(1 June 2020 – Singapore) DBS has approved more than 3,500 loans for micro and small enterprises, amounting to over S$1.1 billion under the Enterprise Singapore's financing schemes since early March till mid-May.
Of these approved loans, around 30 percent were for customers with no prior relationship with the bank, while over half were for customers with no prior borrowing history with DBS.
The average loan amount for these businesses with no borrowing history with the bank was S$250,000. Two out of three borrowed $200,000 or less, of which over 800 borrowed $100,000 or below.
These borrowers are mainly from the services sector (27 percent), ahead of building and construction (13 percent), general wholesale (12 percent), food and beverage (11 percent) and retail (9 percent).
“Many have sound business models but are facing a cash crunch with business momentum slowing significantly due to the extended safe distancing and circuit breaker measures. In the meantime, overheads and contractual expenses still have to be met,” said DBS group head of SME banking Joyce Tee.
According to the latest East and Partners research, about two-thirds (67 percent) of the large corporates in Asia have also reportedly increased their debt funding as a way to cope with their short-term liquidity issues resulting from the coronavirus pandemic.