How Businesses in Singapore Can Prepare for a Post Covid-19 Economy

With most coronavirus restrictions being lifted, businesses are in full swing to reopen and rebuild their operations. Singapore hopes to get its economy back on track after experiencing a  technical recession last quarter due to insufficient external demand and stringent COVID-19 “Circuit Breaker” measures.

Since late 2019, COVID-19 has infected over 4 million people around the world, wiped out hundreds of thousands of lives and crippled global supply chains. In a matter of weeks, industries such as manufacturing, tourism, aviation and many more were adversely hit by the drop in demand as a result of workplace closures and COVID-19 restrictions.

In order to stay relevant in a post-COVID-world, companies must reconsider their current operations and revamp their business models instead of going back to ‘business as usual’. From financing options to operational adjustments, here’s how businesses in Singapore can prepare for a post-COVID-19 economy.

 

 

1. Leverage on Support Programmes

The government and many organisations have rolled out various financing measures and programmes in Singapore with the aim of helping businesses better respond to the pandemic. For instance, at ETHOZ, as part of our Temporary Bridging Loan Programme (TBLP), we’ve collaborated with Enterprise Singapore to give companies access to working capital for their business needs.

Under the TBLP, qualified corporations can receive a loan of up to $5 million with the interest rate capped at 5% per annum. This would mean that businesses will have sufficient funds to invest in inventories, equipment, training programmes and satisfy day-to-day operational costs. To learn more about this, visit Enterprise Singapore website to find out more about the Temporary Bridging Loan Programme (TBLP).

 

 

2. Telecommuting is The New Normal

Many have predicted that telecommuting will last beyond the pandemic, and there are a few reasons why. Research has shown that employees are more positive and productive when telecommuting and working remotely as compared to working from traditional office spaces. Not only does it offer flexibility to employees, but it also reduces commuting time.

However, working from home can be a double-edged sword, given that there are possibilities of cyber threats as cybercriminals know that when more people are communicating online, it’s easier to deceive people to gain access to their private and confidential information. 

To fight cybercrime, businesses should conduct frequent updates, ensuring that operating systems and browsers are up to date with the latest cyber security software. Also, it is necessary to install firmware updates on hardware such as printers to prevent falling for the latest threats. We also strongly encourage businesses to educate and train employees on  the company security policies and how to spot phishing scams.

 

 

3. Put People First

According to COVID-19 Consumer Research, more than 64% of the workforce around the world is experiencing a great sense of fear and anxiety over their personal job security. Thus, companies should constantly seek feedback from employees and offer them a voice to share their concerns and worries.

Companies can consider leveraging on the government measures implemented to help businesses cope with COVID-19 such as sending their employees to government-funded in-house and SkillsFuture courses. These initiatives equip them with relevant knowledge and expertise that will help to enhance their skill set, and give employees a greater sense of confidence as they work through the current economic climate.

 

 

4. Sustaining Cash Flows

According to Harvard Business School, the average small business has sufficient cash reserves to last for only 27 days. Poor cash flows are one of the biggest killers of companies.

To ensure a steady stream of cash flows, the first step is to understand what your current cash flow position is and determine how long your company can operate under such conditions. Next, examine your cost structures and identify the activities and resources that are vital and the ones that are not mandatory in keeping your business running.

Monitoring your accounts receivable and getting your customers’ commitment to the payment date can give you a peace of mind that you’ll receive the payment on time. Other methods of generating revenue include selling unwanted assets to others and forming strategic collaborations with other firms to gain a larger pool of customers and increase sales for both firms.

 

 

Prepare for a Post COVID-19 Economy

While it is challenging to survive post-COVID 19 economy, strategies and actions need to be taken. We hope that this article has helped you generate ideas to prepare for a post-COVID-19 economy. Should you have any enquiries related to financing your business or the Temporary Bridging Programme, do not hesitate to drop us an email at contactus@ethozgroup.com contactus@ethozgroup.com!

 

 

A Beginner’s Guide to Fleet Management in Singapore

If you own businesses in the logistics, construction or food and beverage industries, commercial vehicles are likely to be a pivotal aspect of your daily operations, especially with home deliveries being on the rise in 2020.

However, managing your own fleet of vehicles is not that easy, as there are so many different responsibilities to take care of. Knowing the primary areas of fleet management can go a long way in helping you to handle operations effectively, ensuring safety and better productivity.

Thinking of leasing or buying a fleet? Then keep reading on to discover the 4 fundamental aspects of commercial fleet management.


1. Key Responsibilities

The key responsibilities of a fleet manager fall under five categories:

  • optimising operational costs
  • vehicle upkeep
  • managing drivers and employees
  • keeping everyone safe
  • maximising efficiency

To make sure that expenses are used wisely, one major aspect that fleet managers have to monitor is fuel usage. They also have to scrutinise the history of repairs and maintenance for every lorry and devise contingency plans for possible accidents and breakdowns. What’s more, fleet managers have come up with rules for safety and health and help to plot better driving routes. Fulfilling these responsibilities keeps the business running smoothly.


2. Considering Your Business Needs

When getting a fleet, it is important to consider the kind and amount of vehicles required by your business. For instance, smaller businesses such as florists only need a few lorries. However, bigger businesses that serve a large client base, let’s say a delivery company, may require larger fleets with vehicles that cater to specific factors such as temperature control, depending on the products dealt with.

