Page 25


Credit tightening stifling SMEs


MEs are finding it harder than ever to get financing from the banks. Alarmingly, more than half or 55% of 700 applications for financing, including term loans, trade facilities and property refinancing have been rejected in 2012, with only 12.5% of all trade financing applications approved. Jeff Koh, Managing Director of SME consultancy firm Loyal Reliance reckons banks should have been more willing to approve applications for such facilities if applicants can prove they have bonafide operations. “Rejections may have occurred because banks may be more stringent in their selection regarding approval of such facilities now due to the high uncertainties of 2012.” But Kavita Bedi, Standard

Chartered Bank’s regional head of SME banking for Singapore and Southeast Asia, says it is a common misconception that when loan or trade applications are rejected, it is due to banks enforcing tighter credit criteria on businesses. “A term loan for example might not be approved if, in discussions with the business owner, it is found that there are no immediate needs for the funds and the intention of the business is to seek stand-by cash,” adds Bedi. Ultimately, Bedi suggests urges SMEs to collaborate with their banker, share their anticipated difficulties and not wait for their banker to discover these for themselves. “All these will improve business-banker relationships and help ensure healthy cash inflow to the SME community,” he concludes.

7 inches of extra pleasure Fly ScootBiz for more space and more frills – all at the price of other airlines’ Economy.

Fly ScootBiz from as low as


Switch to ScootBiz and stretch out with 7 inches of extra legroom and the most butt space of any budget carrier, more privacy in our 32 seatonly cabin, and all the full-service frills you’d get on Economy with other airlines. We’re talking 20kg of baggage allowance, a comfort kit, in-flight set meals and in-seat power – all in! Fly ScootBiz for more love at the same price you’d pay for other airlines’ Economy. Upgrade to ScootBiz now!



ScootBiz * All advertised Scoot fares comprise the price of the air ticket, associated taxes and surcharges only. Fares, taxes and surcharges are subject to change due to currency fluctuations. Advertised fares are available from 0900hrs (GMT+8) on 14 January 2013. ScootBiz fares are for one-way travel in the ScootBiz Cabin out of Singapore. Fares to Shenyang and Qingdao are available for travel between 11 January 2013 to 26 October 2013. Fares to all other Scoot destinations are available for travel till 26 October 2013. A credit card fee of SGD9.00 per guest segment is not included in the price for flights between Singapore and Bangkok/Taipei. A credit card fee of SGD10.00 per guest segment is not included in the price for flights between Singapore and Sydney/Gold Coast/Tokyo/Tianjin/Shenyang/Qingdao. Fares exclude optional charges, such as service fees that may be levied for buying tickets at ticket offices, travel agencies or by telephone. This offer is subject to availability and confirmation. Seats are limited and may not be available on all flights or all dates. BookingsREVIEW are not refundable except SINGAPORE BUSINESS | FEBRUARY 2012 25 as provided in the Conditions of Carriage. Flights are subject to regulatory approval. All the terms and conditions are available at

Singapore Business Review  
Singapore Business Review  

February-March 2013 issue