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Starting A Business - Are You Ready?
Starting your own business is a huge step – it can be rewarding but it is also full of challenges. Do you have the attitude, skills and finances to transform your business idea into reality? What are your strengths and weaknesses? Read on to decide if you are ready to start and run a business.
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Use the Business Start-Up Guide - Self-Assessment Checklist to find out if you are ready to start a business.
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Plan
Are you ready to be an entrepreneur? Understand the challenges of starting a business and develop a plan to help you decide if it has a realistic chance of success.
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Motivation
Being aware of your own motivations for becoming an entrepreneur and starting a business is critical to your journey. It is what drives you when the going gets tough and will often determine your priorities and the decisions you make both for yourself and your business.
Common types of motivation include:
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Mindset & Attitude
Adopting the right mindset will help you greatly with your transition into entrepreneurship. Many entrepreneurs have succeeded because they have the right attitude towards the challenges and problems they face.
Do you believe that these are true? If not, you might want to start thinking about incorporating these mantras into your belief system.
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Personal Characteristics
Starting, running and sustaining a successful business will require a fair amount of blood, sweat and tears. Do you have what it takes? Are you aware of your strengths and weaknesses?
There is no such thing as the “perfect” entrepreneurial profile, but there are some characteristics that many successful entrepreneurs have in common, such as:
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Skillset
In addition to having competent technical skills in your chosen trade, it will help greatly if you have:
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Support
Starting a business will be one of the most stressful things you will do in your life. Do you have support from your spouse, family and friends?
They need to understand the hard work you need, and support you when you have to work long hours or miss that family event. Communicate needs and expectations regularly.
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Financial
Are you financially prepared? Taking care of the financial aspects of both your personal and professional life will be the key to the success or failure of your business venture.
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Common Mistakes
Beware of common mistakes:
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Use our Self-Assessment Checklist to assess and evaluate your potential as an entrepreneur. In the process, you might just get to know yourself better, and better prepare yourself for the journey of entrepreneurship.
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Business Stages
All businesses go through successive stages of development. Whether you’re starting out or running a profitable business, get an overview of each stage’s unique characteristics and the key areas to focus on.
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Plan
Are you ready to be an entrepreneur? Understand the challenges of starting a business and develop a plan to help you decide if it has a realistic chance of success.
Start
Take care of the basics first – registration, funding, premises - then comply with licences and laws. You may want to plan for staff hires and tax payments or protect your assets
Grow
Consider long-term strategies to take it to the next level - expand the business, grow your team, improve processes or get more investors.
SPRING Singapore
SPRING Singapore is an agency under the Ministry of Trade and Industry responsible for helping Singapore enterprises grow and building trust in Singapore products and services. As the enterprise development agency, SPRING works with partners to help enterprises in financing, capability and management development, technology and innovation, and access to markets. As the national standards and accreditation body, SPRING develops and promotes an internationally-recognised standards and quality assurance infrastructure. SPRING also oversees the safety of general consumer goods in Singapore.
Our Mission and Vision
New SME Definition and Launch of New Online Tools and E-Services
New SME Definition
1. From 1 April 2011, small and medium-sized enterprises in Singapore will be defined as businesses with annual sales turnover of not more than $100 million or employing no more than 200 staff. Currently, SMEs are defined as enterprises with fixed asset investments of $15 million and below for those in manufacturing, and employment size of 200 and below for non-manufacturing enterprises1.2. Mr Png Cheong Boon, Chief Executive, SPRING Singapore, said, “The new definition reflects the changing economic landscape and diversified profile of businesses where tangible fixed asset may not adequately reflect the size or stage of development of a company. It helps us to better focus and allocate relevant resources, including grants to assist the SMEs. By using sales turnover or employment, we are also more aligned with global practices and this facilitates benchmarking."
3. The new definition comes after SPRING conducted an extensive review of global benchmarks and consulted various stakeholders. It was found that while the guidelines vary in the Asia-Pacific and European countries, sales turnover and employment size were commonly used to define SMEs.
4. SMEs can also look forward to more help with the launch of an online productivity assessment tool and two e-services to alert them to government procurement opportunities and to find suitable business premises.
