Small businesses offered assistance in restructuring debts

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Help is being offered to small businesses in the form of two new schemes. One initiative will help sole proprietors or partnerships restructure unsecured debt. Another scheme will help small- and medium-sized enterprises (SMEs) plan out their credit facilities across multiple banks and finance companies.

The two schemes are both from the Association of Banks in Singapore (ABS), and they come amid the concerns that companies in industries that are badly hit may be thrown into bankruptcy once the Government support measures start to waiver off as Singapore reopens and moves to Phase 3. Singapore had introduced many measures to cushion the impact of the pandemic on businesses.

The Sole Proprietors and Partnerships scheme from the ABS looks to add on to this by assisting businesses that are struggling to service loan commitments but would most likely be able to survive if given revised repayment terms. The scheme will partner businesses with Credit Counselling Singapore, a non-profit organisation, to restructure unsecured debt owed.

The other ABS initiative, called the Extended Support Scheme – Customised, is meant for SMEs with viable businesses. It has been formulated with the help of the Finance Houses Association of Singapore to help restructure a firm’s credit facilities across multiple banks and finance companies.

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