Different types of Financing in the Singapore Market

Business financing is the process of funding business activities, making purchases, or investments. The financial markets in Singapore are well-established and financially stable. Comprising different financial sectors, our country is certainly a profitable financial hub.

Overall, there are many different types of business financing in the Singapore market, such as banking (especially investment banking and treasury activities), wealth management, insurance and capital market services (capital financing equipment leasing, auto leasing and commercial vehicle financing).

 

Banking 

The common term of banking is an industry that handles cash, credit, and other financial transactions. Banks play an essential role in the economy by providing a financial service for people wishing to save and offering finance to businesses who wish to invest and expand. These continual loans and business investment are important for enabling economic growth in the country. On a company’s cash flow bank statement, there is a section that is also known as cash flow from financing activities, which summarizes how the business was funded over a particular period. The financial activities include:

 

  • Issuing debt to raise money
  • Repaying debt
  • Issuing equity to raise money
  • Repurchasing equity
  • Paying dividends

 

The bank is a safe place to store extra cash and credit for customers and organizations. The bank offers financial transaction services such as savings accounts, certificates of deposit, and checking accounts. Banks use these deposits to make loans such as home mortgages, business loans, educational loans and car loans. However, the trend of car loans has been declining. This is due to the advantage of car leasing, which generates a lower cost of acquiring and maintaining the car. Moreover, car leasing requires little or no down payment, and monthly leasing fees are usually lower than car loan payments. At ETHOZ, we offer professional car leasing services for all individuals, organisations, and companies. We are also flexible when it comes to the cost of car rentals, offering a comprehensive range of financing solutions tailored to meet your budget constraints.

 

Wealth Management

Wealth management is an investment advisory service that combines other financial services to address the needs of affluent clients. Wealth management refers simply to money management, in all its aspects. Wealth management firms make money by charging fees for the various services they provide. In addition, wealth management firms provide clients with brokerage accounts, so clients can access virtually any type of investment. In addition to investment services, wealth management clients are provided with tax planning, estate planning, and retirement planning services. Wealth management requires a team of highly skilled and professional investment management advisors, along with a wealth manager to direct them. Wealth management is important and it involves more than just an investment advice. The process encompasses all parts of a client’s financial life. A client will benefit from a holistic approach that brings together several services to meet their specific financial goals. In another word, the client no longer has to obtain different pieces of financial advice from different sources.

Wealth management can help to maintain a client’s wealth and guide them in meeting their specific financial objectives. For instance, many wealth management solutions are tailored for particular clients. These solutions take into account a client’s current financial status, future goals, current wealth and other significant factors.

 

Insurance 

Insurance is a type of coverage that is available to help you pay for damage to your property, car, medical bills etc. Likewise, it can be used to pay others on your behalf when you injure someone or damage their property. Insurance is a contract that transfers the risk of financial loss from an individual or business to a legitimate insurance company. It is extremely important as it helps to stimulate financial stability while promoting trade and commerce activities. This results in a sustainable economic growth and development in the country.

In another word, it is a type of business financing that uses probability and large numbers to determine the cost of insurance premiums charged to the clients based on various risk factors. The rate of returns must be realistically sufficient for the company to pay claims and expenses in the future, while making a reasonable profit, but not so much that it turns away potential customers. Insurance companies market their products and services to consumers in different ways. The price companies charge for insurance coverage is subject to government regulation. At ETHOZ, we provide a comprehensive range of auto solutions for authorised accident reporting and repair centre for the major insurance companies in Singapore, making us a one-stop reporting and insurance claim service centre for our customers’ complete convenience and peace of mind.

 

Capital Market 

The capital market plays an extremely important role in channeling savings into productive investments for the country’s development of commerce and industry. These markets mobilize savings in an economy and divert them into productive investment. As a result, the capital market significantly helps in the capital formation and economic growth of the country.

The capital market also refers to a huge spectrum of tradeable assets that includes the stock market as well as other trading different financial products such as capital financing equipment leasing, auto leasing and commercial vehicle financing. A capital lease is usually long-term and non-cancellable and is used to lease equipment that the organisation wants to use in the long term or buy at the end. At ETHOZ, we offer a range of services that includes capital financing equipment leasing solutions and integrated automotive solutions like auto leasing and commercial vehicle financing. We are proud to be appointed by Enterprise Singapore to provide loans.

 

Find Out More about Business Financing in Singapore

For those individuals who are seeking to find out more about business financing in Singapore, it is important to do some research using an ample amount of time to prevent any possible hiccups. At ETHOZ Capital Ltd, we provide a wide spectrum of capital financing solutions – all individually customised to suit customers’ unique needs and requirements.

