- September 2, 2020
- Posted by: avantconsulting
- Category: SME Loans
SME Loan for Singapore Retail Businesses – Singapore has been known in the region as one of the top choices for shopping and retail therapy.
According to Singstat, the Wholesale and Retail trade makes up close to 17.3% of Singapore’s GDP.
The Orchard Road stretch of Singapore is famous for having the most famous brands in the world and the area has been growing quite well in recent years with a stable amount of tourism dollars coming into Singapore.
Singapore has therefore been able to crown itself as a retail paradise for the many people who stop by Singapore every other day before the Covid-19 pandemic hit.
The Covid-19 Pandemic has caused a crash in the tourism industry of Singapore with close to zero tourist coming into Singapore with the fear of spreading Covid-19 amongst its populace.
The government is coming up with a series of ways to jump start and revive the industry but we have to note that the Singapore Retail business industry is hit extremely badly and will be affected at least until the economy starts to recover and tourist start to come back to Singapore.
Below are some pointers we made regarding the topic of SME Loan for Singapore Retail Businesses:
1. Retail business in Singapore are deemed as High Risk
With retail revenues falling drastically and unlikely to return to pre Covid figures, the retail business in Singapore is currently termed as a high risk industry. Defaults rates are also getting higher based on our information with the banks.
This puts the sector into high risk ratings by the bank, thus making it harder to get approval or having to go through stricter checks.
Banks are also likely to give lower loan quantum to reduce risk exposure.
2. Retail businesses are still able to gain access to loans but not high quantum
To reduce risk exposure, the quantum that is approved will likely be lower than usual.
This is to prevent the banks from suffering too big losses as there isn’t a timeline of when this pandemic might end.
Avant Consulting is a leading Singapore Loan Brokerage firm providing consultancy services for SME Loans and other forms of financing in Singapore.
If you are a retail business that requires some help with your finances or you will like to make plans on how to better get access to funding to pull through this downturn and in the future to grow faster, set up an appointment with us to plan things through with us.
We look forward to working with you to provide high quality services in funding sourcing as well as working with funding institutions to better provide you with help.