SME Global Funding

Singapore is well-known for its robust and thriving business environment, and a significant contributing factor is the array of grants and funding schemes available to entrepreneurs and small and medium-sized enterprises (SMEs). As a professional financial broker, SME Global Funding (smegf.com.sg) is committed to helping businesses access these opportunities. In this article, we will explore the various grants and funding options in Singapore in 2023, including eligibility criteria and who each program is best suited for.

For Startups:

1. Startup SG Founder

The Startup SG Founder (SSGF) program encourages and supports aspiring first-time entrepreneurs to start their own innovative businesses by providing mentorship and financial support. Through SSGF, first-time founders can access a startup capital grant of S$50,000, with a required commitment of S$10,000 as co-matching funds. The program also offers mentorship from Accredited Mentor Partners (AMPs), pitch training, networking opportunities with investors and corporates, secretarial and accounting support, and access to exclusive programs.

Eligibility:

• At least 2 Singaporean/Permanent Resident applicants
• First-time founders with no prior Private Limited entity on ACRA
• Key decision-makers who contribute meaningfully to the company
• Not employed externally and able to commit full-time to the company
• Have undergone entrepreneurship training
• Hold equity in the company, with a minimum of 30% collectively
• Company must be registered as a private limited entity in Singapore for less than 6 months
• Invest a co-matching amount of S$20,000 as paid-up capital on ACRA

Suited for: First-time entrepreneurs with innovative business ideas.

2. Startup SG Tech

Startup SG Tech is a competitive grant that supports Proof-of-Concept (POC) and Proof-of-Value (POV) projects for the commercialization of innovative technologies. The grant fast-tracks the development of proprietary technology solutions and catalyzes the growth of startups based on proprietary technology and a scalable business model. Successful applicants will receive early-stage funding for the commercialization of proprietary technology.

Eligibility:

• Registered in Singapore within the past 10 years at the time of grant application
• At least 30% local shareholdings
• Not a subsidiary of a corporate entity at the point of incorporation
• Group annual sales turnover not more than $100 million or group employment size not more than 200 workers
• Core R&D activities carried out in Singapore
• Main applicant undertaking a significant role in the company

Suited for: Startup companies with innovative, proprietary technology and a scalable business model.

Here’s a summary of the various grants and support programs for SMEs:

1. Operation & Technology Roadmap (OTR): Up to 70% funding support for developing technology roadmaps.
2. Productivity Solutions Grant (PSG): Up to 70% funding support for adopting pre-scoped productivity solutions.
3. Start Digital: Free adoption of two digital solutions for at least 6 months.
4. Technology for Enterprise Capability Upgrading (T-Up): Access to A*STAR’s Research Institutes for in-house R&D capabilities.

Bring Your Business Overseas:

5. Grow Digital: Funding support for participating in pre-approved e-commerce platforms for overseas expansion.
6. Local Enterprise and Association Development (LEAD) Programme: Up to 70% funding support for TACs driving capability development and internationalization projects.
7. Market Readiness Assistance (MRA) Grant: Up to 70% support for eligible costs when expanding overseas.

For help during COVID-19:

8. Career Trial: Short-term job trials with government-provided training allowance.
9. Jobs Growth Incentive (JGI): Wage support to accelerate local workforce hiring.
10. P-Max: Funding support for recruiting, managing, and retaining local PMETs.
11. Rental Relief for SME Tenants: Cash grants for rent relief.
12. Rental Relief for Tenants in Public Properties: Rental waivers for businesses in government-owned/managed properties.
13. Senior Employment Credit: Wage offsets for employing workers aged 55 and above.
14. SkillsFuture Work-Study Programmes (WSPs): Hiring fresh talent through Work-Study Programmes.

