SME Equipment and Factory Loan: What is it All About?
To let the SME businesses grow, helping them purchase factory equipment’s and technology renovation, Enterprise Singapore has been providing the SME equipment and factory loan. This loan has been an influencing financial incentive regarding the Small and medium businesses in Singapore, and it has been of practical help in letting the businesses produce and thus, make profits up to their full potential. A loan program every small and medium enterprise should know about, let us see everything that you need to know about this loan scheme.
The SME equipment and factory loan is a scheme introduced by Enterprise Singapore, which helps the growing SMEs in Singapore with a loan fund of up to S$15 million, with a sole purpose of the infrastructural development of the business. The small to medium enterprises may use this loan to help build their factory, equipment’s, JTC corporation or Housing and Development Board factory and even business premises. Depending on the type of loan, the repayment period is up to 8 (for equipment loans) to 10 years (for factory loans). The interest rate is per annum and will vary among different businesses, depending on many factors.
Eligibility
To be eligible for the SME equipment and factory loan, a business corporation should meet the following criteria’s:
– The business should be incorporated and currently operating in Singapore.
– The company should have a minimum of 30% of the local shareholding.
– The annual group sales cannot exceed S$100m, and there should be no more than 200 employees.
If you don’t comply with any one of these requirements, you are not eligible for the scheme.
Requirements
The first thing you need to make sure is that you are totally eligible for the loan. And then, you will need to prepare some documents to ensure this, which will include:
- A business profile from the Accounting and Corporate Regulatory Authority (ACRA).
- Bank statement and all other financial reports assessing the finances of your enterprise.
- Personal tax report of both, the owners and the members of the board of directors.
- Other documents or certifications, required as per the financial institution you will be working with.
After you have all these statements, then you could proceed and fil the application.
The Application Process
Here are the steps for you to fill the application form of the loan scheme.
First off, download the application form from this link.
If your computer doesn’t open the file, then you will need to download Adobe Reader. You could do it for free.
For application filling instructions and more help, you could download and open the guide from this link.
After you have the application filled in and every required documentation, you could approach any one of these partners financial institutions and submit your application form along with other paper works.
Partner Financial Institutions
| Institution | Contact Number |
| DBS Bank Limited | 1800 222 2200 |
| Ethoz Capital Limited | 6654 7799 |
| Hong Leong Finance Limited | 1800 3388 338 |
| IFS Capital Limited | 6270 7711 |
| Malayan Banking Berhad | 1800 777 0022 |
| ORIX Leasing Singapore Limited | 6339 3622 |
| Oversea-Chinese Banking Corporation Limited | 6538 1111 |
| RHB Bank Berhad | 1800 323 0100 |
| Sing Investments & Finance Limited | 6305 0300 |
| Singapora Finance Limited | 6880 0688 |
| United Overseas Bank Limited | 1800 2266 121 |
Response Time
Generally, it could take up to 3 weeks to process an application. You will get your funds as soon as your application has been approved. The repayment time starts a month after you get your loan.
I hope this article helped you with all your questions about an SME Equipment And Factory Loan. And if did, we are sincerely happy and express warm wishes for your business.
