A pandemic of epic proportions has long been forecast, but the enormity of challenges stemming from the COVID-19 outbreak has taken the world by shock. Singapore is no exception.
The activities of several small and medium enterprises (SMEs) have virtually come to a standstill as a result. This is a challenge for Singapore, as SMEs form the backbone of economic activity here, comprising 99 per cent of the 273,100 business enterprises, and employing 72 per cent of the 3.5 million strong workforce.
Although Singaporean SMEs have access to traditional banking facilities, obtaining funding to tide over liquidity crunches remains a considerable challenge, exacerbated by increased strains and risks brought on by the Covid-19 outbreak and circuit breaker measures. While there are many support measures in place, there are still some smaller firms that fall through the gap. As such, the role of alternative finance is increasingly important in providing support to these firms. One key advantage offered by alternative lenders is the ability—and willingness—to process smaller loans quickly and cost-effectively.
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As published on: sgsme.sg