Debt Consolidation for local companies does not exist. Personal Debt Consolidation yes, but at a very high cost. In Singapore, and generally around the region, SME (Small and Medium Enterprises) lack this fundamental tool. If it succeeds funding, i'd like to invite experts from the community to get this initiative going, experts in finance (though you might have to re-orientate the way you think :p), and business. If the funding succeeds, otherwise this idea will just fade away. I don't even know if the fund raising target is realistic, but hey, its worth a shot!
Small and Medium Enterprises (SMEs) in Singapore, are the heart and soul of the country. While the economy slows, SMEs in Singapore do not have options to consolidate their debts. Of course, they may take bank loans, multiple loans, turn to loan sharks or moneylenders, which causes these companies to break down.
There simply isn't any Debt Consolidation outlet in Singapore for SMEs. At least not that i know of.
The idea is to create an organisation with a heart, which allows SMEs to stay afloat by consolidating their debts, with a nominal interest rate, or a monthly member fee, that does not strangle these SMEs, and allows them to continue their business or diversify, create employment. At the heart of it, this will be a Non-Profit Organisation, where the nominal interest rate or monthly contribution will allow this organisation to build some capital, to aid more SMEs, and pay salaries.
There are several thoughts, on how this organisation will function, which i plan to pen. I'd like experts in related fields to join me in this, if its something they feel they'd like to work on. do let me know, and hopefully, together, we might make a difference :)
That's it for now, fingers crossed :)
A few Thoughts:
1. This should be a peer to peer initiative. A web platform might be needed.
2. Pay it Forward model.
3. The organization will assist in cost cutting measures.
4. Any other business loans for a company being assisted should be approved by the organization, with all factors taken into account.