For hiring, training, and upskilling employees:

15. e-Adviser for Skills Training: Personalized recommendations for skills training courses.
16. SkillsFuture for Enterprise User Guide: Steps to get started on your SkillsFuture journey.
17. Citrep+: Up to 90% funding support for building ICT technical skills.
18. Career Trial: Assess jobseekers’ job fit through a short-term trial, before formal employment. Government will provide training allowance to the jobseekers for the trial period (up to 3 months)
19. Company-Led Training (CLT) Programme: On-the-job training for fresh to mid-level professionals.
20. Design Thinking Business Transformation Programme: Support for business transformation and innovation.
21. Employment Support for Ex-Offenders: Tap on ex-offenders as an alternative pool of trained and skilled workers.
22. Employment Support for Persons with Disabilities: Up to 90% course fee subsidies for hiring, training, and integrating Persons with Disabilities.
23. Enhanced Training Support for SMEs (ETSS): Higher course fee grants and absentee payroll funding for SSG-supported courses.

For developing your brand and improving brand awareness:

24. Grow Digital: Funding support for participating in pre-approved e-commerce platforms.
25. Local Enterprise and Association Development (LEAD) Programme: Up to 70% funding support for TACs driving capability development and internationalization projects.
26. Market Readiness Assistance (MRA) Grant: Up to 70% support for eligible costs when expanding overseas.

With numerous grants and funding opportunities available in 2023, Singapore is an ideal location for businesses to innovate, expand, and thrive.

There are numerous government-led initiatives designed to support businesses in various aspects such as technology adoption, overseas expansion, and workforce development. However, if these initiatives do not fully meet your business needs, or if you require additional funding, you can consider traditional business loans from financial institutions. SME Global Funding specializes in helping businesses secure the necessary funding to grow and prosper. We invite you to sign up for a non-obligatory, free consultation to explore how we can assist you in obtaining the right funding for your business. Let our experienced team guide you through the process and help you achieve your business goals.

SME Global Funding is here to help you navigate these opportunities and find the right fit for your business needs. Contact us today to learn more about how we can assist your business in securing the funding it needs to grow and succeed.

Singapore’s unique business environment offers tremendous opportunities for small and medium-sized enterprises (SMEs) to grow and expand. However, access to capital remains a key challenge for many SMEs. Fortunately, the government of Singapore provides a range of funding and grants to support SMEs, and business loans are also a smart option for SMEs looking to spur growth. In this article, we will explore why successful SMEs take business loans in Singapore, the funding and grants available to SMEs, and how to leverage on business loans to support business growth.

Singapore is a unique country for business growth due to its strategic location, political stability, and strong economic fundamentals. Singapore’s location at the crossroads of major shipping lanes and air routes has made it an important hub for trade and investment. Additionally, Singapore’s government has worked hard to create a business-friendly environment by reducing red tape, providing tax incentives, and investing in infrastructure.

Singapore’s strong economic fundamentals include a highly educated workforce, strong legal system, and stable political environment. Singapore has also been ranked as the easiest place to do business in the world for several years in a row by the World Bank.

Funding and Grants Available

SMEs in Singapore can leverage on a range of funding and grants backed by the government to support their growth. These funding and grants can help SMEs finance their operations, invest in research and development, and expand their business.

One of the most popular funding schemes for SMEs in Singapore is the Enterprise Financing Scheme (EFS). This scheme provides financing support for SMEs in areas such as working capital, fixed assets, and trade finance. SMEs can also apply for the Productivity Solutions Grant (PSG), which provides funding for SMEs to adopt technology solutions and improve productivity. Additionally, the Capability Development Grant (CDG) provides funding for SMEs to develop capabilities in areas such as branding, human resources, and innovation.

Leveraging on Business Loans to Support Business Growth

Business loans can be an effective way for SMEs to support their business growth. Business loans provide SMEs with the flexibility to manage their cash flow and invest in growth opportunities. Business loans can also provide faster access to funds compared to other funding sources.

SMEs can use business loans to invest in technology, increase inventory, and expand their physical premises. Business loans can also be used to finance marketing campaigns, hire new staff, and acquire new equipment.

Using the organization’s cash flow to finance growth opportunities may result in cash flow problems in the future. Using business loans can help SMEs maintain their cash flow while still investing in growth opportunities. By leveraging on low-interest loans, SMEs can manage their cash flow better and achieve their growth objectives.