Online IMPACT Assessment Tool
5. The Integrated Management of Productivity Activities (IMPACT) is an assessment tool that helps an SME to diagnose its productivity performance and pin-point the gaps to address. A new interactive version of the assessment tool is now available on the Productivity@Work website at the EnterpriseOne portal (www.enterpriseone.gov.sg).6. SMEs will be able to identify their strengths and weaknesses in productivity management, benchmark against companies in the same industry, identify productivity improvement areas, and develop an actionable road map to improve productivity. Being an online tool, SMEs can perform their own assessment anytime at their convenience.
7. To date, about 120 SMEs have conducted IMPACT assessments through the five Enterprise Development Centres (EDCs) and via SPRING's SME Management Action for Results (SMART) initiative.
8. At least 1,000 enterprises are expected to use the online assessment tool annually.
9. Besides the IMPACT assessment, the Productivity@Work website launched on 1 June 2010 provides a rich source of information on productivity concepts, tools to upgrade productivity, relevant government assistance schemes and case studies on productivity. To date, about 45,000 unique visitors have used the website.
GeBIZ Alerts Saves SMEs Time and Effort
10. SMEs can now also benefit from two new e-services available at the EnterpriseOne portal. The first e-service is GeBIZ Alerts, which alerts subscribers to bids posted on GeBIZ. GeBIZ is Singapore’s government procurement portal. Annually, more than 67,000 projects worth about $15.5 billion are procured through this portal. Currently, companies have to monitor the GeBIZ website regularly to seek out government tenders and ITQs. GeBIZ Alerts will save them time and resources by pushing customised information on government procurements to them. Some 30,000 companies will benefit from this alerts service. For the government, this means more bids may be received, thereby increasing the choice of selection.BizMap Helps SMEs Search for Suitable Premises
11. The second e-service is BizMap which makes it convenient for companies to search online for properties for rent or lease from government agencies such as the Housing and Development Board (HDB) and Singapore Land Authority (SLA), based on location, rental rates, size and property types. The search results are displayed in an interactive map for easy reference. Currently, companies have to go to different government agencies’ websites to look up and compare rental rates. Now, BizMap enables them to quickly locate suitable premises in the best locations at the most competitive costs, all at one website. Annually, for example, there are over a million searches for HDB and SLA-owned properties for rent.12. The two new e-services are joint efforts of EnterpriseOne and various government agencies such as the Infocomm Development Authority, the Defence Science and Technology Authority, SLA and HDB.
13. These announcements were made at the third annual EDC Conference. It is organised jointly by the EDCs located at the Association of Small and Medium Enterprises, the Singapore Manufacturers’ Federation, the Singapore Chinese Chamber of Commerce and Industry, the Singapore Indian Chamber of Commerce and Industry and the Singapore Malay Chamber of Commerce and Industry. With the theme “Go, Grow and Globalise – Building Capabilities”, this year’s conference focuses on strategies to build resilience, strengthen capabilities and achieve higher productivity. About 400 participants attended this free conference.
1 Non-manufacturing sectors includes services, construction, agriculture & fishing, utilities etc..
Click here for the Fact Sheet on New SME Definition
Click here for the Fact Sheet on IMPACT, GeBIZ Alerts and BizMa
Enterprise Development
SPRING is the enterprise development agency for growing innovative companies and fostering a competitive SME sector. We develop an environment for enterprise growth, nurture innovative start-ups, develop key industry clusters, and grow dynamic and innovative growth-oriented enterprises.
Together with industry associations and partners, SPRING serves enterprises from a range of industry sectors to develop industry-wide infrastructure, develop and upgrade capabilities and create new market opportunities.
Our assistance in 5 main areas to help SMEs grow and globalise :
* SPRING’s enhanced funding support of up to 70% would be effective for three years until 31 March 2015.
(i.e All levels up for corporate shareholders holding >50% of total shareholding of the applicant company and any subsequent corporate parents, and subsidiaries all levels down)
Quality&StandardsIndicators
Financial Programmes for s Me s
http://www.spring.gov.sg/Pages/homepage.aspx
Together with industry associations and partners, SPRING serves enterprises from a range of industry sectors to develop industry-wide infrastructure, develop and upgrade capabilities and create new market opportunities.
