Many Small and Medium Enterprises (SMEs) in Singapore are struggling to meet their financial obligations today. Since SMEs contribute significantly to the growth of Singapore, many banks are offering loans to these small businesses. However, banks usually have stringent loan qualification requirements. DBS is also offering small businesses in Singapore different types of loans to boost their working capital and meet their targets and aspirations.
SME Micro Loan, Business Term Loan, and SME Working Capital Loan are some of the business loans offered by DBS. These loans are designed to expand your business and augment your working capital. These loans offer flexible repayment tenures and high loan amount, letting your business focus on the management of cash flow without having to be apprehensive about making large payments each month. The eligibility criteria and requirements are not rigorous and the application process is also convenient and hassle-free.
DBS provides multiple business loans that fulfil the needs of businesses that require flexibility in terms of loan quantum, access to funds, interest rates offered, and more. The various business loans offered by DBS are as follows:
The SME Working Capital Loan is aimed at helping the various SMEs in Singapore. This loan will enhance your cash flow and help sustain your growth plans. With the SME Working Capital Loan, you can borrow as much as S$300,000 at attractive interest rates for a period of up to five years and you will not have to offer any collateral. Currently, there is a promotional offer with this loan, wherein you will get shopping vouchers worth S$100 and preferential rates on loan disbursement. This is a limited period offer and will be applicable only until 31 December 2018.
If you wish to expand your business, you can opt for the SME Micro Loan. With this loan, you will get a special financing package which is intended to help you grow your business. This loan was introduced in combination with Enterprise Singapore to give local businesses easy access to funds. You can get an amount of up to S$100,000 for a period of up to four years to finance your expansion plans. Presently, you can enjoy a promotional deal with this loan, wherein you can get shopping vouchers worth S$100 and preferential rates on loan disbursement. This is a limited period offer and will be applicable only until 31 December 2018.
With the DBS Business Term Loan, you will be able to augment your cash flow and increase your everyday business operations. With this loan, you can borrow an amount of up to S$500,000 for a period of up to five years and you will not have to submit any collateral. The interest rate applied with this loan starts from 10.88% p.a. The process of application is quite transparent and you will be able to finish the entire process in five minutes.
With the DBS Overdraft facility, you will get access to funds easily and quickly. The DBS Overdraft facility is a revolving line of credit that frees up your cash which you can invest back into your business to help it grow. The interest applied will be only charged on the amount you have used. Hence, you can easily manage this low-cost financing solution.
If you are in an industry where you have to deal with numerous other businesses and you need to open up your cash trapped in the supply chain, you can opt for DBS Supply-Chain Financing. This advanced working capital solution will be favourable to all those who are involved in the business by leveraging partnerships with corporates to introduce more money into the supply chain. With this solution, both distributor/buyer and supplier will get adequate funding.
With the DBS Venture Debt Financing programme, a growth stage tech start-up backed by venture capital investors will be offered debt financing. DBS is among the first banks in Singapore to offer venture debt as another capital-raising option.
Some of the benefits of DBS Venture Debt Financing include access to the cross-border network of DBS, opportunity to improve equity returns, achieve flexibility balance and dilution. However, your tech start-up should be innovation-driven with pioneering technology and must have a disruptive business model targeting high-growth market segments.
If you are an auto dealer in Singapore, you can get cash from hire purchase agreements offered to customers by giving them easy payment terms and create liquidity instantly through DBS Block Discounting. This is an ideal way of building relationships with customers and boost sales. Some of the benefits of DBS Block Discounting include unparalleled convenience, access to the widest banking network in Singapore, freedom to control your costs and plan your finances effectively and easily with a fixed repayment schedule each month.
With DBS Accounts Receivable Purchase, you will get the chance to enhance your flow of cash by monetising your receivables and guard your business against buyer credit risk. When you submit your credit notes and invoices to DBS, you will get access to up to 90% of its value. If the buyer fails to pay after a fixed period of time following the invoice due date or in the event of insolvency, you will be guaranteed 100% credit protection. Other benefits of DBS Accounts Receivable Purchase include non-recourse financing and reconciliation and collection of receivables from buyers.