After that, you need to decide whether to buy or rent the fleet. Making a purchase to acquire full vehicle ownership comes with a hefty price tag and incurs additional potential risks. Instead, we recommend renting commercial vehicles as it offers you increased flexibility and competitiveness.

At ETHOZ, we lease high-quality commercial vehicles of a wide range of configurations and customisations! For business owners looking to optimise their operations in Singapore, renting a fleet from us comes with numerous benefits. Our fleet management gives dedicated support to your fleets and relieves you of the challenges of monitoring the administrative costs and performance efficiency. Additionally, all commercial vehicles leased from us can depend on 24/7 roadside assistance and replacement vehicles when you need it. You also have the freedom of upgrading your vehicles to get the latest available models when you see fit.


3. Getting Drivers

Hiring and training your drivers is the next essential step. When doing so, there are multiple things to assess about their suitability for the role. You need to ensure that they possess a valid driver’s license for the correct vehicle type, be physically and mentally prepared to drive, possess some experience and have no criminal record.

Following that, sending your drivers for training workshops and classes is a great way to improve their skills and remind them of the factors to take note of whilst on the road. As they spend significantly more time driving than people with other occupations, the re-emphasis on safety and knowledge of the latest industry standards will greatly help not only them but also your business. This is because their performance reflects well on the professionalism of the company.


4. Ensuring Safety

Ensuring high standards of safety and risk management is another vital aspect to take into account. Thousands of people are victims of road accidents from distracted driving every year and you do not want anyone in your company to encounter the same fate! On top of the aforementioned training programmes, teaching employees about first aid and the usage of emergency tools will also go a long way.

To further enhance the safety of your employees, you may want to set up company rules such as wearing seatbelts all the time, avoid tailgating and outline specific steps for them to take if their vehicle breaks down.


Managing Your Commercial Fleet

Managing a commercial fleet is definitely challenging, but if you choose the option to rent, car rental companies have experienced fleet management teams to take some of these responsibilities off your hands. At ETHOZ, our professional relationship managers are here to help fulfil every car rental need! We understand that transportation services are important and are more than willing to guide you through the different considerations when it comes to renting and managing commercial fleets.

Long-term vs Short-term Car Rental: Which One is Best for You?

Public transport in Singapore is efficient and convenient and all, but there are times when you’d rather not deal with it. On the other hand, owning a car in Singapore is extremely costly but it provides flexibility and comfort. So how do you get the best of both worlds? The answer is simple, rent a car!

There are many cheap car rentals in Singapore which are becoming increasingly popular due to their affordability as well as convenience, especially as we enter into a post-COVID-19 society. But for those who are unfamiliar with car rentals in Singapore, having to decide between short-term car rental and long-term car rental can be perplexing.

To help you make a better choice between the two, we’ve compiled a list of benefits for both long-term and short-term car rentals so you can easily weigh your options!

 

What’s Your Purpose of Renting a Car?

Before deciding between a short-term and long-term car rental, ask yourself your purpose behind renting a car. If you need a car for a special occasion or just to carry out an ad-hoc task, then we suggest that you take up a short-term car rental. However, if you foresee yourself using the car on a regular basis but do not want to buy one, then a long-term car rental option will work best for you.

If you’re having trouble deciding between the rental packages, our team of professionals at ETHOZ are more than willing to help you assess your needs and advise you the car rental package that best suits your lifestyle!

 

Pros of Long-Term Car Rental

Save Time on Car Repair and Maintenance

One of the great things about long-term car rental is that you do not have to worry about regular maintenance and servicing of the car. Just leave it to the experts who will be handing your rented car to you. This is especially useful for expats who may be new to Singapore, and need that extra assistance in these areas!

At ETHOZ, we believed in providing you with assistance whenever and wherever you need. Just drop us a call to inform us the time and location to have your car picked up and we will take care of the rest hassle-free. In the event of a breakdown or an accident, a free replacement car can be provided to ensure that you will never be inconvenienced.

 

The Cost-Effective Option

Contrary to popular belief, long-term car rental can actually be more cost-effective than the short-term alternative. If you were to break down the daily expenses incurred for renting a car in long-term as compared to short-term, you’ll realise that the prior is more affordable and worth it. If you need to travel frequently, why not just settle for a long-term car rental package instead of taking up multiple short-term car rental packages?

At ETHOZ, we offer monthly and yearly car rental packages which include an extensive range of cars at affordable prices — from economical hatchbacks to MPVs, SUVS to luxurious executive sedans. If you’re interested in long-term car rental packages, do not hesitate to drop us an email at contactus@ethozgroup.com.

 

Car Rental for Expats

As we mentioned earlier, if you’re an expat who will be working in Singapore for months or even years, purchasing a car here may not be an ideal choice, so why not rent a car instead? Having a car makes commuting to work or school, running errands, and going for excursions more convenient and less troublesome.

Most importantly, you don’t need to tie yourself down if you’re unsure of the duration you’ll be living here. Since we offer monthly and yearly car rental packages, you’ll have the flexibility to select the rental duration that works best for you.

