Awaken Your Business’ Potential with an SME Venture Loan
Among the loans that the Enterprise Singapore has been providing to help the small to medium-sized enterprises with their cash flow, the SME venture loan is one. This is a loan program directed to the rapidly growing small to medium businesses which have seen considerable growth in a short period and due to which, they could get an opportunity to be bigger and accelerate the expansion even more. The SME venture loan has helped a lot of businesses in Singapore already, and if you are willing, then you could also use it as a stepping stone to take off and help your business reach bigger heights.
What is the SME Venture Loan?
The SME venture loan is a loan program granted by the Enterprise Singapore, which provides the businesses in Singapore with financing up to S $5 million. Also, 50% of the risk of the loan defaults is shared by Enterprise Singapore with the financial institution in the case of company insolvency. This is a loan granted to the enterprises for the task of everyday schedules, project financing, Asset Financing, and Mergers and Acquisitions. Also, warrants are mandatory for a company to qualify for this loan and the debt granting institution could claim the rights to purchase equity. This is expected to make a significant mean of alternative financing to the ever-growing SME businesses in Singapore and bring an innovative change in the market.
Requirements
To be eligible for the loan, here are the conditions that a company must fulfill:
- The company should be operating in Singapore.
- There should be a 30% of local shareholding at a minimum.
- The annual group sales can’t more than S$100 million, and the maximum number of employees is 200.
If your enterprise relates to the following terms, then you could move on to another part, that is applying for the loan.
Applying For The SME Venture Loan
Before applying for the SME venture loan, here are the things that you will need to gather.
- A company business profile from the Accounting and Corporate Regulatory Authority (ACRA).
- Proven Bank statements that clearly state the financial position of your enterprise.
- Income tax assessments of both, the owner(s) and the director(s).
- Other documents, as required by the financial house.
Application
To get your hands on the application, first, you will have to approach a partner bank with all the required documents. In the table is a list of the financial institutions in Singapore you could contact for an SME venture loan.
| Financial Institution | Contact Number |
| DBS Bank Limited | 1800 222 2200 |
| Oversea-Chinese Banking Corporation Limited | 6538 1111 |
| United Overseas Bank Limited | 1800 2266 121 |
| Innoven capital | 6532 2416 |
After doing so, you will receive the application. Depending on the analysis and the paper works the banks do, you could expect to hear back within three weeks.
You will receive the needed funds shortly after and the repayment time will start the month after you receive the loan.
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