Credit Counselling Singapore mulls debt restructuring programme for SMEs

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The Republic’s first non-profit organisation providing credit counselling for the financially distressed – Credit Counselling Singapore (CCS) – is now looking at extending help to small business owners.

The organisation says it wants to provide a debt restructuring programme that can help individuals pay off both their business and personal loans.

For many small and medium enterprises, the first few years of operations are critical. Unfortunately, some don't survive - and for these business owners, financial woes may be multiple, said Mr Kuo How Nam, President, CCS.

CCS said it has seen its fair share of individuals saddled with both corporate and personal debts. However, with the organisation currently only facilitating a debt-restructuring programme for personal loans, Mr Kuo is now looking at similar programmes for SMEs.

Mr Kuo said he is considering a three-stage process to help SMEs facing financial difficulties.

First, CCS will look into whether the business can be saved.

Next, if the owner decides to wind down the business, CCS can help them do it in the most cost-efficient and painless manner, looking at areas such as liquidation and receivership procedures.

Finally, after assets are sold, the next step would be to help the business owner restructure both his personal and business loans.

Credit Counselling Singapore said this proposal will take some time before it is ready to be launched, as it needs to train its officers in the area of handling corporate loans - for example, being able to look at balance sheets or profit and loss statements.