Our assistance in 5 main areas to help SMEs grow and globalise :
Toolkit
Self-help guides on :Voucher
$5,000 Innovation & Capability Voucher (ICV) supports SMEs to take their first step towards capability.Consultancy Projects
- Productivity improvements
- Human resources development
- Financial management
- Innovation
Solutions
The supportable cost categories include :- Equipment & hardware
- Technical solutions
- Professional services
- Design & renovation
Tax Incentive
Productivity & Innovation Credit (PIC) provides 400% tax deduction of up to $400,000 or 60% cash grant up to $100,000 expenses in productivity improvements and innovation. Covering six areas :- Acquisition or leasing of PIC IT and automation equipment
- Training
- Acquisition and in-licensing of Intellectual Property Rights (IPRs)
- Registration of selected IPRs
- Research & Development
- Approved design projects
Grant
Capability Development Grant (CDG) supports up to 70%* of the cost of productivity improvements and capability development that will result in greater enterprise competitiveness and business growth.* SPRING’s enhanced funding support of up to 70% would be effective for three years until 31 March 2015.
Loan
Govt-backed loans for working capital, trade financing and equipment financing, offered through participating financial institutions.- Local Enterprise Finance Scheme (LEFS)
- Loan Insurance Scheme (LIS)
- Micro Loan Programme (MLP)
Loan
SPRING works closely with the financial services sector to catalyse financing programmes for SMEs. We aim to make available more options for SMEs at each stage of their growth.
- Loan Insurance Scheme (LIS) and LIS+
Provides loans for working capital and trade financing - Local Enterprise Finance Scheme (LEFS)
Provides loans for the purchase of equipment and assets - Micro Loan Programme (MLP)
Provides working capital loans of up to $100,000 to small businesses with less than 10 employees.
Micro Loan Programme (MLP)
Overview
Loans of up to $100,000 for local SMEs with 10 or less employees.
| Use of Funds | For daily operations or for automating and upgrading factory and equipment |
| Maximum Loan Quantum | $100,000 |
| Interest Rate | * Minimum 5.50% interest rate for loan tenure of 4 years and below. |
| * Subject to Participating Financial Institutions’ assessments of risks involved. | |
Criteria
You may apply for a Micro Loan if your company meets these criteria :
- registered or incorporated in Singapore
- company has 10 or less employees OR has annual sales not exceeding S$1 million
- at least 30% local shareholding
- company's Group Annual Sales of not more than S$100 million OR company's Group Employment Size of not more than 200*
(i.e All levels up for corporate shareholders holding >50% of total shareholding of the applicant company and any subsequent corporate parents, and subsidiaries all levels down)
Enhancement to MLP for Companies less than 3 years old
The MLP has been enhanced to make loans more accessible to young companies. The Government has increased the risk-share in the MLP and companies must be less than 3 years old to be eligible for this enhancement.List of Participating Financial Institutions (PFI)
Banks
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Contact Numbers
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| DBS Bank Ltd | 1800 222 2200 |
| Malayan Banking Berhad | 1800 629 2265 |
| Oversea-Chinese Banking Corporation Ltd | 6538 1111 |
| RHB Bank Berhad | 1800 323 0100 / 6225 3111 |
| The Bank of East Asia Ltd | 6602 7848 / 6602 7849 |
| The Hongkong and Shanghai Banking Corporation Ltd | 1800 216 9008 / 6216 9008 |
| United Overseas Bank Ltd | 1800 226 6121 |
Finance Company
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Contact Numbers
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| Hong Leong Finance Ltd | 1800 3388 338 |
Other Financial Institutions
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Contact Numbers
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| Ethoz Capital Ltd | 6654 7799 |
| IFS Capital Ltd | 6270 7711 |
| ORIX Leasing Singapore Ltd | 6339 3622 |
| ^ Please note that Micro Loan may be subject to banks' credit approval | |
How to apply?
Before you apply
- Ensure that your business qualifies for the loan.