SMEs looking to leverage on low-interest loans to spur growth can sign up here for a free consultation with a loan consultant. The loan specialist will help SMEs identify funding and grant opportunities and provide advice on how to structure their loan. This consultation can help SMEs understand how to use loans effectively to support their business growth.

In conclusion, Singapore’s unique business environment provides tremendous opportunities for SMEs to grow and expand. However, access to capital remains a key challenge for many SMEs. SMEs can leverage on the funding and grants provided by the government, and business loans are also a smart option for SMEs looking to spur growth. By using loans effectively, SMEs can manage their cash flow and invest in growth opportunities. Sign up for a free consultation with a loan consultant to learn more about how to leverage on low-interest loans to support your business growth.

As an SME owner, you know that cash flow is crucial for your business’s success. Unfortunately, there can be a substantial gap between revenue and cash flow, particularly when customers demand lengthy payment terms. Invoice financing (sales) can help bridge that gap by pledging your unpaid invoices to a bank in exchange for an immediate cash advance.

The advance amount you can receive is typically between 70% to 90% of the invoice amount. The duration of the financing will match the invoice maturity, which can be anywhere from a few weeks to several months. As the borrower, you will have to repay the advance as a lump sum. It’s important to note that invoice financing (purchase) is a separate type of facility that finances the payments of supplier invoices.

To determine whether your business is suitable for invoice financing (sales), you should consider if you have a significant amount of receivables “locked up” in your current assets. If receivables make up a high percentage of your current assets, particularly due to overly lengthy payment terms, you might run into working capital issues. In this scenario, invoice financing (sales) can help you access immediate cash flow, speed up the working capital cycle, and offer more generous payment terms.

One of the benefits of invoice financing (sales) is that the financing amount scales along with your business. As your business grows, the size of your receivables will increase, and so will the amount of financing you will be able to obtain. Invoice financing (sales) hence gives you access to a quick source of capital that automatically ramps up with your business, helping you create a positive feedback loop to spur even more growth.

It’s crucial to use invoice financing (sales) wisely, just like any financing tool. Before applying for it, SMEs should consider the risks, such as collection risk, financing against the same invoice multiple times, and careful consideration of overall borrowings. For instance, the invoice amount may cover the financing amount, but there is still the risk that your customer may be unable to settle the invoice on time, which exposes you to potential financial penalties from delayed payments or having to cover the full amount yourself.

To make the most of invoice financing (sales), it’s important to understand the relevant terminology. The financing amount is usually expressed as a percentage of the invoice value, typically between 70% to 90%. The financing tenure is the duration before the financing amount must be repaid, and there is often an upfront fee upon successful application. The disbursement period varies from bank to bank.

When applying for invoice financing (sales), the process should be quick and easy. SME Global Funding can assist you in the application process. You can drop a message here to discuss your trade financing needs and apply for a credit facility. Once you’ve successfully applied, you can submit your invoices and supporting documents online. Upon successful drawdown, your funds will be credited to your account within five working days, and you will receive an instant notification. You will have to repay the financing amount on the maturity date. In conclusion, invoice financing (sales) can be an ideal financing solution for SMEs with working capital issues. To use it wisely, SMEs must consider the risks, understand the key terms, and apply through a trusted loan broker such as SME Global Funding. We can help you access the financing you need to grow your business, so contact us today to learn more.

If you’re planning to invest in commercial property in Singapore, obtaining a commercial property loan is one of the primary steps to take. However, securing a commercial property loan in Singapore can be a complex process, and lenders have different requirements and criteria. In this article, we’ll discuss how to secure a commercial property loan in Singapore in 2023.

Determine Your Loan Eligibility

Before applying for a commercial property loan in Singapore, it’s important to determine your loan eligibility. Different lenders have different eligibility criteria, such as minimum income, credit score, and debt-to-income ratio. You can use a loan eligibility calculator to get an estimate of your loan eligibility based on your income and expenses.

When it comes to commercial property loans, lenders may have different eligibility criteria compared to personal or home loans. For example, some lenders may require a minimum business turnover or a certain number of years in business to be eligible for a commercial property loan. Therefore, it’s essential to research and understand the eligibility criteria of different lenders to increase your chances of getting approved for a loan.

