Financing for SMEs

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Financing for SMEs

With the impact of COVID-19 deepening, liquidity is key to SMEs during this time to ensure financial obligations are met. We are here to help SMEs under pressure during this challenging time, supporting with various financing measures enabling you to concentrate on the business at hand.

Financing for SMEs

Working capital is vital now. With the decline in supply and demand, loans can be used to help with cash flow during this time. HSBC is a participating bank for the enhanced measures extended via the following Enterprise Singapore financing schemes[1]:

  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[2]

Financing for SMEs

Other measures SMEs can consider

Secured Term Loans

As part of our commitment to our clients, we are offering our SME clients an option to defer principal payments on their secured term loans up to 31 December 2020.

Applicable to SMEs[2] with:

  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 90 days past due

Borrowers can choose to extend the loan tenure by up to the corresponding deferred principal payment period.

Commercial Trade[3]

  1. Relief to SGD$600 million trade loans to ease business cash flow pressure
    1. Pre-approved 60-day extension of trade loans maturing on or before 30 June 2020 without any additional fee or penalty interest.
  2. One hour turnaround for issuance of shipping guarantees instead of the standard same-day issuance
    1. If you are experiencing delays in receiving shipping documents from counterparties, HSBC will expedite the issuance of shipping guarantees within one hour, as opposed to the standard 'same-day' issuance, subject to available limits in your trade facility.
  3. Waiver of amendment fees on Letters of Credit impacted by delays
    1. If you are impacted by late shipment and late presentation of documents, the waiver of amendment fees on the Letter of Credit (LC) will enable you to change the terms of the LC to avoid penalty costs when suppliers present documents under the LC.

We understand this is a challenging time for businesses, and stand ready to support you.

[1] 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.

[2] The deferral of principal payments is subject to HSBC's credit and internal approvals.

[3] These are subject to HSBC's discretion and applicable terms and conditions governing the services.

Commercial Trade

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