- Consult your banker or one of the Micro Loan Participating Financial Institutions. They will be able to give you professional advice and also assist your application.
- Prepare the supporting documents if your bank requires them :
- a copy of your business profile from ACRA
- audited accounts or certified financial statements
- bank statements
- personal income tax assessment of owners and directors
- Meet with your banker or financial institution. Bring the supporting documents for the meeting.
Applying for Micro Loan
- Download the application form and the application form guide. Find out from the lender what supporting documents you need to attach.
- Submit the Application Form with the supporting documents.
- Wait 3 weeks for the bank or financial institution to reply. Processing of applications may be longer depending on the size of the loan and other factors.
Upon successful application
- Receive funds from the bank or financial institution.
- Keep proper records of repayments. Repayments start 1 month after disbursement of the loan.
- Ensure you make repayments on time.
Performance Indicators
We define small and medium enterprises (SMEs) in terms of their annual sales turnover and number of employees.
Financial Programmes for SMEs
Capability Upgrading Projects Supported
- Enterprises with annual sales turnover of not more than S$100 million OR
- Enterprises with employment size of not more than 200 workers
Enterprise Development Indicators
Outreach to SMEsFinancial Programmes for SMEs
Capability Upgrading Projects Supported
Quality and Standards Indicators
Quality & Standards Indicators
http://www.spring.gov.sg/Pages/homepage.aspx
MICROCREDIT BUSINESS SCHEME
Loan to kickstart your business plan
Do you need financial assistance to start up/expand your business?
Do you worry about the need for collaterals, and you don't have any?
Do you have an actionable plan that you can confidently execute?
Depending on your business needs, MCBS allows you to borrow from S$3,000 to S$50,000 with affordable interest rates of between 8%-12%; depending on the repayment tenure, to kickstart your business plan.
Better control of your finances
Are you concerned about monitoring or missing your repayments?
Are you concerned about payments when your business has not started?
Spread your loan over fixed bi-weekly installments of up a maximum of 120 months*. You can have peace of mind on starting your business. Repayments can start when your business has commenced.
* Subject to loan size and the merits of your business case.
Additional resources to assist you in business planning
Do you need an independent view of your business plan?
Do you need more insights to running a business?
ELIGIBILITY
- The Applicant must be Singaporean.
- The Applicant must be 18 years old and above.
- The Applicant’s gross annual income must not be more than S30,000 per annum.
- The Applicant has no adverse credit history.
- -The Applicant has a sound business plan.
- -Applicant's business must either be registered as a Sole proprietor or Partnership.
- -Where the Applicant is a Partnership, it should not have more than two partners.
At MCBS, we will assist you in evaluating your business case to ensure its soundness and feasibility. We will also arrange training prior to the loan approval to equip your with the basic skills of running a business.
MicroCredit Business Scheme - Business Loan
Overview |
you have a business plan, we want to help you turn it into a reality. Together with MicroCredit Business Scheme Programme Office, POSB would like to give you the head start to success with the MicroCredit Business Scheme (MCBS).
Loan to kickstart your business plan
Depending on your business needs, MCBS allows you to borrow from S$3,000 to S$50,000 with affordable interest rates of 8% - 12%, depending on the loan amount, to kickstart your business plan.
Depending on your business needs, MCBS allows you to borrow from S$3,000 to S$50,000 with affordable interest rates of 8% - 12%, depending on the loan amount, to kickstart your business plan.
Better control of your finances
Spread your loan over fixed fortnightly installments of up to 120 months, depending on the loan amount. With a defer period of up to 6 months from the date of loan disbursement, you only need to start your repayment after that, giving you peace of mind to focus on starting up your business first.
Spread your loan over fixed fortnightly installments of up to 120 months, depending on the loan amount. With a defer period of up to 6 months from the date of loan disbursement, you only need to start your repayment after that, giving you peace of mind to focus on starting up your business first.
Additional resources to assist you in business planning
MicroCredit Business Scheme Programme Office will also assist you in evaluating your business case to ensure its soundness and feasibility. You will also get to attend a training workshop prior to the loan approval to equip yourself with the basic skills of running a business.