Take a look at our business financing solutions or simply reach out to a member of our team at contactus@ethozgroup.com to explore the options available to you. If you like reading more of such content, head over to our news to learn useful tips and case studies that can help your business!

 

 

5 Driving Tips To Keep You Safe On Singapore’s Road

Car safety is often one of the last things most people consider before purchasing a vehicle. Before buckling up your seatbelt for a ride, it is extremely important to keep in mind the importance of safe driving in the road. No one will admit to being a careless driver, but the truth is driving offenses are inevitable. Most of us, at one point or another, are distracted while driving behind the wheel on the road.

As a small country, Singapore is known for its financial and transport stability. However, due to its small island size, the roads are easily cluttered and crowded with cars (which led to the implementation of road tax or ERP). To drive legally in Singapore, you will need a car license. While most locals own a vehicle, others will rent them (drivers under the age of 23 are not allowed to rent a car).

Seeing how there were at least 15 road accidents in the first few weeks of ‘Phase Two’ in Singapore, it seems like many have misplaced the importance of safe driving. In order to better improve the safety of all drivers and passengers, we’ve put together a comprehensive list of safe driving tips to keep you safe on Singapore’s roads.


1. Drive Attentively

It is significant to drive with full attention to avoid possible accidents. Most Singaporeans lead hectic working lives, so it is important to avoid driving while suffering from severe lack of sleep.

If you think you are tired, stressed, or unwell, take a break from driving or drive out to the nearest exit. The chances of you falling sleep are high and driving in such a state is unwise. Driving with zero concentration will affect your judgment and get you behind the steering wheel. Consequently, it will slow down your reaction time and you might experience a blurry vague vision. Thus, driving while being tired is extremely risky and most go into an ‘autopilot’ (dozing) mode when they are too tired.


2. Do Not Use Your Mobile Phones

While a law was passed in 1999 to prohibit the use of mobile phones while driving, some drivers are easily distracted to look at their devices. In fact, more than 8 in 10 Singapore drivers

Inevitably, drivers who use a mobile phone are more prone to crash their vehicle. Mobile devices are one of the biggest distractions as drivers pay full attention to them – taking their hands, mind and vision off the road.

Thus, if you happen to be a passenger in a car with a distracted driver, you need to intervene with the driver to focus on driving safely.


3. Drive at a Safe Speed

One of the first things that cause you to revoke your driving license is the act of speeding. If you were to take a few seconds off the road, you might be in for an unpleasant incident the next moment.

As the terminology suggests, when you drive at high speeds, things can happen a little bit faster than you expect. The faster the vehicle is moving, the longer it takes for it to do your bidding when you apply the brakes. The sheer physics of a collision at high speeds should be enough deterrence. The transfer of energy is immaculate due to higher momentum, which can cause major injuries.

It is always beneficial to drive slowly and pre-empt yourself for any upcoming obstacles while driving. By driving slowly, you can easily control your car to safety when there are obstacles ahead. It gives you more time to react in unforeseeable situations. This also helps you to maintain a safe distance from the car in front.


4. Don’t Drink and Drive

Driving while being drunk is extremely dangerous and drivers with high blood alcohol content are at greater risk of car accidents, injuries and even death. Alcohol is water-soluble and is immediately absorbed in the bloodstream. This causes more blood to be supplied to the brain than to other organs. As a result, it will significantly impair brain function within minutes. This affects one’s attentiveness and cognitive ability to make quick decisions and reactions on the road.

Undoubtedly, drinking can cause an individual to become rather drowsy and sleepy. It affects your ability to make accurate and sensible judgment (basically you have zero sanity when you’re drunk). This is clearly not something desirable as car accidents are highly possible and you might not even reach your destination. Besides getting someone killed or badly injured, one will be charged with heavy penalties for drink driving and lose his/her driving license.


5. Give your Car Regular Check-ups

If you have a car, it can be common to ignore any type of maintenance unless something goes wrong. This is not a good practice and rather, you should regularly check your car – fundamental processes such as changing your oil, checking your tire pressure and getting scheduled inspections will keep your vehicle healthy and workable.

Cars consist of many wear and tear components, such as tyres, brakes, and other small components. Thus, regular check-ups with the car doctor are important to maintain it in control and healthy on the road.

