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Credit counselling body looks to extend help to SMEs

SINGAPORE — The Republic’s first non-profit organisation providing credit counselling for the financially distressed — Credit Counselling Singapore (CCS) — is now looking at extending help to small business owners.

SINGAPORE — The Republic’s first non-profit organisation providing credit counselling for the financially distressed — Credit Counselling Singapore (CCS) — is now looking at extending help to small business owners.

The organisation says it wants to provide a debt-restructuring programme that can help individuals pay off their business and personal loans.

For many small and medium enterprises (SMEs), the first few years of operations are critical. Unfortunately, some don’t survive. And for these business owners, their financial woes may be multiple, said CCS president Kuo How Nam.

“When a person goes into a default situation here, he most probably guaranteed the business loan. So when a business fails, he will end up with a business loan that is guaranteed, as well as personal loans,” he said, adding that the businessman was also likely to have drawn money from his credit card to pump into his failing business.

CCS said it has seen its fair share of individuals saddled with both corporate and personal debts. However, with the organisation currently only facilitating a debt-restructuring programme for personal loans, Mr Kuo is now looking at similar programmes for SMEs. He said he is considering a three-stage process to help SMEs facing financial difficulties.

First, CCS will look into whether the business can be saved. Next, if the owner decides to wind down the business, it will help the person do it in the most cost-efficient and painless manner, looking at areas such as liquidation and receivership procedures. Finally, after the assets have been sold, it will help the business owner restructure his or her personal and business loans. CHANNEL NEWSASIA

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