Business owners in Singapore are not receiving new help for the smaller to medium sized business. It's being given in the hopes that these owners can aggressively be a part of an emerging sector of free enterprise. American Express has long been the business name associated with all things consumer credit is now extending the olive branch to the corporate world of Singapore. They are specifically targeting the mid and small sized business owners.
American Express is facilitating the collaboration with different business experts and companies to work in concert with these company owners. The target areas are online promotions and devoted cell phone customers reward drives. American Expressed also said there will be forthcoming businesses chosen to receive an awards package as well.
American Express said starting on August 1 awards ranging from $5000 to $50,000 will be given to the selected companies. The drive will run until the end of the year. According to American Express General Manager, Kevin Alcott, it's a way for the company to specify certain targeted companies and reward them with monies that can be re-invested. Alcott overseas operation for American Express in Thailand and Singapore. Alcott said research indicates that there is a real need and interest from small and medium sized business. There is a quest to learn what will make their companies run more efficiently and turn over more profit. Alcott believes his company can help facilitate those goals.
There are other new avenues for these business owners to take advantage of in the future as well. OCBL Bank estimates they represent about 40% of the small to mid sized businesses in Singapore. They are interested in making available funding options more accessible to these business owners.
According to Eric Ong of OCBL bank, some of these smaller companies come up short when it comes time to issue performance reports. In order to help them become more competitive these new loan options are being made available to them. Ong said due to slower growth in other ranges, these small and mid sized businesses are being looked at more and more, as the growth potential within them rises.
This the first year that the company extended loans to newer companies with a loan amount in the $100,000,00 range.
Ng Kian Teck of Voyage Research says loans in the housing and car sectors remains rather sluggish at this time. Companies went to lend out money in balk, and they are seeing the small and medium sized businesses as sound investments now. A recent report by the Asian Development Bank, indicated that there 25% of all loans given out in th e Asia Pacific in 2012 were given out to small and medium sized businesses. Industry experts predict that there will be 180 billion dollars in loans extended to small and medium sized businesses between 2010 and 2015.
In spite of the optimism for continued growth in the small and medium sized businesses there is still a lot of restraint being shown by various lending institutions. Ng Kian Teck said that that for shorter loan terms the banks have been doling out loans in a good study fashion, however longer term loans, is when they seem to be digging their proverbial heals in. Loans longer then a month are not given out as liberally. The banks are carefully weighing out what is their best interested as far as these businesses being about to honor all their loan commitments. Recent numbers by the International Finance Company indicated that over half of these businesses are not getting the type of loan assistance needed.