InvoiceInterchange has been supporting the funding needs of Singapore SMEs since 2015. When COVID-19 set upon us in 2020, businesses across many industries faced unprecedented challenges coming in all directions. Over the past year, we have been able to continue to support both our existing clients as well as new local Singapore businesses and have also taken time to observe and analyse the impact COVID has had on our clients. Some of the key points from our COVID-19 Business Insight Report are:
COVID-19 Business Government Financial Assistance
Government support has played a major part in supporting the local economy and has helped keep many SMEs afloat during the height of the pandemic. In addition, the various financial assistance provided by the Singapore government has in many cases resulted in easing cash flow pressures on SMEs, kept locals employed and lifted the spirits of many business owners and their staff.
Some of the available financial support provided by the Singapore government:
- Jobs Support Scheme – helps retain local employees through wage subsidy (between 10% to 75%). The pay-out was prioritised by the level of impact that COVID-19 had on the industry. It is expected to be extended until June 2021.
- Enterprise Financing Scheme – SME Working Capital Loan (EFS WCL), offered through EnterpriseSG and major banks allowing eligible businesses to obtain loans up to S$10 million with minimal interest. It is a risk-share product with the Singapore government.
Some industries grew during COVID-19
COVID-19 was not all bad news for all industries. We saw a level of growth in certain industries during the peak of the pandemic:
- Cleaning services
- Domestic logistics
- Food wholesalers
- Healthcare related product wholesalers
Recovery in the Singapore economy
Based on financing volumes on the InvoiceInterchange platform, we observed higher demand for invoice finance across all sectors from Q3 2020 as business began to gradually pick up. We also observed an increase in government projects awarded to SMEs.
We strongly believe that Singapore SMEs will continue to play a major role in the continued recovery of the local economy and are optimistic that Singapore is on track on this front. We are now well into 2021 and are excited to provide SMEs with the working capital and cash flow they need to grow, innovate and build towards a successful future.