Financing Solutions For Aspiring Business Owners

Whether you’ve been in business one week or five years, an infusion of money is always welcome. But what type of financing solution is best for your business? There are so many factors to consider – from the stage of your business to how much it’ll cost to get the money you need; just choosing a path to raise money can be overwhelming.

Here at ETHOZ, we provide a spectrum of equipment leasing and capital financing solutions, individually customised to suit our customers’ unique needs and requirements.  Our line-up of products and services are designed to help business owners improve cash flow flexibility, enhance financial budgeting and seize expansion opportunities.

 

1. Equipment Leasing

Enjoy all the profit-generating benefits and convenience of having your own equipment without the headaches of asset-ownership and depreciation.

 

2. Hire Purchase

With Hire Purchase, you can now spread out your payment over time to reduce your upfront costs while you enjoy the use and ownership of the asset.

 

3. Term Loans

ETHOZ Capital provides you an easy access to additional funds at competitive interest rates so that you can fully focus on growing your business.

  • Working Capital Loans
  • Debenture Loans
  • Shipping Loans
  • Renovation Loans
  • Property Mortgage Loans
  • IT loans (It is 0% interest here in ETHOZ).

 

4. SME Micro Loan Micro Loan Programme (MLP))

SME Micro Loan, previously known as MLP is targeted at small businesses with 10 or less employees that requires working capital to fund operations, or for automation and upgrading of factory and equipment.

 

SME Micro Loan at a Glance:
  • Maximum Loan Quantum: S$100,000
  • Interest Rate (subject to participating financial institutions’ assessments of risks involved):
    • Minimum 5.50% interest rate for loan tenure of 4 years and below.
  • Eligibility
    • Company registered and operating in Singapore
    • ≤ 10 employees or has annual sales ≤ S$1m
    • At least 30% local shareholding
    • Company’s group annual sales of ≤ S$100m or company’s group employment size ≤ 200*

 

* Annual sales turnover and employment size will be computed on a group basis.  (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).

 

5. Local Enterprise Finance Scheme (LEFS)

LEFS is administered by SPRING Singapore is a SPRING-initiated project to assist and encourage the growth of locally-owned SMEs.

 

LEFS at a Glance:
  • Maximum Loan Quantum: S$15m
  • Interest Rate (subject to participating financial institutions’ assessments of risks involved):
    • Minimum 4.25% interest rate for loan tenure of 4 years and below
    • Minimum 4.75% interest rate for loan tenure of more than 4 years
  • Eligibility
    • Company registered and operating in Singapore
    • 30% local shareholding
    • Group annual sales ≤ S$100m or group employment size ≤ 200 workers^

 

^ Annual sales turnover and employment size will be computed on a group basis. (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.

If you would like to find out more about how ETHOZ can assist you and your business, you can contact our friendly Relationship Managers at 6654 7799 or drop us an email at contactus@ethozgroup.com today!

 

 

Government Schemes Targeting SMEs in Singapore

Singapore is a pro-entrepreneur-friendly country, with a plethora of available government schemes especially targeting the local small and medium enterprise (SME) sector.

Here at ETHOZ, we have compiled an extensive list of such schemes below to help transform your business:

 

 

1. Innovation & Capability Voucher (ICV)

The Innovation & Capability Voucher (ICV) is a simple to apply, easy-to-use voucher valued at $5,000.

It encourages SMEs to take their first step towards capability development through consultancy projects or improving business efficiency and productivity through the adoption and implementation of simple solutions.

  • From 1 April 2018, the Innovation & Capability Voucher (ICV) will be streamlined under the Productivity Solutions Grant (PSG). PSG combines the existing grants under various agencies, including the ICV Programme, Landscape Productivity Grant (LPG), and grant support under the SME Go Digital Programme. The streamlining of financial assistance schemes would ensure companies now have a centralised platform to access pre-scoped technology solutions that meet their business needs.

To find out more, click here.