For locals who want the same amount of freedom and flexibility, rental is also an extremely cost-effective option as you get to enjoy low upfront payments, and enjoy the extra maintenance support it comes with as well.

 

Pros of Short-Term Car Rental

Greater Flexibility

With short-term car rental, you’ll be spared the tremendous costs associated with owning a car, while enabling you to still enjoy the benefits that come with driving whenever you need it. There are many occasions where a car can come in handy — Chinese New Year, Hari Raya, Deepavali, Christmas, birthdays, and the list goes on.

Whether you’ve friends visiting you from overseas or you’re travelling with your family during festive occasions, it would have been much more convenient and enjoyable travelling around if you’ve got a private vehicle.

Furthermore, ETHOZ Group offers a wide range of cars that are all comprehensively insured so you don’t have to get too anxious over it.

 

Greater Freedom of Choice

If you’re unsure of which car to get, then we suggest you opting for short-term car rental instead. Given that short-term car rental can be in the form of a weekend, weekday or weekly basis, you won’t have to worry about being tied down by the car especially if you’re not really fond of it.

Short-term car rental comparatively gives you greater freedom in exploring different car options and getting a feel of them to understand which caters to your needs and comfort the best. Once you’ve made a decision, you can switch over to long-term car rental with the car of your choice.

 

Rent a Car with ETHOZ

We hope that the article provides you with a deeper understanding of the differences between long-term and short-term car rentals. ETHOZ offers a wide range of vehicles to cater to every need — from economical hatchbacks to MPVs, SUVs to executive sedans.

Additionally, ETHOZ provides 24/7 roadside assistance to affirm our customers that we’re always ready to help them, whenever and wherever they are. Do not hesitate to reach out to our qualified team of experts by dropping us an email at contactus@ethozgroup.com to learn more about the car rental packages that we offer!

How Leasing & Hire Purchase Can Improve Your Business Operations in 2020

Many companies in Singapore are struggling to find the capital to purchase equipment necessary for their business operations to continue functioning at optimal capacity, especially with the global economy in its early stages of recovery due to the coronavirus.

An increasing number of businesses in Singapore are turning to alternative methods such as equipment leasing or hire purchase. In essence, these methods help businesses acquire equipment that would normally be too expensive to buy with cash. In this article, we will be covering some of the ways an equipment leasing and hire purchase can help you finance your business and ride out this rough economic patch.

 

 

The Difference Between Equipment Leasing and Hire Purchase

Both equipment leasing and hire purchase are great ways to finance your business’ need for new or improved equipment. Opting for either one has its own major benefits but what’s the main difference?

Essentially, leasing allows you to rent an asset for a specific period of time for an agreed fee. At the end of your lease agreement, you will have to return the equipment to your rental company in its original condition or risk paying extra fees.

Alternatively, hire purchase allows you to purchase and use expensive pieces of equipment without incurring a major outflow of cash. You will have to make an initial down payment, followed by monthly payments for a fixed time period. After all the repayments are made at the end of the period, you will have the option to own this asset.

Now that you know the difference between the two options, let’s explore how you can use these methods to improve your business operations.

 

 

Buy New Equipment or Repair Existing Equipment

Even if your business is well-established, you may not wish to spend a large portion of your revenue on equipment as preserving working-capital is vital in paying off short term expenses and debts.

Depending on the specific needs of your business, having money on-hand can significantly improve your company’s level of productivity, whether you have faulty equipment at hand that needs repairing, or a need to upgrade your equipment to expand your business. The purchase of new equipment can be helpful for your business if it improves processes and increases competitiveness in your industry by meeting consumer demands.

Conversely, if a piece of equipment that’s crucial to your daily operations needs repairing, opting for leasing alternatives can also be exceptionally helpful in reducing downtime, and any related financial losses from the equipment breakdown for the time being.

At ETHOZ, we have your best interests at heart. Aiming to preserve your cash flow and improve your business, we provide equipment leasing and hire purchase at affordable rates that are easy to obtain. That way, you can finance your purchases with low or no downpayment, freeing you to focus on growing your business and using your working capital for other pressing needs.

 

 

Invest in Small Pieces of Technology

With the right financing, you will have the ability to invest in equipment that will not only increase the level of efficiency in your business but create better customer experiences, which will aid in forging better relationships with your customers and employees.

Instead of financing major operational upgrades, you may want to consider investing in smaller pieces of technology that will have an impact on customer satisfaction, which will ultimately improve business performance.

For example, if you own a business in the F&B industry, you could invest in tablets to provide customers with a more efficient method of ordering, and at the same time ease the workload of your employees. The tablets can also be used as an effective way to get customers to leave feedback or reviews, which will be a great avenue for you to develop some ideas on how you can improve your business to establish brand loyalty and generate greater revenue in the future.

 

 

Go Green: Utilise Energy-Efficient Equipment and Appliances

Having an environmentally-friendly business can be an effective method to save costs in the long-run, ultimately allowing you to run a cost-effective business.

There are a few easy ways to go green when you look into leasing or hire purchase of your new equipment. You can invest in energy-efficient equipment and appliances such as air-conditioning facilities which will help save money on energy costs.

Another way to save on electrical bills is to install energy-saving features like motion sensors around your workplace which will detect when people are present, managing the use of electrical appliances at your place of business without you having to worry about wastage. If your place of work is an office, you may also consider switching to laptop computers as they are generally more efficient and use 80% less energy than desktop computers.

