DBS Sustainable Financing Helps SMEs Go Green
DBS Group Holdings Ltd
DBS has introduced an innovative hybrid financing solution designed to empower small and medium-sized enterprises (SMEs) in their quest for sustainability.
This groundbreaking initiative, known as the DBS Eco Renovate Loan, offers SMEs an expanded avenue for securing capital to support their sustainability endeavours.
The DBS Eco Renovate Loan opens doors for SMEs by providing them with the option to borrow up to 100% of the expenses associated with implementing resource-efficient or energy-optimisation solutions in the context of environmentally conscious renovation projects.
What's more, these loans come with preferential interest rates, making sustainability more accessible to SMEs. To make things even more convenient, companies have the flexibility to combine this eco-friendly loan with a traditional commercial loan to cover the entirety of their renovation financial needs.
Koh Kar Siong, Group Head of Corporate and SME Banking at DBS emphasised the growing awareness among SMEs regarding the significance of integrating sustainable practices into their operations to stay competitive in an increasingly green-focused economy.
However, conventional sustainable financing mechanisms are typically tailored for more giant corporations, which have the resources and expertise to track and measure their sustainability progress. The Eco Renovate Loan catalyses to bridge this financing gap, offering SMEs a straightforward and efficient solution to initiate their sustainability journeys.
In keeping with internationally recognised Green Loan Principles, the Eco Renovate Loan is just one of the many financing solutions that DBS has introduced to encourage SMEs to embrace sustainability. These encompass a range of options, including electric vehicle financing, sustainable trade financing, and renewable energy financing, all designed to expedite the adoption of sustainable practices by SMEs.
The application process for the Eco Renovate Loan is user-friendly, enabling companies and contractors to identify, monitor, and implement sustainability-related initiatives within their renovation projects using a simplified checklist. To complete the process, companies must submit a pre-renovation list, supported by documents such as quotations and invoices to serve as proof of the work completed post-project.
In parallel with this financial support, DBS is joining hands with SMEs to empower them in their pursuit of success within the green economy. A notable example is their recent announcement of a two-year partnership with SkillsFuture SG, offering valuable sustainability skills training to SMEs.
Additionally, companies can engage in a comprehensive four-stage programme under DBS's 'ESG-ready' initiative, where they can gain the knowledge and tools necessary to develop a sustainability strategy, put it into action, and validate their ESG performance through third-party assurance and reporting. This multifaceted approach illustrates DBS's commitment to nurturing sustainability among SMEs.
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Source: IBS Intelligence
