Singapore’s small and medium-sized enterprises (SMEs) are bearing the brunt of the Covid-19 pandemic-induced downturn. As many as 8,663 businesses closed closed The Business Times Over 8,500 business entities close shop in April; highest in recent years Read more in April this year, double the number in March. The number of new businesses formed in April—3,767—was also the lowest since 2013. SMEs are vital to the Singaporean economy, making up 99% of Singapore’s businesses.
Backs to the wall, Singapore’s SMEs see a saviour in alt lending companies
Peer-to-peer funding platforms and balance sheet lenders are seeing a surge in demand for financing from SMEs. They’re plugging the gaps left by local banks, which haven’t favoured small businesses before
After Covid-19 struck, over 8,600 businesses shut in Singapore in April, more than double the number in March
The Singapore government and local banks are trying their best to support SMEs, but it isn’t going to be enough
Alternative financiers like Funding Societies, Validus Capital, and Finaxar, have stepped in to fill this gap, offering short-tenure loans and invoice financing
These platforms are now poised to not just fund more SMEs, but also decide which ones survive and thrive post-Covid