Moreover, owning a green business also comes with attractive tax incentives. If you’re interested in finding out more about how you can use equipment leasing or hire purchase to invest in energy-saving equipment at your workplace, feel free to consult our professional relationship managers at ETHOZ. With the right plan, we can help you make a lasting impact on your business using equipment financing.

 

 

Finance Your Business in Singapore

If you’re short on funds but in need of new machinery and equipment, ETHOZ provides the solution to all your equipment financing needs. Ease your mind and finances with us as we provide you with attractive equipment leasing and hire purchase packages that will help you take your business further.

Our professional relationship managers that are ready to take your call are also well-qualified and trained to make the process as hassle-free and convenient for you. Contact our team at 66547799 or drop us an email at contactus@ethozgroup.com today!

 

 

An Entrepreneur’s Guide to Funding Your Local Business

Over the years, there has been an increasing number of new businesses being set up in Singapore. Reports show that at least 7% of Singapore’s population engages in entrepreneurial activity and at least 1 out of every 100 Singaporeans run their own business. But with all the benefits of being your own boss, there are still some challenges that need to be carefully navigated when setting up your own business.

One of the biggest entrepreneurial challenges is finding adequate financing to execute business plans and run operations in the market, especially given the current economic downturn due to the coronavirus pandemic. Many small businesses casualties are seeking financial help or relief to prepare for what lies ahead.

Thus, whether you’re a businessman looking to turn your entrepreneurial plans into a reality or an owner of a startup looking to raise capital, we’ve put together a list of funding options that are available in Singapore.

 

 

1. Taking a Bank Loan

Taking out a bank loan is a reliable method to finance your small business. However, bank loans are often tough to qualify for as banks are more inclined to finance firms with either a long and credible track record or substantial private assets as collateral. Banks also approve loans based on this financial information and therefore, loan quantum can be low, leading to insufficient funds to operate.

Another important thing to note is, though you get to maintain full management and control over your company as the bank will not get involved in any aspect of which you run your business, the interest rates for small-business loans from banks can be high, ultimately stunting your company’s business growth. If you also see yourself needing funds more urgently, be mindful that banks take a longer time to approve loans and disburse funds. Therefore, it’s important for small business owners to weigh the advantages and disadvantages of bank loans against their financial capabilities.

 

 

2. Taking a Term Loan

Businesses may find it hard to innovate and keep up with evolving market trends as well as customer and resource demands. In order to survive, small businesses especially, need to innovate and adapt. To do this, you will require financial means to support the changes and improvisations you decide to make.

At ETHOZ, we provide business financing support in the form of various term loans for small businesses, SMEs and MNCs across many industries; allowing companies to grasp crucial opportunities and continue to grow during trying times.

From working capital loans and business term loans to shipping loans and renovation loans, we provide different term loans that cater to the specific needs of your business. We can finance anything from daily operational expenses, employee payrolls and the clearance of debt to the purchase of fixed assets such as inventory or equipment and even the refurbishment of offices or retail space. Apart from financial information, ETHOZ is also able to take into consideration your assets such as property as collateral ultimately providing you with a higher loan quantum, giving you more funds to operate your business.

As every business has different financial considerations, having a good understanding of the way your business works will help you make the right decision when it comes to funding. ETHOZ offers term loans that are priced competitively at affordable interest rates catered to your financial budget and business needs.

 

 

3. Self-funding

Self-funding refers to the use of your own financial resources such as capital from your personal savings account or credit cards to fund your business. This is generally considered a risky option because one misstep could mean the end of your startup and a major setback in your personal finances.

 

 

4. Crowdfunding

Alternatively, crowdfunding is an innovative system of business financing which consists of the collection of monetary contributions from large groups of people. There are popular crowd-funding platforms in Singapore such as Funding Societies and Kickstarter that look specifically into the financing of small business startups in Singapore.  Do be mindful, however, that the interest rate for crowdfunding is usually high.

 

 

5. COVID-19 Government Schemes For Local Businesses

In addition to the attractive government grants and funding schemes made available to startups in Singapore, enhanced measures and financing initiatives have been rolled out in 2020 to help businesses respond to the global economic disruption caused by the coronavirus pandemic.

Financial support measures from the government across various sectors has helped businesses address immediate needs while endeavouring to tackle and adapt to long-term effects from this economic setback. There are even Booster Packages aimed specifically at helping the E-Commerce and Food Delivery industries.

For companies that are looking for financing options in Singapore, a working capital loan is a good option, as loan limits have been raised due to COVID-19. At ETHOZ Capital, our Working Capital Loan schemes are designed to cater to SMEs with group revenue of up to $100 million or a maximum employee count of 200. This allows eligible companies, to apply for a loan amount of up to $1 million dollars.

If you’re looking for a financing option to help manage more urgent business needs, the Temporary Bridging Loan Programme (TBL) is another suitable option for you. Introduced along with the Budget 2020, the Temporary Bridging Loan Programme (TBL) is a government-assisted financing scheme made available to SMEs across all industries in Singapore to provide working capital to fund business needs even the current economic climate.

