Financing for SMEs

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Working capital is vital for SMEs, especially in times of uncertainty. We are here to help SMEs under pressure during these challenging times, to provide support with various financing measures enabling you to concentrate on the business at hand[1] .

HSBC is a participating bank for the enhanced measures extended via the following Enterprise Singapore financing schemes[2]:

  1. The maximum loan quantum under the Enterprise Financing Scheme - known as the SME Working Capital Loan – has been raised from SGD 600,000 to SGD 1 million
  2. The new Temporary Bridging Loan Programme (TBLP) has been expanded to provide additional cash flow support for all business sectors. Under this programme, eligible enterprises can now borrow up to SGD 5 million, with the interest rate capped at 5% p.a. from HSBC
  3. The enhanced Enterprise Financing Scheme (EFS) – Trade Loan has been increased from up to SGD 5 million to now SGD 10 million and the government's risk-share has also been increased from up to 70% previously, to 90% now based on the Solidarity Budget measures announced on 6 April 2020
  4. Businesses eligible under the SME Working Capital Loan and TBLP may also apply for up to 1-year deferral of principal repayment to help manage their debt
Financing for SMEs

Other financial support measures for SMEs

Secured Term Loans (Extended Support Scheme – Standardised)

This scheme provides our SME clients an option to defer 80% of principal payments on their secured term loans. The deferment period would depend on the tier[3] categorisation of the sector / industry in which the client operates per the “Job Support Scheme (JSS)”.

  • SMEs under Tier 1 or Tier 2 sectors[3] can choose to defer 80% of principal payments from 1 January 2021 up to 30 June 2021
  • SMEs under Tier 3A or Tier 3B sectors[3] can choose to defer 80% of principal payments from 1 January 2021 up to 31 March 2021

Eligibility

  1. Sales turnover of up to SGD 100 million or
  2. Employment size of up to 200 workers
  3. Opt-in basis for borrowers with loan repayments that are fully secured and no more than 30 days past due

Customised Restructuring Scheme (Extended Support Scheme – Customised)

This scheme aims to facilitate restructuring of unsecured or secured credit facilities for SME clients with more than one lender, who have exhausted all efforts to work out arrangements bilaterally with their lenders and will benefit from a coordinated restructuring approach among their lenders. Interested clients would need to be recommended by one of its participating lenders to enter into the scheme.

Eligibility

  1. Sales turnover of up to SGD 100 million or
  2. Employment size of up to 200 workers
  3. Opt-in basis for borrowers with secured or unsecured credit facilities for whom the following schemes are not suitable:
    • Extended Support Scheme – Standardised
    • Credit Counselling Singapore’s scheme for Sole Proprietors and Partnerships (“SPP Scheme”)
    • Ministry of Law’s Simplified Insolvency Programme for qualified micro and small companies (“SIP”)

[1] The availability of these financing measures is subject to HSBC’s credit and internal approvals, and fulfilment of relevant eligibility criteria.

[2] All loans extended under Enterprise Singapore's financing schemes are subject to Enterprise Singapore's qualifying criteria and approvals, and HSBC's credit and internal approvals.

[3] Determination of tier would be established via Job Support Scheme (JSS) notice or any other documentation received from IRAS. Where JSS is not applicable, the Bank has the discretion to decide which industry tier your business belongs to and decide the deferment period accordingly. Tier 1 and Tier 2 sectors are Aviation and Aerospace, Tourism, Hospitality, Conventions and Exhibitions, Built Environment, Licensed food shops and food stalls, Qualifying retail outlets, Arts and Entertainment, Land Transport, Marine and Offshore. Tier 3A and 3B comprises of all other sectors not in Tier 1 and Tier 2.

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