Singapore: HSBC Initiatives

Singapore Apr 09, 2020

IMPORTANT - Note from Editor:
The following is a compilation of initiatives by HSBC Bank, Singapore. All information below is directly retrieved from the HSBC website, with certain sections summarised by the Reapra team for brevity. To view the complete description of each measure, please refer to their respective links.

To ensure relevance for our readers, we are only providing measures relating to support for businesses. For the full listing of measures, please head over to the HSBC website.

Key source: HSBC website


Contents:
• Business Continuity Plan
- Enhanced Digital Support
- Financing for SMEs
- Cash Management
- Commercial Trade
• Special Financial Relief Programme (SFRP)


Business Continuity Plan

  1. Enhanced Digital Support
    • A dedicated team is ready to provide active support if you are shifting to our digital platforms.
    • Enabling digital submission of payment documentation and extending submission deadlines.
    • Acceptance of electronically submitted documentation via HSBCnet and email.
    • 90-day moratorium for the submission of originally signed documentation. • Enhanced digital support for online trade applications.
    • Urgent trade finance applications from customers to the platform will be expedited.
  2. Financing for SMEs
    HSBC is a participating bank for the following Enterprise Singapore financing schemes:

    Enterprise Financing Scheme
    • The maximum loan quantum under the Enterprise Financing Scheme - known as the SME Working Capital Loan – has been raised from SGD 600,000 to SGD 1 million.

    Temporary Bridging Loan Programme (TLBP)
    • The new Temporary Bridging Loan Programme (TBLP) has been expanded to provide additional cash flow support for all business sectors. Under this programme, eligible enterprises can now borrow up to SGD 5 million, with the interest rate capped at 5% p.a. from HSBC.

    Enterprise Financing Scheme (EFS)
    • The enhanced Enterprise Financing Scheme (EFS) – Trade Loan has been increased from up to SGD 5 million to now SGD 10 million and the government’s risk-share has also been increased from up to 70% previously, to 90% now based on the Solidarity Budget measures announced on 6 April 2020. Businesses eligible under the SME Working Capital Loan and TBLP may also apply for up to 1-year deferral of principal repayment to help manage their debt.
  3. Cash Management

    Cash Management BCP advisory service
    • A Liquidity & Cash Management BCP Advisory team has been assembled to identify and rectify gaps in your treasury BCP models, while providing timely updates and practical advice.
    • Expedited handling for urgent payments.
    • During this period of disruption, HSBC will expedite and assist with manual payment handling on a case-by-case basis.
  4. Commercial Trade
    • Relief to SGD$600 million trade loans to ease business cash flow pressure • Pre-approved 30-day extension of import trade loans maturing between 14 February and 30 April 2020 without any additional fee or penalty interest.
    • Fast-turnaround for issuance of shipping guarantees. If you are experiencing delays in receiving shipping documents from counterparties, HSBC will expedite the issuance of shipping guarantees within one hour, as opposed to the standard ‘same-day’ issuance, subject to available limits in your trade facility.
    • Waiver of amendment fees on Letters of Credit impacted by delays. If you are impacted by late shipment and late presentation of documents, the waiver of amendment fees on the Letter of Credit (LC) will enable you to change the terms of the LC to avoid penalty costs when suppliers present documents under the LC.

Special Financial Relief Programme (SFRP)

SFRP (Unsecured) will convert your existing outstanding balances into an instalment plan at an effective interest rate of 8% p.a. for tenor of up to 5 years.

Upon successfully converting your outstanding balance into an instalment plan under SFRP (Unsecured), please note that you will be unable to use your existing unsecured credit facilities until the full repayment of the instalment plan.


Updated 9 April 2020
Cover image: Coins Network

Reapra

Reapra is a venture builder and investment group based in Singapore. Through research and practice, we nurture entrepreneurs into industry leaders, and contribute towards the betterment of society.

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