Determine Your Loan Quantum

The loan quantum is the amount of money that you can borrow from a lender. Before applying for a commercial property loan in Singapore, you should determine your loan quantum based on the property’s value and your down payment. Typically, lenders in Singapore offer up to 80% of the property’s value as a loan, and you’ll need to pay the remaining 20% as a down payment.

The loan quantum for a commercial property loan in Singapore may also depend on the type of property and its usage. For example, lenders may offer a higher loan quantum for properties that are used for commercial purposes compared to properties used for residential or mixed purposes.

Choose the Right Lender

Choosing the right lender is crucial when securing a commercial property loan in Singapore. There are various lenders, such as banks, financial institutions, and private lenders, each with different loan packages and interest rates. You should research and compare different lenders to find the best loan package that suits your needs and financial goals.

When choosing a lender for a commercial property loan, it’s important to consider their experience and reputation in the market. Established and reputable lenders may have more flexible loan packages and better customer service compared to new or untested lenders. Additionally, you should consider the loan interest rate, repayment period, and other fees and charges before choosing a lender.

Prepare Your Documents

To apply for a commercial property loan in Singapore, you’ll need to prepare your documents, such as your NRIC or passport, income tax statements, bank statements, and property details. Lenders in Singapore have different document requirements, and it’s important to provide accurate and complete information to avoid any delays or complications.

The document requirements for a commercial property loan may vary depending on the lender and the type of property. For example, lenders may require additional documents such as a business profile, financial statements, or property valuation report for commercial properties. Therefore, it’s important to check the document requirements of different lenders and prepare your documents in advance.

Apply for the Loan

Once you’ve determined your loan eligibility, loan quantum, chosen the right lender, and prepared your documents, you can apply for the commercial property loan in Singapore. You can apply online or visit the lender’s office to submit your loan application. After submitting your application, the lender will review your documents, assess your loan eligibility and loan quantum, and determine your loan interest rate and repayment period.

During the loan application process, the lender may also conduct a credit check to assess your creditworthiness and financial history. It’s essential to have a good credit score and a stable financial history to increase your chances of getting approved for a loan.

Once your loan application is approved, the lender will provide you with a loan offer letter that outlines the loan amount, interest rate, repayment period, and other terms and conditions. It’s important to read and understand the loan offer letter carefully and clarify any doubts or questions with the lender before accepting the loan.

Fulfill Loan Conditions

After accepting the loan offer, you’ll need to fulfill the loan conditions to disburse the loan amount. The loan conditions may include paying the down payment, providing additional documents or information, or fulfilling any other requirements specified by the lender.

For example, some lenders may require you to purchase insurance for the property or provide a mortgage or collateral for the loan. It’s essential to fulfill the loan conditions on time and in full to avoid any delays or complications in the loan disbursement process.

Repay the Loan

Once the loan is disbursed, you’ll need to repay the loan amount along with the interest and other fees and charges as per the loan terms and conditions. It’s important to make timely and regular repayments to avoid any penalties or late fees and maintain a good credit score.

There are different repayment options available for commercial property loans, such as fixed or variable interest rate, monthly or quarterly payments, or balloon payments. You should choose the repayment option that suits your cash flow and financial goals.

In addition to regular repayments, you should also monitor the loan account and check for any discrepancies or errors in the loan statement. If you face any difficulties or financial challenges in repaying the loan, you should contact the lender and discuss the options available, such as loan restructuring or refinancing.

Conclusion

Securing a commercial property loan in Singapore in 2023 requires careful planning, preparation, and research. By determining your loan eligibility and quantum, choosing the right lender, preparing your documents, and fulfilling the loan conditions, you can increase your chances of getting approved for a commercial property loan in Singapore.

It’s also important to read and understand the loan terms and conditions carefully, make timely repayments, and maintain a good credit score to avoid any penalties or complications. With the right approach and guidance, you can successfully secure a commercial property loan in Singapore and achieve your financial goals.