For decades, small and medium enterprises (SMEs) have been known as the backbone of the global economy. This is also true in Singapore, where SMEs make up more than 99% of all enterprises, and are responsible for about 70% of the jobs here. SMEs are defined as having an operating revenue of not more than $100 million or employing not more than 200 workers. 3 in 4 SMEs in Singapore have an annual turnover of $1 million or less, and owners of these micro enterprises and micro businesses often face the biggest challenges in cash flow.
According to the Singapore Business Federation’s latest Annual Business Survey, ensuring positive cash flow was a top priority for SMEs, second only to growing revenue. One quarter of SMEs surveyed faced a severe to moderate credit crunch, with almost half not having enough for 3 to 6 months. To ease liquidity pressures, almost half of SMEs surveyed prioritised minimising non-essential outflows, while 1 in 4 businesses considered credit facilities as a solution.
However, due to irregular income patterns and limited credit histories, many sole proprietors and SME owners are unable to access traditional business loans. Alternative options, like overdraft facilities, trade loans, and invoice financing are either costly or relatively inflexible. That is the gap the CIMB Founders Card hopes to address. It is a personal credit card that provides instant cash access with up to 114 days of zero interest (subject to a 1% processing fee).
Entrepreneurs Want Financial Flexibility And Easy Access To Cash
At the launch of the CIMB Founders Card yesterday, CIMB Singapore’s Merlyn Tsai, Head of Consumer Banking and Digital, shared that “the line between work and personal life are often blurred”. That is why the CIMB Founders Card is the first purpose-built personal credit card tailored for sole proprietors and SME owners.
In her opening address, Ms. Tsai said that “what truly matters to entrepreneurs is financial flexibility and easy access to cash”. With up to 114 days of zero interest, almost double other existing products in the market, the CIMB Founders Card offers a practical and impactful financial solution.
In addition to instant cash access with up to 114 days zero interest, other benefits of the card include:
- Up to 113 days zero interest retail transactions
- Zero foreign exchange fees for all overseas spends in foreign currencies
- Business, travel, and lifestyle benefits from MasterCard, including complimentary airport lounge access via MasterCard Travel Pass
Financial Flexibility Helps Entrepreneurs Facing Cash Flow Gaps
A panel discussion at the launch event also featured three entrepreneurs from different industries. Ahmad Syarif, co-founder of F&B brands Chulop! and Boms & Buns, Desleen Yeo, founder and designer at YeoMama Batik, and Ben Yeo, Mediacorp Artiste, co-founder of Tan Xiang, and business partner at Gen Capital. The panel was hosted by emcee Jacqueline Chow.
Syarif shared how in F&B, systems and equipment can often be costly and financially prohibitive, especially with the industry’s razor thin margins. Having extra financial resources without worrying about the added cost goes a long way, he added. Ben pointed out how having access to capital allows F&B brands like his to expand sooner than later and reap the benefits that come with economies of scale.
For Desleen, it was the seasonal nature of her fashion business that demanded more financial flexibility, since she needed to stock more inventory during peak periods such as Chinese New Year. Having extra financial resources also gave her enough runway to test new designs and see the response from the market.
The CIMB Founders Card Is Not Just For Sole Proprietors And SME Owners
One notable feature of the CIMB Founders Card is how inclusive and accessible it is. Sole proprietors and SME owners just need a minimum annual income of $30,000 to qualify, based on their Income Tax Notice of Assessment for the past 2 years. This is the standard minimum annual income for most personal credit cards in Singapore.
But the CIMB Founders Card is also open to all, not just business owners. The minimum annual income for other applicants is $50,000, while those who do not meet the minimum income can submit a fixed deposit collateral of at least $10,000, the standard for a secured credit card.
The non-waivable annual card fee for the CIMB Founders Card is $338, with a $100 add-on fee per issue for the metal version of the card.
While most personal credit cards in Singapore are designed to encourage spending and earning cashback and air mil es, the CIMB Founders Card meets the very specific need for a flexible, no questions asked, financing solution that bridges cash flow gaps.
The first1,000 successful signups for the CIMB Founders Card via the CIMB Bank website will receive a Nespresso Essenza Mini (worth $209) as a welcome gift.
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