Here’s our quick public service announcement on DBS quick finance. If you haven’t already noticed or if you are not a DBS client, DBS just launched its new AI-driven SME lending program called DBS Quick Finance which offers loans up to $300,000. Please note that this is only applicable to DBS retail SME client and the product is available via the it’s banking platform IDEAL. You may read our review of DBS IDEAL.
Few of its key and most prominent features are its promise to 1 min application and 1 second approval + instant disbursement in some cases. This is all done without any additional paperwork involved just like a personal loan. What this means is that SMEs can now instantly check their credit limit and make quicker business decisions such as committing into a new project.
According to DBS, the eligibility is determined by an AI-driven program that analyses existing banking activities of the client. Separately the bank has also tied up with Xero to access transactional records for credit assessment. This allows DBS the ability to digitally conduct credit assessments and automatically determine the approved amount, tenor and rate for a client.
This is a good reminder for SMEs to maintain a good crediting record of their revenues in their banks and promptly update accounting records on file. One quick and easy way to fully digitize your receipts is through the use of PayNow, this reduces the temptation to the daily cash for payments which erodes your total bank crediting. Another tip is to eliminate cheque receipts and payments but instead use bank transfers. This helps the bank better identify the counterparty that you are dealing with and better assign the spend to a proper category. Our guide to improve your chance for a bank loan might be a good start.
The application process is fairly straightforward, however do note that only selected clients that are eligible and can see the below mentioned banner. Selected clients must have an existing DBS relationship with preferably more than 3 months of transactions.
Step 1: Log into IDEAL
Step 2: Click on the Quick Finance banner on your dashboard to provide consent to access your credit bureau record
Step 3: View Offer
Step 4: Accept Loan offer
Step 5: Grab a coffee, and receive your disbursement
DBS customers who are selected are proactively offered products from overdraft to working capital loan. Interest rates differ according to credit assessments but from what we understand, rates can start from 8.75% (EIR) p.a. with a tenor as long as 5 years.
If you are not a DBS customer, fret not. While DBS quick finance is not yet applicable to you. You can still access the SME working capital loan through Lendingpot. Our access to the banking network in Singapore is unrivalled and evidenced through our success in the placement of more than $15mil of loans for SMEs in 2022 alone (majority of them micro and small enterprises). Apply to DBS through Lendingpot to gain access to the business loans and obtain approvals in less than 2 weeks. We can also help advise on other loan products to increase your approval, this includes invoice financing or property backed financing.
Benjamin heads up Lendingpot with a background in all things SME. He was previously a commercial banker at Citi with experience in Relationship management, Credit Risk, Trade Operations and Corporate FX sales; and understands the difficulties SMEs face in this opaque world of SME financing.