With the DBS Loan Insurance Scheme, you will be able to grow your small business together with the government. This scheme helps local businesses get temporary trade advances, trade loans and other assistance from participating financial bodies. As part of this scheme, the bank will take care of 25% of the risk and the government and private insurers would assume the remaining 75%. Since this scheme is assisted by the Singapore Government, International Enterprise Singapore (IE Singapore) and SPRING Singapore will pay 50% of the cost of the premium.
If you require funds to purchase commercial vehicles (fixed assets) to run your business, you can opt for the Commercial Vehicle Loan offered by DBS. With this loan, you will be able to minimise your upfront capital and get an amount of up to 90% of the valuation of the commercial vehicle. Also, you will get a repayment period of up to 5 years. DBS is currently offering a promotional deal with this loan wherein you will get shopping vouchers worth S$50 when you take a loan of at least S$50,000 over a period of at least 36 months. This is a limited period offer and will be applicable only until 31 December 2018.
With the DBS Business Property Loan, you are eligible to obtain up to 120% of the value of your property at zero fees together with a two-year fire insurance. This is a limited period offer and will be applicable only until 31 December 2018. The benefits that you will get with this loan include zero processing fee, full legal and valuation subsidy. This loan is applicable only to existing and new corporate customers with their business registered in Singapore.
If you run a business that requires you to use heavy equipment and you need funds to purchase or rent them, you can opt for DBS Equipment Loan. You will get an amount of up to 90% of the value of the equipment which you can pay over a period of 5 years. DBS is currently offering a promotional deal with this loan wherein you will get shopping vouchers worth S$50 when you take a loan of at least S$50,000 over a period of at least 36 months. However, to get the voucher you will have to apply to this loan online. Also, this is a limited period offer and will be applicable only until 31 December 2018.
If you have a fleet of ships that you need to run your business and you want to add more, you can opt for DBS Vessel Financing. With this fixed asset loan, you will get an amount of up to 70% of the cost of the ship, barge or tug. You can repay this loan over equal monthly instalments that will help you in managing your cash flow. To get this loan, your vessel must be registered in Singapore, Japan, India, Hong Kong or Malaysia. If you are buying a tug or a barge, the vessel’s age and the loan tenure must not be more than ten years. For other ships, the vessel’s age and the loan tenure must not be more than 20 years.
With the DBS Local Enterprise Finance Scheme, your business will get funds to purchase fixed assets. You have the freedom to borrow an amount of up to S$15 million to pay for the expenses involved in enhancing your equipment or factory or purchase a commercial property with the help of HDB or JTC Corporation with the Local Enterprise Finance Scheme. This scheme is run by Enterprise Singapore and can be used by all Singapore registered SMEs.
You have the option of applying for a loan with a tenure of between five and seven years at an interest rate of 4.75% p.a. or up to four years at 4.25% p.a. To be eligible for this loan scheme, the annual sales of your business must not be over S$100 million or you must have less than 200 people working for you.
The documents required to apply for the various SME loans mentioned above vary, but by and large you will have to submit the following documents:
To apply for the various types of business loans mentioned above, there is a simple process which you can carry out online on the official website of DBS. You will have to complete the online application form by entering all the relevant details together with the copies of the documents required. The steps involved are as follows:
It is always better to apply online because of the following reasons:
If you are applying for Local Enterprise Finance Scheme, Block Discounting, Vessel Financing, you will have to call DBS at 1800 222 2200 and the bank will arrange for a relationship manager to speak to you.
If you wish to apply for Supply-Chain Financing, you will be led by a corporate client, known as an anchor. DBS will get in touch with distributors and suppliers only after they have negotiated an agreement with an appropriate anchor. You can call DBS at 1800 222 2200 for more information.
If you want to apply for Venture Debt Financing, you will have to fill in an online form with all the details showing your interest. DBS work with their partner venture capitalists to help them make an assessment of the needs of their portfolio companies.