Bank lending in Singapore shrank to 0.7 percent earlier this year as loans to business continue its decline, though signs of pickups are shown. Loans through the domestic banking unit that captures lending in all currencies, but reflects mainly Singapore-dollar lending was at $680.36 billion last June, compared to $685.26 billion in May, based on data from the Monetary Authority of Singapore on Thursday.
The culprit is none other than the Covid-19 crisis.
The lending drop was dragged down by declining loans to financial institutions, falling 1.3 percent to $102.24 billion. Loans to firms in general commerce and transport, storage, and communication are also dropping.
So, how do you secure a business loan despite this trend?
It’s quite simple. There is still a business loan in Singapore that provides to small and medium-sized enterprises (SME). DBS, for instance, can provide the necessary funding for struggling companies or those looking to expand despite the global pandemic. They offer online applications with attractive rates, fast reviews with an average of 5 minutes processing time, and convenience through MyInfo Business. Learn more by visiting their website. DBS’ online loan application service is offered to Singapore registered businesses that are operating here.
This service enables SME owners to apply for up to 11 types of loan products online without requiring signatures.
What to expect from modern SME loans
SME loans often come in different forms, including overdrafts, microloans, equipment loans, vehicle financing, property loans, import & export lines, foreign exchange, factoring, and even business credit cards.
What’s great about online applications these days is that small and medium enterprises can track their loan applications in real-time and get instant notifications. Instead of handwritten or physical forms, DBS, a popular business loan Singapore lender made the entire application process paperless, with no signature required – an industry first. Their application forms have a redesigned with simple, jargon-free language, and the fields have been reduced by three quarters to accelerate the application process to only 5 minutes online.
It also links to the backend system to the Account and Corporate Regulatory Authority’s database to expedite the process.
When applying for government-assisted loans like the Spring microloan program, SME owners currently have to complete different forms, the DBS loan application form, and the Local Enterprise Financing Scheme (LEFS) form. The DBS’ new loan application service has two forms, which were combined into one – no more repetitive fields.
DBS has been Singapore’s largest provider of small and medium businesses since 2011. The bank receives approximately 1,500 micro-loans applications annually or around 60 percent of all micro-loans applications supported in Singapore.
Providers like DBS also equips all SMEs with a complimentary Covid-19 SME Business Resource Guide that allows business owners to get insights necessary to navigate their businesses through our existing economic uncertainty. The guide has fresh perspectives from industry leaders on how the operating landscape may change because of Covid-19 as well as actionable tips for SMEs to position themselves revival or growth as economies look towards a gradual restart.
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