MicroCredit Business Scheme Programme Office will also assist you in evaluating your business case to ensure its soundness and feasibility. You will also get to attend a training workshop prior to the loan approval to equip yourself with the basic skills of running a business.
Eligibility
| Nationality | Singaporeans only |
| Age | 18 years old and above |
| Income requirement | No income or currently earning less than S$30,000 per annum |
Product Features
MCBS Loan Tenures and Interest Rates
| Tenure | Effective Interest Rate Per Annum |
| 1 - 5 years | 8% |
| 6 - 8 years | 10% |
| 9 - 10 years | 12% |
Interest Calculation
Interest is computed on a monthly reducing basis and is based on 365 days
Interest is computed on a monthly reducing basis and is based on 365 days
Repayment Terms
The loan repayments will be on a fortnightly basis
The loan repayments will be on a fortnightly basis
Late Fee
Late payment penalty of $20 is applicable for late payment
Late payment penalty of $20 is applicable for late payment
Financing solutions for your everyday business needs
Credit Cards Offer Online
Risks of Credit Cards to a Small Business Owner
Credit cards have various benefits that come with them. This is because they help people in keeping track of their expenditures. Small business owners also enjoy the benefits of having credit cards.
As much as they help them to track their financial expenditure they also have some drawbacks that make them serve as a disadvantage rather than an advantage. It can be somewhat risky for small business owners to operate with credit cards.
Here are some risks of credit cards to a small business owner.
A Bit Expensive
Credit cards for a small business owner can be a bit expensive. This is due to the high interest charged. The interest charged by credit cards is usually higher than a normal bank loan. This is very disadvantageous to small business owners since they have to pay for the extra interest charged.
Insecure
The credit cards are a bit insecure in a working environment. Card details can be gotten easily by employees or any other person who comes into contact with the card. This could lead to online fraud or identity theft. It is important to note that credit cards for business are risky and caution should be taken when handling credit cards in a working environment.
Fluctuating Interest Rates
There is a risk of credit cards to a small business owner since the interest rate is not fixed. This means that the company providing the credit card can adjust the interest rate depending on how the card is used.
Personal Liability
The owner must supply a social security number when applying for the credit card. This means that the owner will be held personally responsible for the debt. It is not the business which will pay for the debt but the business owner meaning that even if the business goes to extinction, the owner will still have to pay for the debt.
From the above, it is clear there are risks of getting a credit card as a small business owner. The above risks should be taken seriously for those who want to apply for business credit cards.
Starting your business
Our Business ToolBox has a selection of handy information and tools to help set up your new business.
Get a head start with our practical Business Guides
We want your business to thrive. We understand that you need to invest time in planning your operations and determining your vision. This will help you decide where you want to take your business it in the short, medium and long term as well as how to get the most out of the resources you have.
Our Business Guides provide advice for starting a successful business.
They also cover a range of topics including:
- Planning, people, cash flow, growth, investments and expanding into e-business
- How to conduct your own free business health check
- Understanding business better, so you can take your business where you want it to go.
The How to start a business guide covers the essentials for starting a new business. Topics include:
- Preparing to open your business
- Registering your business name
- Business structure
- Your business plan
- Start-up and on-going costs
- Your finance options
- Taxation, legal and compliance checklist.
We also have information on helping you define your business vision and writing a business plan.
Growing your business
So you’ve started your own business and now it’s time to start thinking about growth. We’ve put together some effective ideas, tactics and tools to help you manage your staff, grow sales and market your business.
Getting the right banking essentials
We understand that running a business at the same time as juggling your personal commitments is tricky. To make your life easier, we want to make sure have access to the right resources.
Our Business Banking Essentials brochure covers the information needed to help keep your business running smoothly. It covers a range of ways you can better manage your cash flow and your day-to-day banking needs. It covers:
- Transaction Accounts
- Savings Accounts
- Banking Access
- Payment Solutions
- Superannuation
Business planning and management tools
Starting your own business can be daunting. That’s why we’ve put together a range of information to make the transition from employee to employer easy. Our information includes:
- How to run a business which takes you through:
- Take your business places
- Business health check
- Business basics and essentials
- Cash flow
- Business growth and investments
- Online business
- Managing people
- Keeping on track with KPIs
- Effective time management
- Systemising your business
Planning your business
The following sites offer tips, templates, links and other information useful when starting your new business:
- Australian Venture Capital Association
- The Australian Bureau of Statistics (ABS) offers extensive information and detailed reports on business types, outcomes, demographics, and more, that can greatly increase the quality of your business planning.
