DBS Supports SCCCI's Call To Help SARS-Affected SMEs
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Bank Will Provide Financial Relief for Pasir Panjang Vegetable and Fruit Wholesalers
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DBS' Three-Pronged Solution Will Mitigate Receivable Risks for SMEs
SINGAPORE, May 13, 2003 - DBS Bank said today it supports moves by the Singapore Chinese Chambers of Commerce & Industry (SCCCI) to help SARS-affected members. DBS will provide financial assistance to the affected Pasir Panjang wholesalers during this SARS outbreak.
DBS will provide Micro Loans under the Local Enterprise Finance Scheme (LEFS) to help affected SMEs gain access to working capital to ease their immediate cashflow problems. LEFS loan applications from the Pasir Panjang wholesalers will be accorded priority processing.
Loans will be granted collateral-free and at a fixed interest rate of 5% per annum. Only the personal guarantee of the directors, partners or sole proprietor of the borrower is required.
In addition, DBS will pay the premium for the first year of the "KeyMan" insurance plan should the successful loan applicants from Pasir Panjang Wholesale Market take up the plan. This will lessen the burden and liability of the personal guarantor.
To help the Pasir Panjang wholesalers better understand the various financing choices available to them, DBS representatives will meet up with the wholesalers this week to explain the financial schemes and offer assistance.
"DBS is already a leading participant of the LEFS scheme and we will further step-up our involvement to help our customers through this difficult business environment. DBS takes a long-term view of our relationships with our customers, and we will continue to nurture partnerships with them during this economic slowdown," DBS' Managing Director and Head of Enterprise Banking, Hong Tuck Kun said.
On top of the immediate financial assistance mentioned above, DBS will provide a new three-pronged solution to manage receivable risks at much lower costs. This program will be offered to DBS' SME customers and/or members of SCCCI.
The SMEs can choose one or all of the following services:
1. Transfer credit risk to DBS
SMEs can buy credit protection cover under which DBS would take over the credit risk of their customers.
2. Information search on the credit standing of prospective and existing customers
Leveraging on DBS' working arrangements with InfoCredit D&B (Singapore) Pte Ltd, SMEs can gain access to information on the credit standing of their prospective and existing customers to help them make better-informed credit decisions. Through DBS' special arrangement, InfoCredit D&B (Singapore) Pte Ltd is extending a preferential rate to the SMEs.
3. Professional debt collection service
SMEs seeking to collect from customers can tap DBS' corporate arrangement with Datapool (S), a fully owned subsidiary of DP Information Network Pte Ltd, to help them collect on their behalf. Through this arrangement, SMEs will have access to professional collection services at a special corporate rate.
SMEs keen to take on the credit information search and debt collection services can approach the two service providers directly. Under the arrangement, the Bank will leverage its large purchasing volume to secure preferred pricing for its SME customers.
"As a strategic financial partner, DBS will continue to support its SME customers with banking and financial needs and update them with relevant market information to help them ride through this trying period. Our comprehensive and fully integrated Chinese language website section of our Internet site is also useful in this regard," Hong added.
SMEs who are interested in the specially-arranged services can contact DBS at 1800 222 2200 for purchase of credit protection cover Infocredit D&B (Singapore) Pte Ltd at 6228-9515 for information search and Datapool (S) at 64779-779 for debt collection service.
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