Heartland businesses face stiffer competition from shopping malls. (Photo: HDB)
Hong Leong Finance, Singapore’s largest finance company, has rolled out a new loan to help small retail businesses in HDB estates cope with increasing competition from suburban shopping malls.
The launch of the HDB SME loan package comes after the recent Budget 2016 announcement to enhance the Revitalisation of Shops scheme, to better support promotional activities and upgrading projects in the heartlands.
To understand their challenges, the company surveyed over 50 HDB business owners island-wide. Almost all of them said they face stiffer competition from bigger establishments that have better resources.
More than 50 percent of them also recognise the need for staff training and improved operation efficiency, as well as upgrading their premises to attract HDB residents.
Those with a setup of at least two years can apply for a loan of up to $100,000, which comes with a flexible repayment term of up to three years. The loan interest is charged on a fixed rate basis.
In addition, the package offers a business current account with no account fee and no cheque book charge to ease cash flow management.
The loan can be used for staff training, working capital, process improvements and premises refurbishment.
“We are aware that HDB business owners are under immense stress during this challenging time. While the latest HDB SME loan package is not a silver bullet to all their problems, we hope that our loan package will provide the further financial boost to assist them in invigorating their businesses,” said Ian Macdonald, President of Hong Leong Finance.
Shop owners who apply for the loan from now till 30 June 2016 will have their loan application processing fee of $500 waived, together with a one-year waiver of the fall-below fee for the business current account.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
