DBS Launches New Comprehensive Financing Package 'IMPRESS' To Help SMEs

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No tangible assets needed as collateral

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Provides SMEs With Working Capital To Meet Purchase Orders

SINGAPORE, OCT 23 - DBS Bank today launched a new comprehensive financing package called 'IMPRESS' that makes it easier for small and medium enterprises (SMEs) to obtain working capital finance in the current economic downturn.

With IMPRESS, which stands for Import, Production, Export, Sales and Services financing, DBS will provide a total financing package to help SMEs fulfil purchase orders from their clients, without the need to provide tangible assets as collateral. This means SMEs will have the necessary funding to pay for their raw materials, production supplies and working capital for sales and distribution.

"Most financial institutions require customers to furnish properties or quoted shares as collateral before giving out loans," said DBS' managing director and head of Enterprise Banking, Hong Tuck Kun.

"With IMPRESS, DBS will grant financing to help SMEs source for the necessary raw materials and take care of labour costs and other overheads so long as the customer has a purchase order to support the application."

"This initiative is part of DBS' commitment to nurture partnerships with our clients during this economic slowdown. Taking a long-term view of our customer relationships, we believe this scheme will help affected SMEs ride out this trying period."

DBS will also undertake the collection of payments on behalf of its customers for the order financed under IMPRESS.

"With IMPRESS, customers will not only benefit from having the necessary funds to meet their purchase orders, they will also do away with the hassle of having to collect payments after delivery," Hong said.

"During this difficult time, customers may be concerned about their client's ability to settle promptly. They also have to contend with risks associated with exchange rate volatility. With IMPRESS, customers can have peace of mind with our integrated collection service, credit protection and foreign exchange coverage."

IMPRESS provides a comprehensive three-in-one financing package that includes an import financing facility comprising letters of credit, trust receipt, bill receivable purchase and shipping guarantee; overdraft facility to meet general expenses and accounts receivable purchase facility to help customers turn their trade receivables into cash flow quickly.

DBS will provide financing quantums of up to 60 per cent of the purchase order and 80 per cent of the invoice value of receivables with its import financing and accounts receivable purchase facilities respectively.

DBS officials said companies engaged in producing goods and services for both export and local markets will stand to benefit from IMPRESS.

Apart from the new IMPRESS scheme, DBS, earlier this month, implemented another initiative called "Gain with DBS" that will help its SME customers achieve at least 10 per cent in cost savings. Under that programme, DBS will play an aggregator's role in leveraging on its huge purchasing volume to secure preferred pricing for SME customers for office essentials.

DBS also holds a series of quarterly seminars focused on topical subjects to update customers with relevant market information. It will be holding a seminar titled "Measures to weather the economic downturn" on October 30 to discuss management strategies on coping with the economic slowdown and ways to improve working capital for its SME customers.

DBS Group Holdings Ltd is the holding company of DBS Bank and is the largest banking group in Southeast Asia. Ranked among the top banks in Asia, DBS Bank is a recognised leader in Internet banking and e-commerce. Beyond Singapore, DBS Group serves corporate, institutional and retail customers through subsidiaries and associated companies in Hong Kong, The Philippines, Indonesia and Thailand, and international banking services through a network of overseas branches and offices. With its acquisition of Dao Heng Bank in June, 2001, DBS is the fourth largest bank in Hong Kong by assets.