Most car lovers already know how important regular check-ups are, but it’s still important to continue emphasising this factor for people who don’t consider themselves interested in how their car operates. A simple mechanical failure can cause the most cautious driver to get into an accident. This is why you should always keep your car in perfect working condition, for the safety of yourself and other road users.

These driving tips will definitely help to guide you in your driving journey! Henceforth, you can travel in a car safely with your friends and family!

At ETHOZ, you can rent our cars and travel around Singapore safely. Heading for car rental is also a good way to enjoy convenience and safety without the extra commitment of buying your own car.

4 Business Costs You Could Be Saving On in 2020

Every business requires reliable cash flow to stay afloat — especially when times get tough. But choosing where to spend and where to save is a difficult decision for anyone running a business. The coronavirus situation has undoubtedly put a dent on the finances of many businesses which has made it even more important to adopt cost-cutting strategies to control expenditures and maintain positive cash flow.

Identifying non-essential costs and strategically cutting them can help you keep up your profits and prepare for life post-COVID-19. For businesses that are trying to cut expenses to boost your cash flow, here are some business costs you should be saving on to maintain your market presence.

 

 

Reduce Vehicle Expenses

If you are running a business that requires a fleet of vehicles, you should be well aware by now how exorbitant vehicle costs can be. From fuel to servicing costs, especially for larger vehicles, these vehicle expenses can end up affecting your finances greatly if not managed effectively.

 

 

Commercial Vehicle Leasing

One way to reduce vehicle costs would be to not pay in full for the vehicle, to begin with. In other words, you can greatly cut your vehicle costs by engaging in vehicle leasing. Leasing a vehicle comes with certain advantages such as paying fixed monthly costs, leaving the maintenance and repair works to the leasing company as well as the ability to return the vehicles once the leasing period comes to an end.

At ETHOZ, we offer commercial vehicles of all configurations and customisations to meet your unique needs, allowing you to focus on the parts of your business which matters most. If your finances are tight or you are a business that is just starting out, leasing vehicles is a cost-efficient solution that will allow you to have better control of your cash flow. For the month of September, we are having a promotion for one of the top van rental options – NV200 van rental. For more information, drop us an enquiry or call us at 66547788.

 

 

Eliminate non-essential costs

 

Downsizing your office space

With many companies still adhering to work-from-home policies, it might be a good time for companies to assess their current office space to consider downsizing in the interests of cutting costs. If you run a particularly small business, it might be a more economical option to relocate to a smaller office space which will inevitably help you save on rental fees. In addition, with fewer renters seeking commercial spaces for rent at the moment, businesses can use this opportunity to negotiate favorable terms and conditions to be included in their leasing contracts.

Another option small teams can explore would be coworking spaces, which can be a great option to save on administrative costs especially with most of the team working from home indefinitely in many parts of Singapore.

 

 

Look for Alternative Affordable Options

While it is important for businesses to make investments to earn money, the COVID-19 pandemic has taught us that it is always important to have cost-saving strategies in place to survive any unprecedented impact on the economy. For instance, for companies that regularly make wholesale supply purchases, finding the best deals on the supplies you need can help cut supply costs greatly and help you better manage your finances.

Also, since many businesses are unable to accommodate foot traffic in their physical stores, investing in affordable digital sales strategies and moving their sales online could greatly reduce operational costs and engage customers to shop digitally. Seeking such cheaper alternative options can help businesses stay afloat even when the economy has taken a hit.

 

 

Seek Financing Solutions

Another way businesses can save costs is by seeking business financing options that best fit the requirements of your business so that you can enjoy the financial freedom it offers.

For instance, at ETHOZ, we offer a variety of loans ranging from working capital loans to term loans and even renovation loans which can help your business save costs and keep your daily operations running smoothly. Whether you’re looking for a technology upgrade or securing investment for your business, you can obtain easy access to our funds at competitive rates so that you can focus on growing your business.

 

 

Streamline Your Marketing Efforts

If you have yet to analyse and update your marketing mix according to what works, you may find that doing so will help you cut down on your expenditures greatly. For some businesses, you may spend money on different forms of marketing, out of which some of them may not be as effective in delivering the desired results.

Look for the areas of marketing where you have been investing a significant portion of your finances but are not producing results. Once you have identified these areas, looking for alternative and less expensive ways to get your message across can help you cut costs and utilise your marketing budget as effectively as possible.

 

 

Financing Options for Businesses in Singapore 

Running a business successfully during the pandemic can be a challenging and stressful period for many business owners. The challenge for many businesses is finding ways to reduce their costs without lowering the quality of their products or decreasing output

 

 

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!