 

 

2. Enhanced iSPRINT (Includes ICT for Productivity & Growth)

The Info-communications Development Authority of Singapore (IDA) had introduced the concept of pre-qualified infocomm packages supported under Increase SME Productivity with Infocomm Adoption & Transformation (iSPRINT) to simplify the grant application process. These packages help SMEs to start deploying IT into their operations quickly and easily.

SMEs can receive up to 70% grants for adopting infocomm technology.

With effect since August 2014, ICT for Productivity & Growth (IPG) has been incorporated into iSPRINT, giving SMEs enhanced and broadened coverage, with simplified application process.

To find out more, click here.

 

 

3. Productivity and Innovation Credit (PIC)

The Inland Revenue Authority of Singapore (IRAS) Productivity and Innovation Credit (PIC) scheme is to encourage businesses in Singapore improve their capabilities and enhance competitiveness.  This scheme supports qualifying activities that improve productivity and promote innovation.

Apply to get a 400% tax deduction or 60% cash payout on the investments in productivity and innovation activities, valid till 2018.

To find out more, click here.

 

 

4. Wage Credit Scheme (WCS)

The Wage Credit Scheme (WCS) aims to help businesses facing rising wage costs in a tight labour market.

The Government will co-fund 20% of the wage increases given to Singaporean employees earning a gross monthly wage of $4,000 and below. In addition, for wage increases given in 2015 which are sustained in 2016 and 2017 by the same employer, employers will continue to receive this 20% co-funding for 2016 and 2017.

To find out more, click here.

 

 

5. SME Enhanced Training Support

A programme by Workforce Singapore (WSG), formerly known as Singapore Workforce Development Agency (WDA), this enhanced funding is an initiative by the Singapore Government to encourage SMEs to send their employees for training. This was based on feedback from SMEs and industry associations who identified training and upgrading as a key area where they hoped to receive Government support.

To find out more, click here.

 

 

6. WorkPro (Employers)

WorkPro is a one-stop programme that helps employers adopt a progressive workplace that facilitates job redesign, improves work-life and age management practices, as well as  encourages employers  to recruit and retain back-to-work locals and mature workers to meet their manpower needs.

To find out more, click here.

 

 

7. Market Readiness Assistance Grant (MRA)

Designed by International Enterprise (IE) Singapore, the Market Readiness Assistance (MRA) grant is targeted at SMEs who are interested to venture overseas.  MRA helps to defray a portion of the costs for pre-determined professional services and overseas activities such as market assessment, set-up and promotion.

To find out more, click here.

 

 

8. Global Company Partnership (GCP)

In today’s increasingly volatile economy and competitive global marketplace, more companies are expanding into emerging markets with challenging business environments. IE Singapore helps partner companies – regardless of the company’s size or annual turnover – by providing comprehensive solutions for international success.

The GCP is an approach adopted by IE Singapore to groom companies to become competitive globally by providing relevant assistance in the areas of building internal capabilities, manpower development, gaining market access and financing.

To find out more, click here.

 

 

9. Double Tax Deduction (DTD)

By IE Singapore, DTD provides a 200% tax deduction on eligible expenses to support overseas market expansion and investment development activities.  SMEs can automatically claim DTD without prior approval from IE Singapore for these 4 areas of activities: overseas business development trips and missions; overseas investment study trips and missions; overseas trade fairs and local trade fairs approved by IE Singapore or Singapore Tourism Board (STB).

To find out more, click here.

 

 

10. SME Micro Loan 

The SME Micro Loan, formerly known as Micro Loan Programme provides loans of up to $100,000. This SME loan in Singapore is specially designed for local SMEs with 10 or less employees or annual turnover below S$1m that requires working capital to fund operations, or for automation and upgrading of factory and equipment.

 

 

11. Local Enterprise Finance Scheme

The Local Enterprise Finance Scheme (LEFS) is a SPRING-initiated project to assist and encourage the growth of locally-owned SMEs by providing loans of up to S$15m to automate and upgrade factory and equipment, or to purchase factory and business premises, construction equipment and heavy vehicles.

To find out more, click here.

 

 

If you would like to find out more about how ETHOZ can assist you and your business, you can contact our friendly Relationship Managers at 6654 7799 or drop us an email at contactus@ethozgroup.com today!