What Are The Alternative Financing Channels For SMEs? (Amended Version)

The Singapore’s Government has for a long time been trying to cultivate a spirit of entrepreneurship among Singaporeans. But it recognises the difficulties SMEs may face in securing financial aid from banks; hence it has come up with a host of schemes to assist SMEs.

Government Assistance Schemes

There exists a number of loan and insurance schemes co-funded by the Government [specifically, IE (International Enterprise) Singapore and Spring Singapore] and administrated by participating financial institutions. For more information visit the EnterpriseOne website.

But here, we present you the gist of these schemes.

Spring Singapore

Micro Loan Programme (MLP)

Singapore-registered firm and at least 30% local shareholdings and maximum sale turnover is $1 million OR 0 – 10 employees
Further maximum group turnover is $100 million OR 0 – 200 employees
Maximum loan of $100,000
May be used for daily operations or automating and upgrading factory and equipment
Minimum interest of 5.50 % p.a. for loan tenure <=4 years

Local Enterprise Finance Scheme (LEFS)

At least 30% local shareholdings and maximum group sale turnover is $100 million OR 0 - 200 employees
Maximum loan of $15 million
Factory Loan
Machinery Term Loan / Machinery Hire Purchase
Min interest of 4.25% p.a. for loan tenure <=4 years and min interest of 4.75% p.a. for loan tenure >4 years

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

For both local and overseas facilities
LIS insures your loan against default risks. Insurance premiums co-shared between the government and your firm
For domestic trade: at least 30% local shareholdings and maximum group sale turnover is $100 million OR 0 – 200 employees
For overseas trade: Singapore-based, at least 3 strategic business functions in Singapore and maximum group turnover is $500 million ($300 million) for trading (non-trading) company.
For LIS, 50% of premium is payable
For LIS +, 1.5% p.a. of premium is payable

IE (International Enterprise) Singapore

Internationalisation Finance (IF) Scheme

Company’s size: for trading (non-trading) company’s maximum group turnover is $500 million ($300 million)
Maximum loan of $15 million
Asset-based financing: up to 90% loan quantum. Maximum loan duration of up to 15 years (Land/Factories/Buildings) and 6 years (Other fixed assets)
For raising working capital for secured overseas projects/confirmed overseas sales orders
Structured loan: loan duration and quantum up to 3 years and 90% respectively
Banker’s guarantee: loan duration and quantum up to 5 years and 100% respectively

Trade Credit Insurance Scheme (TCIS)

Singapore-based exporter
LIS insures your goods against non-payment from buyers. Insurance premiums co-shared between the government and your firm
Singapore-based, at least 3 strategic business functions in Singapore, maximum group turnover is $100 million, at least $50,000 paid-up capital, annual total business spending of at least S$250,000 over the past three years and at least three managerial staff who are Singapore citizens or PRs
50% co-sharing of insurance premiums between the Government (with a cap of $100,000) and your firm

Alternative Avenues

Still short of funding after applying for all the eligible loans? Try getting funding from business angels or venture capitalists through Dealflow Connection.

Established by Spring Singapore in 2007, Dealflow Connection (and now managed by DP Information Group) matches SMEs with individuals or entities that have funds to offer, such as business angels or venture capitalists.

Starting and Growing Business With CNC Roll Forming Machine Financing and Leasing

The discovery of metal has been one the most decisive changes in the human history. Since that time, man has had the power to create powerful tools, structures and machines that would forever change the face of the earth. The tools for forming and manipulating metal have also advanced over the ages.

The modern society now depends on metal for everyday life, be it in the form of automobiles or the kitchen knife, metal is everywhere. This has made metal so important that the work of metal forming is also becoming quite popular.

Of the various types of metal forming, Roll forming is one very useful method. Do note here that the single word ‘rollform’ has the same meaning as the two separate words ‘roll form’. So these two words are used interchangeably. Here’s some more info:

o Roll forming is a common and useful method for forming objects from sheet metal.

o Roll forming is a very precise process and a special type of machine is used to roll form metal.

o These roll forming machines have several rolls that are placed one after another and they are divided into sets called ‘stands’.

o Each stand bends the metal only a little. So the metal can be passed multiple stands to reach the desired curvature.

o Roll forming is ideal for making parts, which are very long.

o Roll forming machines bend the metal into predetermined shapes. The shape would be a desired cross-section profile, meaning it will look like it was cut out from a complete shape like a cylinder for example. The cross-section profile is simply what the required end result of the bending is.

o Every shape needs its own unique set of rollers. That means that one roll forming machine can only make one shape.

Even though it might sound like it is not a very useful machine, you have to keep in mind that these machines are meant for industrial use. And factories need to make the same thing over and over again, in huge numbers. Like an automobile factory or aluminum can making facility.

So these places would not need to change the type of bend once the machine is installed. Each roller is carefully crafted for helping to form a specific shape and industries get their rollers customized before the machine is installed.

The CNC Roll forming machine has the advantage of automating the entire process, giving you a smooth bending process without breaking the metal.

Avoiding breakage is a major concern for many factories and the CNC roll forming machine delivers stellar results in this regard. So it is a necessary piece of equipment but it often costs quite high. But life can be made easier by availing CNC roll forming machine financing. It is for those businesses, which require the machine urgently but are unable to make such a large investment in one go. Of course, it is easy to understand because most start ups would be running short of capital.

You can avoid the hefty down payments and take some time to pay the full amount. Contact a company that is experienced in manufacturing equipment leasing for CNC roll forming machine financing.