As a participating PFI, our relationship managers at ETHOZ Capital can provide you with the details needed regarding eligibility, loan terms and so on to ensure your application for a TBL may get approved with ease.

 

 

Finding Opportunities for Business Funding in Singapore

With most small businesses, navigating financial challenges to raise capital is not easy and a lot goes into working towards and achieving one’s business goals. As mentioned above, having a deep understanding of your business will be the first step in figuring out the type of financial solution you require. However, in some cases, the solution may not be straightforward and if you require some assistance, our experienced relationship managers can help you out with this. Simply give our team at ETHOZ a call at 6654 7799 or drop us an email at contactus@ethozgroup.com today!

 

 

How Do Fluctuating COE Prices Affect My Commercial Vehicle

Singapore is a heavily urbanised and highly populated but small island-city state, making it one of the most expensive countries in the world to own a vehicle. For businesses, this expense only gets greater as a fleet of commercial vehicles is usually required for operations to run smoothly, compounding this cost greatly.

So whether you’re a business owner, manufacturer, or delivery service provider, you should make sure that you at least have a general understanding of the COE and what it means for your operational costs.


What is a Certificate of Entitlement (COE)?

In Singapore, it is necessary to obtain a COE in order to register for a vehicle, be it private or commercial, for a period of up to 10 years, giving you the right to own and operate it.

If your commercial vehicle is still in good condition at the end of its first 10 years, you may either decide to renew your COE for another 5 years or 10 years or invest in a brand new commercial vehicle. Some companies may choose to renew while others may opt to purchase brand new vehicles, depending on the circumstances, for instance, if the prevailing price is attractive.

COEs are divided into various categories depending on the type and engine capacity of a vehicle. As there are only a limited number of COEs available at any point in time, the price is dependent on market demand. Higher demand will result in a surge in prices. Buyers have to bid for COEs in the appropriate categories depending on what type of vehicle they wish to purchase. Thus, not everyone who wants a COE is guaranteed to get one.


Latest Update on Certificate of Entitlement (COE) Prices for Commercial Vehicles

Due to the coronavirus pandemic which resulted in Singapore’s economy taking a hit, the latest updates in 2020 reflect a fall in COE prices for all vehicle types except motorcycles.

The COE quota premium for commercial vehicles has experienced a sharp decline since the onset of the virus from as high as $25,001 in early January to $22,002 in March. However, this does not necessarily mean that businesses should immediately start bidding for a commercial vehicle–here’s why.


Should I Purchase or Lease a Commercial Vehicle?

Due to the recent drop in COE prices for commercial vehicles, some businesses may be considering a purchase. However, with the impact of the COVID-19 pandemic on the global economy, market conditions in the near future are uncertain. Thus, purchasing a commercial vehicle may not be the wisest decision as it ties you down to a hefty financial commitment of a minimum of 10 years ownership.

The cost-effective alternative to purchasing commercial vehicles for your business would be leasing, which allows you access to a commercial vehicle with the following benefits:


Financial

Leasing a commercial vehicle allows you to avoid having to pay a hefty downpayment that comes with a purchase. The low upfront cost of leasing a commercial vehicle allows businesses to free up capital for other areas of business priority. Here at ETHOZ, we provide a commercial vehicle leasing package that will cover all maintenance expenditures and bear the expenses of asset depreciation and potential vehicle disposal loss, helping you save on extra expenses.


Operational

Commercial vehicle rental also gives you much more operational flexibility. Unlike a purchase, a leasing arrangement does not tie you down to one commercial vehicle. You have the option to renew, upgrade, or upsize your fleet according to your business needs. Furthermore, ETHOZ not only conducts regular maintenance for all its commercial vehicles to ensure smooth operations but fleet management too, freeing up your manpower for labour efficiency.

In addition to the financial and operational benefits stated above, our commercial vehicle leasing package also includes the following:


  • Motor Insurance
  • Road Tax
  • LTA Inspection
  • Unlimited Mileage
  • 24-hour breakdown support
  • Maintenance & Servicing
  • Replacement Vehicle


Leasing of Commercial Vehicles

Commercial vehicle rentals are becoming an increasingly popular option for small businesses and a wide spectrum of MNCs and SMEs from different industries. Our commercial vehicle offering includes van, truck and lorry rental. We are also able to tailor vehicle customisations and configurations to the needs of your business.

If you are looking lease a commercial vehicle in Singapore, our professional relationship managers at ETHOZ will work closely with you to help you decide on what would best meet your business needs. To find out more about the benefits of commercial vehicle leasing, simply give our team at ETHOZ a call at 66547773 or drop us an email at contactus@ethozgroup.com today!

4 Ways Renting a Car in Singapore Can Help You Save Money This Year

In this time of social distancing, it is advisable to avoid crowds and public transport in order to minimise exposure and worries. However, taking taxis or private hire vehicles may not be financially feasible for every grocery and food takeaway run you have to do either. In such a situation, having a vehicle at your disposal would be the most ideal and convenient.

Having said that, car ownership, on top of being expensive and a big commitment comes with its fair share of concerns and hassles. Renting a car can help you sidestep and avoid many of the concerns that come with buying a car, so keep reading to discover how car rental in Singapore can help you save money this year!


