Supply chain issues, the war in Ukraine and inflation are raising concerns among economists and industry experts. Many are suggesting that we are entering a recession while some government officials claim that Singapore will be resilient as it has been over the tumultuous last couple of years.

Either way, it is prudent for SMB owners to plan ahead for possible recession and explore new sources of financing. It is said that the best time to look for new financing is when you can make the lender feel that you don’t need it. The worst time to do it would be when you need it the most as lenders will see it as a risk. Here are 5 sources of financing that SMB owners can make use of. 

1.  SME Working Capital Loan for operational cashflow needs

The SME Working Capital Loan (WCL), provided under Enterprise Singapore’s Enterprise Financing Scheme, helps business owners finance their operational cashflow needs. SMB owners can borrow up to $500,000 until March 2023, with a repayment period of 5 years.

To be eligible, you need to be a business entity registered and physically present in Singapore, have at least 30% of equity held by a Singaporean or Singapore Permanent Resident and an annual sales turnover of below $500 million.

2.  Bank loans catering to small businesses

In addition to government schemes, business owners can also take advantage of various loans offered by banks operating in Singapore. DBS provides different options for securing working capital, including:

• Venture Debt Financing: For tech start-ups in their growth stage that are backed by venture capital investors and with at least $3 million of equity already raised
• Supply Chain Finance: To free up cash trapped in supply chain processes for suppliers and buyers
• Business Loan: Up to $500,000 to support operational expenses or business expansion

OCBC offers similar loans to help SMB owners prepare for unexpected credit needs, or to cover short-term cashflow crunches. UOB also offers a business loan to generate working capital of up to $80,000.

4. Grants that subsidise purchase of tech solutions

Seeking financial assistance does not necessarily have to be for new funding. If you see certain IT solutions as essential for your business, you can also make use of subsidies that can ease the cost of purchasing these.

For instance, the Productivity Solutions Grant for SMBs subsidises 70% of the cost of cybersecurity solutions. With the help of this grant, you can adopt essential technologies and equipment to enhance business processes. These technologies can be sector-specific solutions in retail, food, logistics and construction or more general solutions pertaining to customer management, data analytics, cybersecurity, financial management and inventory tracking

Disclaimer: The information and publications are not intended to be and do not constitute financial advice or any other advice or recommendation of any sort offered or endorsed by Singtel. Singtel also does not warrant that such information and publications are accurate, up to date or applicable to the circumstances of any particular case. Any expression of opinion (which may be subject to change without notice) is personal to the author and the author makes no guarantee of any sort regarding accuracy or completeness of any information or analysis supplied.