- The Commonwealth Department of Innovation, Industry, Science and Research has a small business section, including a wide selection of links.
Getting your business licences
The Business Licence Information Services can tell you what sort of permit, licence or registration your business will need.
State and Local Government websites
Managing your staff
Team management and tools to manage your staff
It doesn’t matter what kind of business you’re starting, your staff will always be one of your most important assets. Managing them effectively can ensure that your business runs efficiently.
To help you we have the following human resourcing guides:
- Key rules for running team meetings
- Effective delegation
- 7 easy steps to recruitment
- Checklist for new employees
- Guide to writings T&Cs of employment
Legal & tax advice
Need some legal or tax advice?
Expert legal and tax advice at your fingertips
Legal and tax issues can arise in almost every aspect of business. We understand that it can be expensive to get professional advice every time you have a legal or accounting query.
That's why we provide our business customers with access to free online legal and taxation advice. You get 3 free online consultations on any single issue from selected accountants and lawyers.1
- Avoid excessive legal and accountancy fees
- Ask any question ranging from issues affecting your business to family law
- You'll be put in direct communication with a lawyer or accountant.
Free advice for a range of legal and taxation issues:
- Company law
- Business structures
- Leases
- Trade practices
- Debt recovery
- Resolving business disputes
- Protecting business assets
- Industrial relations.
Managing your cashflow
Managing your cashflow is critical to running a successful business. And we want to see your business flourish. To help you run things more efficiently, we’ve assembled a range of information to guide cashflow management.
Our simple, three-step approach
Cash flow affects businesses of all sizes. To look after your business’ cashflow most effectively, consider this three-step approach:
Step 1 - Cash flow planning and projection
We've got some great tools to help with cash flow forecasting. Download the cash flow forecast spreadsheet and an article on keeping on track with KPIs.
Step 2 - Getting paid sooner
Invoice promptly and actively manage your debtors to ensure payment is made in accordance with your budgetary timeline. To get more cash coming into the business you can also consider:
- Reducing your terms of trade so you're paid sooner (e.g. offer a discount for fast payment).
- Increasing your net profit, by either increasing your sales price or reducing your costs of sale or operating expenses.
Step 3 - Keeping the business running
There's a range of finance options to help you when cash flow is tight. Whether you are managing your everyday personal banking and day-to-day running of your business, to planning future growth, our Financing Your Business brochure takes you through finance solutions small and large for the short and long term.
How can we help?
We’re here to assist you ensure you are in control of your cashflow. To talk to us about the banking essentials that would suit your business; and finance solutions to support your business goals, drop into your local Bank of Melbourne branch or talk to our local business experts on 13 82 66.
The Detail
Conditions and fees apply. This information doesn’t take your circumstances into account. Read the terms before making a decision. All applications are subject to Bank of Melbourne’s normal lending credit approval criteria.
Report centre
Bank of Melbourne produces daily, monthly and periodic reports detailing the latest developments and trends in financial markets, the economy and in a range of industry sectors.
Economic Reports
Business Term Loan
At I-Espire Consulting, we are able to assist your company in getting additional funds for your business growth as we work closely with more than 10 different Banks and Financial Institutions. From loan amounts of as low as S$30,000 to S$1 million or more, we have the experience and track record of assisting our customers to get the working capital funds for their business expansion.
Some of the eligibility criteria that the Banks require are as follows:
- Is your company registered in Singapore?
- Do you have more than 30% local directorship?
- Is your company operationally active or dormant?
From our 8 years of experience in working with SME companies, we are well positioned to assist our customers in sourcing for additional banking facilities for their business.
If you would like to apply for the Business Term Loan or if you simply want to enquire with us for additional details, you may fill up the form below, and our Relationship Managers (RMs) will contact you by the next business day.