1) Renting has a significantly cheaper initial cost

As we all know, when you buy a car in Singapore, you have to contend with the Certificate of Entitlement (COE) system. The COE amounts to a sizable portion of the cost of the car and, in recent times, runs up to tens of thousands of dollars.

On top of this, car dealerships will also include in their margin in the sale price which allows them to turn a profit. These add to the daunting total cost of buying a car, which results in a large downpayment that you have to put down to secure a car (up to 40% of the purchase price).

For the remainder of the purchase price, many often take out a bank loan on which you would have to pay the interest rate (up to 3%). Comparatively, for car rentals in Singapore, you simply have to put down 1-2 months of the rental amount without having to worry about loans and interest rates.


2) Car rental in Singapore is hassle-free!

Another common saying I’m sure we’ve all heard in Singapore regarding car ownership is that a car is a liability, rather than an asset. When you’re shopping for a car there are many things to consider, some with their own confusing acronym: OMV (open market value), ARF (additional registration fee), COE (certificate of entitlement), GST, excise duty, road tax, insurance, and depreciation value. Not only do these all add up and cost you more money in both the short and long term, but they can also be a hassle to you as you seek to get the best value and bang for your buck.

At ETHOZ, all you have to consider when you want to rent a car are your needs and your budget, and we can find the best possible fit for you. With car rental, there is also no need for a long wait — you can even drive off with a car as soon as the day itself after signing the rental agreement.


3) After-sales support

While cars are becoming more and more reliable as technology advances, we shouldn’t take for granted the fact that breakdowns, or worse, accidents, can still happen. In such an unfortunate situation, you can call ETHOZ’s 24/7 call centre which will provide a solution for you at no extra cost.

Additionally, ETHOZ has offices located conveniently in the west and east of Singapore, at Bukit Batok and Tampines respectively, for you to report any accidents. There, our team will help you with the paperwork for insurance claims and also arrange for repairs for the car.

These will all be covered under the insurance package that comes with our rental agreements, so you will only have to pay at most a minimal excess which covers repair works of the rental car as well as third party claim if any. While the car is gone for repairs, servicing or maintenance, a replacement car will also be provided for you so you will not have to worry about spending additional money to rent temporary transport!


4) Wide variety and flexibility of rental arrangements to suit your needs

Whether you are looking for a long-term option or short-term spin, ETHOZ has the solution for you. From one weekend to multi-year rental agreements, you are sure to find the right car and arrangement that best suits your individual needs and situation.

We can offer you the comfort and convenience of a car for your desired amount of time, without the actual commitment and associated costs of owning a car for 10 years (for the commitment-phobic people out there, this must be music to your ears!). Furthermore, for those looking for a longer-term car rental solution, signing a new agreement at the end of every contract term also allows you to ‘change to a new car’ every 2-3 years!


Affordable Transport Options in Singapore

Although it is not often thought about as a viable alternative to owning a car, car rental in Singapore is straightforward and hassle-free, covering everything you would need and allowing you to drive a car away basically instantly. Should any issues arise on the road you can also call the 24/7 ETHOZ hotline, especially in inconvenient situations like breakdowns and accidents. There will also be no disruption and major inconveniences, as a replacement car will be provided to you while the car is undergoing servicing and repairs. For the car rental arrangement that best suits your needs, you can reach our team at ETHOZ at 6654 7788, or via email at contactus@ethozgroup.com and we will make sure to match you with your car!

A Guide to Applying for SME Capital Loans in Singapore

There’s no denying that many people dream of being their own boss, which explains the rise of entrepreneurs in Singapore. With an increasing number of people chasing their dreams to build their own businesses, it also brings about the realisation that the road to success is fraught with several challenges.

It is essential for businesses to have reliable sources of funding to ensure that operations can run smoothly on a daily basis. While running a business comes with inevitable risks, being well prepared for such risks can minimise the potential problems caused by a shortage of funding. Many businesses only consider taking up a capital loan when they find themselves cash-strapped. However, understanding capital loans and investing in them early on can allow you to seize crucial business opportunities knowing your finances are in order. For those who’re wondering how to go about applying for a working capital loan, check out our useful guide on everything you need to know about your financing options!

 

 

Why You Need A Capital Loan

Whether you’re just starting up your business or you’re looking to expand, having enough working capital to finance your daily operations is important to cover expenses and keep your business going. A capital loan is basically a loan you can obtain from a bank or from other institutionalised lenders to finance costs such as wages, rent and debt payments — especially when your business is under financial stress.

Many companies do not have a steady stream of income throughout the year which can be attributed to a multitude of reasons. For instance, businesses in the manufacturing industries often experience cyclical sales which results in periods where business enters a lull period. In order to continue covering the daily operational expenses, a capital loan will help you overcome such periods, and the loan can be repaid when business picks up.

 

 

When You Should Apply For SME Capital Loans

When it comes to running a successful business, one of the keys to managing your finances is to have a plan that takes into account any potential cash flow issues that may arise in the future. As every business has different functionalities, understanding the nature of your business will help you formulate a plan most suited to your business needs. This will allow you to start initiating loan applications when your company is financially stable.

Unfortunately, many companies only seek funding help when they face financial difficulties. As capital loans are based on your repayment ability, there is a chance that capital loans can be declined by lenders at the time you may need it most. Hence it is always advisable to seek these financing options when your company is in its best financial shape.

