As you know, Singapore is very popular just because they provide favorable working conditions to both small and medium enterprises. These include some special incentives and tax credits like investment allowance, pioneer tax incentives, merge, grants and acquisitions allowance, and more like this. The government of Singapore supports their small and medium enterprises in many ways, the government offers grants and loans that mean very much for the Singapore companies.
With this help, these companies overcome common obstacles like the shortage of proper capital due to which these companies don’t support their daily expenses, but by taking advantage of these grants and loans they will be able to support daily expenses. Below is a list of all the startup funding grants in Singapore that are offered by the Singaporean government. You can get help from these grants and loans for growing and establishing your business in Singapore.
Grants for SMEs in Singapore
- Productivity and innovation credit
This is the most popular grant in Singapore that you can take advantage of to grow your business in Singapore. This grant is offered by the inland revenue authority of Singapore to support daily expenses of your business. If you are establishing your business in Singapore, then as per this scheme you can get up to 400% tax deduction totaling $400,000. But you need to know that this scheme will expire immediately, so it’s important to take full data about this scheme.
- Financial sector technology and innovations scheme
This is the most useful grant that you can take advantage of in Singapore which is offered by the monetary authority of Singapore. The main aim of this grant scheme is to support innovations and salvage your business from issues. If you decide to take help from this grant then this will provide you with financial institutions and that you need very much to establish your modern innovation lab in Singapore. As per this scheme, you will get the 50%to 70% of the total calculated qualifying cost from this authority. But this should not exceed more than $200,000. And this period is capped at 18 months.
Loans for SMEs in Singapore
- Accounts receivable loan
This is a form of working capital loan which depends on the SME account receivables which include cash or invoices that are owned by the clients to the company. While a major benefit you will get while using this loan is that this will solve your problem of cash that is engaged in unpaid invoices and debts, this will lead to the improvement of cash flow which helps you much.
- Line of credit loan/overdraft loan
This type of loan is a very easy and helpful loan type that helps you in starting your business in Singapore.This bank overdraft loan provides much more advantage to you here you can get financial support from an individual lender or bank to establish your business. The loan provides you with services to help your small business grow and contribute to the total economy of the country. Here you will be also allowed to repay the loan amount at any point and the benefit is that you will not have to incur any early repayment penalty. Learn more about grants available for SMEs here.