Singapore corporate funding

Singapore corporate funding

Since 2003, Healy Consultants helps our Clients with Singapore companies with corporate funding by i) securing micro loans for eligible startups ii) securing government grants for both new and established companies and iii) identifying key tax incentives for multinational companies considering relocating to Singapore or establishing a subsidiary in the country. Please find below a detailed overview of loans and tax incentives available in Singapore.

Loans available to new start ups

Singapore financial support

  • Loans of up to $100,000 for local SMEs with 10 or less employees. Minimum 5.50% interest rate for loan tenure of 4 years and below. Primarily for daily operations or for automating and upgrading factory and equipment. * Subject to Participating Financial Institutions’ assessments of risks involved;
  • To apply for this micro loan our Client must be i) registered in Singapore and ii) has 10 or less employees OR has annual sales not exceeding S$1 million and iii) at least 30% local shareholding and iv) company’s Group Annual Sales of not more than S$100 million OR company’s Group Employment Size of not more than 200.

How to apply for Singapore corporate funding?

Healy Consultants will guide our Clients through the loan application process including pre-assessing our Clients eligibility, liaising with the financial institutions on our Clients behalf and negotiating the terms of the funding. Below is an overview of the application process:

Before submitting an application

  1. To ensure that our Client’s business qualifies for the micro loan, Healy Consultants in-house experts will prepare a detailed business plan and SWOT analysis to be submitted to the bankers for a preliminary approval and feedback on the application;
    • Our Clients must provide Healy Consultants with sue diligence documents supporting the pre-application including i) ACRA business profile of the Singapore company ii) audited accounts or financial statements certified by a Singapore CPA iii) latest 6 months bank statements and iv) personal income tax assessment of the company shareholders and directors.

Submitting the application for a micro loan

  1. After receiving a written confirmation from banks or finance companies, Healy Consultants will complete and submit a formal application together with other supporting due diligence documents and business plan. Click on the links to view a sample of SPRING Singapore application form and an application form guide;
  2. Our Clients should expect micro loan approval from the banks or financial institutions within 3 weeks of application submission Depending on the size of the loan, nationality of directors and shareholders and the business activity the lending entities may revert requiring additional due diligence documents before providing a final decision;

After micro loan approval

  1. Upon successful application for Singapore corporate funding, our Clients must keep proper records of repayment deadlines and ensure repayments are completed on time. Repayments start 1 month after disbursement of the loan.

Singapore financial institutions providing micro loans

The participating Financial Institutions providing corporate funding in Singapore are banks and finance companies:

  • Banks: DBS, Malayan Banking Berhad, OCBC, RHB Bank Berhad, The Bank of East Asia, HSBC and UOB;
  • Finance companies: Hong Leong Finance, Ethoz Capital, IFS Capital, ORIX Leasing Singapore.

Singapore Grants

Singapore has one of the world’s most comprehensive array of government grants available to both locally owned companies and foreign companies establishing a presence in Singapore. The grants focus on various aspects and include i) improvement of capability of SMEs ii) foster innovation and development of tech companies and iii) encourage internalization of local enterprises. Below is a sample of grants available:

Singapore investment incentives

Singapore aims to attract innovative entrepreneurs who bring new technologies to the market and add value to the local economy. As a result, a growing number of investors are looking to set up a company in Singapore as the best way to turn their ambitions into reality. Healy Consultants has helped hundreds of Clients complete their Singapore company registration. One Singapore government department, Enterprise One, has the specific aim of sparking enterprise and creating incentives for entrepreneurs. Following is information about such government incentives, grants and other benefits available from Enterprise One for Singapore incorporation:

Singapore incorporation incentives

  1. There are many benefits available specifically for start-ups in Singapore, in the form of grants, tax incentives and equity financing in order to encourage incorporation. The Singapore government is highly supportive of enterprise and wishes to instill entrepreneurial drive in the country;
  2. Examples of Enterprise One grants available for start-ups in Singapore are i) ACE startups grant that provides first-time entrepreneurs up to S$50,000 in co-matched funds and the ii) ideas.inc Business Challenge, that provides up to S$65,000 of funding as well as mentorship, for young entrepreneurs to advertise and innovate their business and idea;
  3. Tax incentives available for start-ups in Singapore are i) R&D Incentive for Start-Up Enterprises (RISE) Scheme, that provides up to S$20,250 to companies spending at least S$150,000 in research and development in the first 3 years of business ii) tax exemption for start-ups, giving 0% tax on the first S$100,000 of income in the first 3 years of business and 50% tax exemption on the next S$200,000 of income;
  4. Equity financing available for start-ups in Singapore are i) Business Angel Funds (BAF), providing S$1 investment from SPRING SEEDS capital for every S$1 investment from a recognized Business Angel Group up to a maximum of S$1.5 million from SPRING SEEDS, ii) Early Stage Venture Funding Scheme (ESVF), that provides up to S$10 million by giving S$1 from the National Research Foundation (NRF) for every S$1 invested by a third party investor – for technology start-ups only and iii) Spring Start-Up Enterprise Development Scheme (SPRING SEEDS), that provides S$1 for every S$1 invested, up to a maximum of S$1 million, in the funding of creating new and better products, processes and applications

Other Singapore investment and tax related incentives

Startup Enterprise Development Scheme (SEEDS)

  1. According to the Singapore Economic Development Board (EDB), investors who have set up a Company in Singapore can apply for SEEDS equity financing. Every dollar raised by the startup from third-party investors is matched by the EDB, up to S$1million, upon investment approval). The minimum investment by the third party is S$75,000 cumulative. Under this scheme, both the EDB and third-party investors take equity stakes in the company in proportion to their investments;
  2. To take advantage of this scheme, a Singapore Company must be:
    • A legal entity that has previously secured total debt and equity financing of not more than S$500,000 (US$406,000);
    • Involved in the development of innovative products, processes and applications in manufacturing and services;
    • Incorporated in Singapore and carry out its core activities in Singapore.

Technology Enterprise Commercialisation Scheme (TECS)

  1. TECS supports the growth and development of innovative and technologically competitive enterprises. The program supports the start up of new enterprises with strong technology intellectual property and a scalable business models. TECS recognizes the risk and costs required for the development of cutting edge technology and hence rewards a grant for competitiveness in commercial and technical viability;
  2. Reimbursement costs can include:
    • Proof of Concept (POC) – Up to 100% of qualifying costs for each project, maximum of S$250,000;
    • Proof of Value (POV) – Up to 85% of qualifying costs for each project, maximum of S$500,000.

Tax Incentive for Angel Investor Scheme

One Singapore investment option for high net worth entrepreneurs is an incentive program offered via Spring Singapore, called the Angel Investor Tax Deduction Scheme, or AITD. The program aims to encourage investment in Singapore start-ups, via an enticing tax deduction of 50% of the investment cost up to a maximum of $500,000 per year. To qualify the ‘Angel Investor’ must be an individual and possess entrepreneurial experience or senior corporate management experience.

Contact us

For additional information on our corporate funding services in Singapore, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi
DBS OCBC standard chartered bank Singapore ANZ Singapore citibank Singapore hsbc Singapore bni Singapore