing inefficiency and uncertainty. Supply Chain Finance is highlighted as a critical tool. Traditionally, businesses operated in a linear, one-to-one fashion. Today, a more collaborative, team-based approach is needed, focusing on supply chain stability by diversifying suppliers and clients. Supply Chain Finance involves banks providing financing based on standardized documents of sale, connecting buyers, sellers, and financiers. Large companies can enroll SMEs into these programs, allowing banks to assess data and build confidence in real transactions, leading to lower interest rates for SMEs (potentially 6-8% compared to 8-15% for standard working capital loans). SMEs can access Supply Chain Finance by directly engaging with large business partners or by inquiring with their bank if they are already trading with UOB's clients. Some large businesses offer early payment discounts or dynamic discounting, which SMEs can inquire about. Addressing the fear that business partners will discover an SME needs a loan, it's explained that improving financial efficiency and seeking loans is a sign of proactive management, not necessarily a sign of distress. It can even be viewed positively by partners as a commitment to cost management. Managing foreign exchange (FX) and credit risk is crucial for international trade. SMEs should gather information from central authorities and relevant units. Testing markets before full expansion and negotiating terms with partners are recommended. Tools like bank guarantees and Letters of Credit (LCs) can mitigate risks. Understanding credit terms and meeting halfway with partners regarding working capital needs is essential. The volatility of exchange rates, particularly the Thai Baht, presents a challenge. Bankers and economists anticipate continued strength, making it difficult to predict costs and profits. SMEs can mitigate this by locking in exchange rates based on their profit margins. While large businesses might hedge a significant portion, SMEs can choose to hedge 30%, 50%, or 80%, leaving some room for fluctuations. Spreads in FX hedging can be high due to market volatility. UOB Bank offers solutions such as operating accounts, payment management tools (Internet Banking, Mobile Banking, APIs), Export Finance, and Import Finance. They incentivize the use of electronic transactions for speed and efficiency. The advice for entrepreneurs today, given uncertainty in exchange rates, tax policies, and other factors, is to focus on three key aspects for cross-border business: efficiency, profitability, and growth potential. Diversification is crucial, both in terms of markets and currencies beyond the US dollar, to reduce volatility. Grouping together as SMEs for joint sales research, logistics, and market expansion can lead to significant cost savings. An expert export team is also vital for navigating export documents, quality control, and customer service. Ultimately, the message is that with standardized systems, digitalization, and strategic diversification, SMEs can achieve sustainable growth. UOB Bank emphasizes its commitment to supporting SMEs in their international expansion.