DBS unveils capital loan program to jump start small businesses

It will bridge the credit gap faced by businesses.

Budding enterprises can now speed up their growth process as DBS launches its mLoan program, seeking to plug the credit gap faced by small businesses which are unable to secure short-tenor loans.

According to a press release by DBS, interested businesses can now loan up to $100,000 with no collateral required.

DBS adds that this solves the problem of small businesses who tend to be underserved as they lack audited accounts and personal income statements, making it difficult to credit assess them.

“Instead, banks prefer to lend to companies which can provide collateral, have an established operating track record and at least two years of audited accounts,” DBS said.

The statement added that DBS will be working with AMP Credit Technologies to be able to use electronically verifiable cash flows, such as card payments, to assess each application.

“These electronic cash flows are studied and measured against sector models of payments and collections and a credit assessment is made accordingly,” the statement added.