Trade Financing
Getting the necessary financing from financial institutions is one of the challenges for an SME. According to numerous publications, SMEs are very underserved when it comes to bank financing. Most SMEs struggle to secure sufficient financing from traditional lenders as they do not know their options.
Excellence Singapore is one of the pioneers in the corporate loan brokerage business. We are an empanelled agent with major financial institutions and recognised partner and have assisted micro-SMEs, SMEs, and SGX-listed companies in securing the required financing through various channels such as traditional lending, digital lending, private lending, private equity, and angel investors.
Clients rely on us as a platform in providing unbiased advice based on the client’s needs and helping our clients to make informed decisions.
Our suite of financing services
| Business Term Loan | A popular type of financing where the lender loan a lump sum of money to a borrower with a predetermined fixed repayment interval with interest over an agreed period of term. Usually 12/24/36/48/60 months. |
| Working Capital Loan (EFS) | A type of business term loan where Enterprise Singapore jointly shared risk with the participating financial institutions (PFIs). The loan will be granted by the PFIs of up to S$300,000 per borrower with interest rate as low as 5.5% effectively per annum and the borrower is responsible to repay 100% of the loan amount back to the PFIs. |
| Personal Loan | A term loan granted by the lender to the individual instead of a company or businesses using the available credit limit from the individuals’ credit card or credit line with a term of up to 84 months fixed monthly repayment. Usually with interest significantly lower than the credit card overdue interest. |
| Business Overdraft | A standby revolving credit facility which acts as a part of a business current account. The borrowing take place when a business makes payment which exceed the available balance of the business current account. Interest is only charged based on the overdraft amount utilized and is calculated on a daily basis. |
| Trade Financing | A facility granted usually by large and reputable FIs to settle the conflicting requirement between an importer and exporter. An exporter can mitigate its payment risk as it is an arranged payment from the reputable FIs directly while on the same time accelerating the receivables. On the other hand, an importer reduces the risk as FIs only make payment upon receiving the bill of lading while on the same time receiving an extended credit term on their payment from the FIs. For domestic trades, the FIs pay the supplier on the behalf of the client while granting an extended credit term to the client. |
| Project Financing | A bundled facility granted to a business for the fulfilment of a certain contract (e.g. Construction contract, Blanket order, etc). The bundled facilities may come in a form of standby credit facilities, trade financing, revolving short-term loan and etc depending on the cashflow projection and the requirement of the particular project. The project cashflow will be used as a primary form of repayment to the lender with the project’s assets, rights and interests held as a secondary form of collateral. The facilities will cease upon the completion of the particular project. |
| Equipment/ Machinery Financing (Hire Purchase) | A term loan granted for purchasing of equipment, machinery and etc. The lender will make payment directly to the seller while granting a fixed term usually up to 5 years for the buyer to make repayment. The loan to value for new equipment or machinery can go up to 100%. |
| Accounting Receivables Financing/ Factoring/ Invoice Discounting | A popular type of financing where the lender advances the funds from the account receivables/ invoices of the borrower. Typically to help the borrower bridge the payment cycle gap. The loan to value for notified arrangement can go up to 100% of the invoice value while a non-notified arrangement usually capped at maximum 80%. Notified arrangement: where the lender notified the payable party that the invoice have been factored/discounted, and upon due date, instead of paying the supplier, they pay directly to the lender. Non-notified arrangement: where the payable party were not made known of the factoring arrangement and upon due date of the invoices, pay as per norm to the supplier where the supplier will pay back to the lender immediately upon receiving the funds from the payable party. |
| Customized Financing | Businesses which are seeking for other form of financing arrangement which are not the traditional bank financing (e.g., crowdfunding, private equity financing, private/angel investors placement, etc) can consult us for further advises. |
| Property Financing (Commercial/Residential) | A type of loan granted for the purpose of purchasing of properties. Usually with a tenure of up to 25 years depending on the purchaser of the property. Interest rate is cheapest as compared to all other type of financing as it is fully secured by the property. Loan to Value of up to 80% for residential property and up to 120% for commercial property which the latter consist of a portion of unsecured term loan which can be used for renovation. |
| Refinancing | As property loan interest typically works on a step-up basis, most borrower tend to refinance the property after lock-in period to reset the loan interest to year one interest which is the lowest. |
| Refinancing + cashout/gear up | Property owner whom are facing cashflow issue can look into refinancing their property and cashing out a portion subjected to the property value. The cash out portion will be granted as a term loan up to 25 years for a fixed monthly repayment. Residential property can also be used to pledge for a term loan for the business usage. Borrower who are facing difficulties with property financing due to TDSR can seek advise from our consultant to understand more about TDSR and how our consultant can assist you in getting other form of financing. |
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