When I read today's news (see here and here) I thought, oohh that was fast! (i.e. the response to my previous post) haha.
It was indeed a welcoming development made by the Standard Chartered Bank to offer a collateral-free Business Installment Loan. I don't know what the interest rate is, but I suspect it would probably be as high as the risk involved. SCB is, after all a commercial bank. The detail of the financing scheme can be found here.
However, the scheme is not for start-ups. It is meant for businesses which have been up and running for at least 3 years. Therefore, I hope our local businesses will only participate when it is absolutely necessary.
The issue of start-up financing, thus still remains.
Salaam.
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"Therefore, I hope our local businesses will only participate when it is absolutely necessary."
That, to me, is a great advice, Ma'am! Imagine having to pay 18 percent interest on the SME scheme.
The Deputy Minister of Industry & Primary Resources is having an Open Door policy to enterprising Bruneian business people for them to simply drop in to his posh office for serious business talk. Good move but can the great Dato move mountains of bureaucracy overnight? Can he also say, okay, good business plan and here is 50k or 100k or even a million dollars as start-up capital for you to succeed in the corporate world?
Let's take a simple Bruneian traditional cottage industry business as a classic example. One entrepreneurial Bruneian woman skilled in handwoven "Songket Tenunan" business has survived 20-odd years of tough competition. Now, runs a small home-based operation with 4 Indonesian weavers (since local skilled workers can't stand the heat!). She wants to expand further but her cashflow over the years has always been, "kais pagi, makan pagi...kais petang, makan petang".
And for the past couple of weeks she has been frantically seeing one bank too many (including SCB). At the end of the day, she had to make do with a BIBD offer which is much more SME-small fish friendly!
However, her yet to be approved 30k loan good for a 1-year repayment period only won't boost her small business to the desired level. But at least, it's a worthwhile deal.
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