 

 

Where To Apply For SME Capital Loans

There are several options when it comes to choosing where you want to get your capital loan or term loan in Singapore.  SME capital loans in Singapore are usually offered by banks, financial institutions or alternative lenders.

Banks in Singapore provide various SME capital loan options, however, obtaining approval can be a tedious process for many SMEs. Another option SMEs can look at would be financial institutions that usually function as specialised lenders and have loans suitable for asset-based lending such as equipment loans.

ETHOZ Capital is a participating financial institution for the Enterprise Financing Scheme (EFS) under Enterprise Singapore. The aim of this partnership is to offer SMEs a variety of loans such as the Working Capital Loan, SME Fixed Asset Loan and the Temporary Bridging Loan.

 

 

Types of SME Capital Loans

 

Working Capital Loans

For SMEs that are looking for a source of funding to finance your daily operations, a working capital loan is the most suitable option. At ETHOZ Capital, the working capital loan scheme is targeted at SMEs that have a group revenue of up to $100 million or a maximum employee count of 200. For companies that are eligible, you can apply for a loan amount of up to $1 million dollars.

 

SME Fixed Assets Loan

If you’re looking for a loan to finance the investment of domestic or overseas fixed assets, the SME Fixed Assets Loan will be a suitable option for you. The SME Fixed Assets Loan can be used for the purchase of equipment for upgrading purposes as well as construction or purchase of government and commercial built premises for your business. If you are eligible for this loan, you can secure up to $30 million dollars.

 

Temporary Bridging Loan

The Temporary Bridging Loan Programme (TBLP) provides access to additional working capital for SMEs to fund their business needs. Under this scheme, eligible companies can secure a loan amount up to the $5 million dollars with an interest rate capped at 5%. To help manage debt and control cash flow, companies can also apply up to 1-year deferral of principal repayment,  subject to assessment by the Participating Financial Institutions.

 

Working Capital Loan Singapore

Even with a variety of options to choose from, navigating your unique needs and challenges to identify a capital loan that best works for your business can be rather challenging. If you need some assistance in further understanding your options, our experienced relationship managers can help you out with this and recommend a financial solution, after considering your requirements. Simply give our team at ETHOZ a call at 6654 7799 or drop us an email at contactus@ethozgroup.com today!

What is a Temporary Bridging Loan & How Will it Help Local Businesses?

As the COVID-19 pandemic continues to curtail economic activity in many parts of the world, the falling external demand coupled with factors such as supply chain disruptions has led to an overall contraction of Singapore’s economy. This has caused many SMEs in Singapore to bear the brunt of the economic fallout especially with customers staying home, resulting in reduced spending globally.

With uncertain times ahead of us, many SMEs in Singapore will continue to face financial constraints when it comes to maintaining their cash flows and meeting their financial obligations. For companies that are reviewing their current cash flows and exploring financing options in Singapore, there are many measures introduced by the government to help businesses address their urgent financial concerns. If you’re looking for a financing option to help manage any urgent business needs, the Temporary Bridging Loan Programme (TBL) will be a suitable option for you. Keep reading to find out everything you need to know about this scheme.

 

 

The Temporary Bridging Loan Programme (TBL)

The Temporary Bridging Loan Programme (TBL) is a government-assisted financing scheme for SMEs in Singapore, introduced in Budget 2020. This scheme is available to all sectors and provides working capital to fund your business needs given the current economic climate in Singapore.

 

 

Eligibility

In order to be eligible for this scheme, you have to be a business entity registered and physically present in Singapore with at least 30% of equity held by Singaporeans or Permanent Residents residing in Singapore. Do note that the approval of the loan will be decided after an assessment by the Participating Financial Institutions (PFI) involved in the scheme.

 

 

Features

The Temporary Bridging Loan provides working capital funding of up to $5 million to help you with your business needs. The interest rate for this will be capped at 5% effective p.a., from the PFIs. Enterprise Singapore also provides a 90% risk-share on the loans for any new applications that are initiated from 8 April up till 31 March 2021.

SMEs can even apply to defer their principal repayments for up to 12 months to assist them in managing their debt. This deferral will also be subject to approval by the PFIs after further assessment.

 

 

How To Apply

Currently, there are 15 financial institutions that are participating in this scheme. However, the credit criteria and interest rates may differ for each of the PFIs, which is why it is crucial to select a suitable PFI to avoid rejection of your application for the loan. SMEs in Singapore can also approach different PFIs to apply for multiple loans, However, do note that eligible companies can only borrow up to $5 million dollars even if you decide to obtain multiple loans from different PFIs.

In order to apply for the temporary bridging loan, simply approach the PFIs that are listed in this scheme to discuss your options. ETHOZ Capital is one of the PFis involved in the TBL and our relationship managers can provide you with detailed information on the loan rates as well as the eligibility terms to ensure that your application gets approved as quickly as possible — allowing you to tackle any financial challenges you are currently facing due to the COVID-19 outbreak.

 

 

How Will TBL Help SMEs

As the global pandemic caused by the novel coronavirus rages on, it is essential for companies to act fast and consider their financing options in order to persevere and tackle the economic crisis head-on. With the slowing economy, it is important for companies to strategise and manage their working capital efficiently — especially vulnerable businesses who are running on low cash reserves.

