Resources for APAC/Singapore? E.g SBA loan alternatives

September 12, 2024

by a searcher from Pennsylvania State University in Singapore

I've noticed a lot of the resources and discussions online about search funds focus on the US, which is understandable.

However, as a self-funded searcher in Singapore, a lot of advice and resources do not apply to Singapore, and I was wondering if anyone has any resources? I'm hoping to start a list of resources specific to Singapore. Happy to connect with other people in this region as well. Some examples of resources might be financing options, structuring businesses, data specifically on the Singapore market

For example, one of the biggest issues I've faced is we do not have an SBA loan and I've had trouble getting leverage to buy businesses.

I've been talking to banks for loans and they seem to be very conservative. E.g they are looking for a turnover of 650K in an established company (3+ years, some even looking for 10+years) to get a loan of 100k, regardless of gross/net profit.

Does anyone have any experience using the enterprise financing scheme backed by the Singapore government to acquire companies? What sort of leverage did you get/how much % down/what was your DSCR? If not, have you tried other alternatives? Does this affect multiples you are willing to pay?

Reply by a searcher
from University of Pennsylvania in Singapore

^redacted‌ You can take a look at https://www.enterprisesg.gov.sg/financial-support/enterprise-financing-scheme---mergers-and-acquisitions (not exactly the terms that SBA loan offers unfortunately). Alternatively, seller financing is also an option.

You can take a look at this previous discussion a couple months back! https://www.searchfunder.com/post/how-to-get-debt-financing-in-singaporeasia#

Reply by a searcher
from The University of Chicago in Singapore

Hi Victoria, I've tried Enterprise Singapore M&A scheme, but ESG brings you to the same banks and they require the same things (collateral and so on).. My impression - this scheme works only if you are local (citizen or at least a PR) and have hard assets. or have a business with hard assets. Unfortunately it's not applicable for the search funds.

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