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Government Backed Loans for SMEs – Limited Period Only

Loans and financing available for companies who needs working capital for a variety of reasons such the bulk purchase of inventories, repayment of outstanding loans which is of higher interest, purchase of equipments or purchase / rental of building.

 

Despite the credit crunch, Banks are still offering government-backed loans to SMEs. Under the Special Risk-sharing Initiative (SRI), the Government will take on up to 50% to 70% of the loan risks. These loans were made through 16 lenders and included older initiatives such as the Loan Insurance Scheme (LIS), Local Enterprise Finance Scheme and Micro Loan Programme. The new loans include the Bridging Loan and LIS+.

Go to fullsize image The current low interest rates for business loans are made possible by the backing of the government. However, the improving economy has led the Government to reduce the size and tenures of loans (changes announced on 28th December 2009). These revisions will take effect from 1st February 2010. If you are still pondering over whether to apply for a business loan, we will advise you to secure a commitment from the bank before the government initiative to support it expires at the end of January 2011.

 

Loan and Financing for the business and consumer market

  1. Business / Trade financing, (LC, Advance Receivables, Advance Payables financing)
  2. Property Financing and Refinancing (savings through lower interest rate obtained)
  3. Working capital financing (Bridging/Micro Loan)

 

Changes with effect from 1st February 2010

1) Bridging Loan Programme (BLP)

  1. Working capital loans amount reduced from S$5 million to S$2 million
  2. Government's share of risk adjusted from 80% to 50%
  3. Maximum loan tenure revised from 4 years to 2 years

 

2) Loan Insurance Scheme (LIS) and Loan Insurance Scheme Plus (LIS+)

  1. No change to loan amount (S$15 million) and Government's share of risk (75%)
  2. Insurance premiums payable by companies for LIS increased to 30 points
  3. Insurance premiums for LIS+ increased to 50 points

 

3) Local Enterprise Finance Scheme (LEFS) and Micro Loan Programme (MLP)

Government's share of risk adjusted to 70%

The Export Coverage Scheme (ECS) and Internationalisation Finance (IF) Scheme remain unchanged, while refinancing of existing loans will no longer be covered with effect from 1 February 2010. Schemes under the Special Risk-Sharing Initiative (SRI) - BLP, LIS, LIS+ and ECS - will be discontinued at the end of January 2011.

 

Why engage our services instead of going directly to the bank?

  • Applicable for companies whose loan application has been rejected by banks previously; applicants need not have prior relationship with the lending bank
  • We utilize our wide network of loan providers (local and foreign banks) to source for you the most suitable loan to address your business needs
  • Comparison of loan rates can be made against your existing or proposed loans to seek the best possible rate for your business and maximize your savings
  • Fast and efficient services (loan approval period is shortened through us)
  • Professional services rendered to reduce the hassle of the administrative and application process
  • Our advisory services and recommendations are free; no charges apply unless a loan amount is secured.

 

Our Strengths: Case Examples

1) We can promise an interest rate of 5% reducing rate, converted to a flat rate of 2.6%. A walk-in customer may be asked to pay more than that by the bank.

2) Our network of bankers is very experienced in loan applications. An average banker gets tough cases rejected and causes customer to be "locked-up" by the bank for up to 6 months.

3) We will go through the customer's statements carefully and spot potential problems and issues that the banks will raise. We will proceed to rectify the issues before submitting the application to the banks.

4) We have contacts from almost ALL (local and foreign) the banks in Singapore. After a quick assessment of the customer's statements, we will be able to inform the client which banks have the highest chances of approval with the best possible rate and loan amount.

5) If customer has already been rejected by a bank, we will be able to find out the underlying issues and rectify them before another application. We had case examples of some customers who were rejected by banks, but through our consultation and assistance, the company received approval for more than $100k.

6) Our fees ranges accordingly to the loan type and amount requested; our assurance is that our fees will always be charged reasonably.

7) As a case example, we have recently obtained $900k++ (without collateral) for a company with turnover of just over $1m. That is indeed an outstanding result.

 

Worklife Solutions Loan Consultancy Information

Should you require loans and/or financing for working capital for a variety of reasons, do not hesitate to give us a call to arrange for a free consultation. Our friendly staff will do their uttermost to assist you in whichever manner they can. Our fees have been given the thumbs up by our clients for being one of the most reasonable and value for money within the industry. To ensure that our pricing remains competitive:

    1. We guarantee all our clients the most competitive pricing available;
    2. Quality and efficient services;
    3. Value added services through collaboration with other partners and service providers to bring about a wider coverage of benefits to the clients (e.g. complimentary talks/seminar/workshops.)

 

How to Apply?

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