For many small and medium-sized enterprises (SMEs), corporate treasury management often takes a backseat to day-to-day operations. However, effectively managing cash flow, mitigating financial risks, and optimizing funding sources are crucial for long-term business success. In this article, we explore why treasury management matters for SMEs and how strategic financial planning can enhance stability and growth.

Table of Contents

• Why Do SMEs Need Corporate Treasury Solutions?
• Three Key Strategies for SMEs to Manage Corporate Treasury
• How Does Syfe for Business Cash Management Portfolios Help?
• How Can SMEs Utilize These Portfolios?
• Why Choose Syfe for Business?
• Conclusion

Why Do SMEs Need Corporate Treasury Solutions?

Corporate treasury is about managing a company’s cash, debts, and financial resources to keep operations running smoothly. While it’s often seen as a concern for big companies, it’s becoming just as important for SMEs. In today’s uncertain market, maintaining financial stability is crucial, especially for smaller businesses that don’t get the same favorable bank rates as larger firms. With limited but valuable funds sitting idle, SMEs risk losing money to inflation instead of making the most of their financial resources.

“Effective cash management is essential for SMEs to maintain liquidity, reduce financial risk, and unlock growth opportunities. Without it, even profitable businesses can face cash flow challenges that threaten their stability and success”

Jack Prickett, Syfe CCO

Three Key Strategies for SMEs to Manage Corporate Treasury

1. Optimize Cash Flow

SMEs need an efficient system to track and utilize funds effectively while ensuring smooth operations.

• Earn higher returns on idle cash with high-yield accounts.
• Ensure timely access to cash for payroll, supplier payments, and daily operations.
• Automate cash management to reduce manual work and improve efficiency.

2. Manage Financial Risks

Unmanaged risks like currency fluctuations and delayed payments can impact profitability.

• Reduce currency risk by holding multiple currencies or using hedging strategies.
• Diversify banking partners to avoid reliance on a single institution.
• Use risk-adjusted investments to balance liquidity and secure returns.

3. Select the Right Financial Services

Selecting the right treasury solutions helps SMEs maximize returns and improve efficiency.

• Open business accounts with competitive interest rates.
• Use cash management platforms for automated transfers, reconciliation, and reporting.
• Invest surplus funds in low-risk options like money market funds or short-term bonds.

How Does Syfe for Business Cash Management Portfolios Help?

Syfe for Business offers two portfolio options designed to meet different financial objectives:

1. Cash+ Flexi

Ideal for businesses that need liquidity and competitive returns.

• Flexible access to funds for daily operational expenses.
• Higher returns than traditional business savings accounts.
• Low risk exposure while maintaining liquidity.

2. Cash+ Guaranteed

Perfect for businesses prioritizing capital preservation and stable returns.

• Guaranteed returns for financial stability.
• Secure investment option with no exposure to market fluctuations.
• Multiple tenures to suit your short and long term goals.

How Can SMEs Utilize These Portfolios?

SMEs can strategically allocate funds across Cash+ Flexi and Cash+ Guaranteed to optimize financial efficiency:

• For daily operational expenses: Use Cash+ Flexi to keep working capital readily available while earning a competitive return.
• For long-term reserves: Place surplus funds in Cash+ Guaranteed to ensure stable, guaranteed returns with minimal risk.
• For balanced financial planning: Leverage both portfolios to maintain a mix of liquidity and capital preservation based on business needs.

Why Choose Syfe for Business?

Syfe for Business provides SMEs with a modern and efficient corporate treasury solution that simplifies:

• Business cash flow optimization with automated tools and higher-yield accounts with no administrative fuss. 
• Financial risk management through secure and stable cash management solutions approved by MAS. 
• Liquidity management with flexible fund access and competitive returns for your cash flow needs.

How we compare to traditional solutions

*Fixed deposit account benchmarks are taken from the highest 3-month tenor rates offered by Singapore banks, including promotional rates. Updated as of 3 Feb 2025.

Note: Cash+ Flexi is a low-risk investment portfolio managed by Syfe. It is not a savings or deposit product at a bank. Investments involve risk and Cash+ Flexi does not provide any guarantee or assurance of returns.

Conclusion

Managing corporate treasury effectively is essential for SMEs aiming for financial resilience and long-term success. By utilizing Syfe for Business, SMEs can optimize cash flow, mitigate financial risks, and ensure liquidity—all while earning competitive returns. Take this strategic approach and earn with us today.