TBL was introduced by the government in response to the COVID-19 outbreak to help local businesses manage their immediate cash flow concerns. In times of financial instability, this scheme allows SMEs to shift their business priorities to addressing cash flow challenges and liquidity instead of merely focusing on profits and losses.

As the world adjusts rapidly to adapt to changing times, it has become more important than ever for businesses to stay relevant and this will be difficult to achieve if the company is faced with unstable cash flows. TBL helps companies out with this by addressing their most urgent business needs so that they can focus on other aspects such as adapting and reinventing to bounce back from this crisis in the long run.

 

 

Financing In Singapore

As with most businesses in Singapore, navigating financial obstacles to keep your operations running smoothly is not easy — especially in a time like this where the whole world has been plagued by economic inactivity. TBL scheme is a great opportunity for companies who’re looking for financing options to keep their business afloat.

If you’re unsure about the eligibility criteria and require assistance, our experienced relationship managers at ETHOZ Capital can help you out with this and guide you on what needs to be done for your loan application to be approved quickly. Simply give our team at ETHOZ a call at 6654 7799 or drop us an email at contactus@ethozgroup.com today!

 

 

Hire Purchase or Leasing of Equipment in Singapore: The Pros & Cons You Should Know

Many companies in Singapore need access to expensive equipment in order for their businesses operations to run smoothly. However, purchasing equipment in Singapore can be a daunting, not to mention pricey affair. Other options include leasing the equipment you need or acquiring it through hire purchase-but what does that entail?

If you’re looking for a long-term and cost-effective solution for your business needs, leasing and hire purchase are some great alternatives to consider! While both provide you with long-term usage of essential equipment for your business, they have very different implications on your finances and needs. If you’re unsure which would work better for you, fret not! We’ve put together this comprehensive guide exploring what these options entail and the benefits that come with them.

 

What is Leasing & Hire Purchase?

Leasing is essentially a method of renting an asset over a specified period of time for a fee, just to help your business advance to the next level. At the end of the lease agreement, you will have to return the equipment back to the rental company in its original condition.

On the other hand, hire purchase allows the hirer to acquire and utilize highly-priced equipment on their terms. Usually, an initial down payment is required followed by monthly payments for the fixed period. After all repayment terms are fulfilled at the end of the rental period, the hirer has the option to own the asset.

 

 

Pros of Leasing

 

 

1. Greater freedom and flexibility 

Leasing an asset is especially useful when you’re not 100% sure that you will need it in the long-run. Moreover, leasing eliminates the risk of asset obsolescence, as you won’t have to worry about the equipment’s disposal at the end of its useful life. You have the flexibility to decide when you want to return it to the rental company (preferably when the equipment becomes unnecessary to your business operations), passing on the burden of obsolescence onto the lessor, freeing yourself to lease new, higher-end equipment.

 

 

2. Lower monthly payments with low or no downpayment

Equipment leasing is an efficient way for new, growing businesses to get hold of the tools they need. If you are the owner of a small business enterprise or an entrepreneur, you may not have the capital to purchase equipment. In that case, leasing is definitely the more cost-effective option as it allows you to acquire equipment with minimal initial expenditures.

We have professional relationship managers at ETHOZ that will analyse your specific equipment needs and budget to propose a customised equipment leasing programme which will allow you to make affordable monthly payments over time. This way, you get to save your working capital for business expenses and expansion, which would otherwise be used up making cash payments for your equipment.

 

 

3. Easier to upgrade your equipment

Leasing makes it easier to upgrade your equipment depending on the needs of your business and how you structure your lease. For example, if you need a piece of certain equipment at the moment, but know that a newer and better model will be released in 1 year, you may sign a leasing agreement for a one-year term. That way, you’ll be able to trade in your old model and upgrade it to the new one at the end of your lease.

 

 

Pros of Hire Purchase

 

1. Customised repayment amounts

Be it small-scale local enterprises, businesses, or entrepreneurs, you will be able to operate your asset from the onset and generate revenue while paying for the equipment on a regular instalment basis over a fixed repayment term, maximizing working capital. At ETHOZ, we offer a flexible frequency of instalment payment terms to make budgeting easier for you. The payment terms may be monthly, quarterly, half-yearly, or annually, as per the terms of the agreement. Each rental payment is considered as a charge for hiring the asset.

 

2. Ownership of the asset

Hire purchase ultimately differs from equipment leasing with respect to the choice of ultimate ownership of the asset. At ETHOZ, we promise a hassle-free customer experience in helping you achieve that if you wish!

With simple and efficient application procedures and fast approvals, equipment bought on hire purchase will be accessible for use almost instantaneously without payment of the entire price. This makes it the most suitable for the purchase of expensive assets.

Moreover, before the completion of the repayment term, the hirer has the flexibility to terminate the agreement if they do not wish to acquire its ownership rights.

 

Hire Purchase or Leasing of Equipment in Singapore

If you’re looking for highly-priced equipment to boost the productivity of your business operations, it may be confusing — especially with so many things to look out for when it comes to either obtaining the asset through hire purchase or leasing. If you’re still having trouble deciding which would best meet your needs, simply give our team at ETHOZ a call at 6654 7799! You can also drop us an email at contactus@ethozgroup.com today!