Singapore April 2016 – SPRING Singapore launches $500M Venture Debt Programme partnering with OCBC, DBS and UOB, announcing Ascenz Solutions as one of the three pioneer batch benefitting SMEs.
On 28 April 2016, Minister S Iswaran, together with representatives from Ministry of Trade and Industry, SPRING Singapore and OCBC paid a visit to Ascenz Solutions’ office for a meaningful meeting and discussion.
During the visit, Minister S Iswaran said the scheme will help accelerate the growth of firms using new business models and moving into new markets.
"(The programme will help) fuel the growth of start-ups and fast- growing companies, and also help financial institutions become more comfortable with understanding the risks involved," he added.
Chief executive Chia Yoong Hui said the company intends to make use of the $1 million it obtained under the Venture Debt Programme to invest in research and development, as well as expand in Europe.
He added: “For our company, we are more research-based and traditionally, if you go for any funding from the financial institute, you need collaterals and assets to pledge against the loans or the funding. For us, most of our assets are our intellectual properties, are intangible and it is very challenging for us to access all those funding. VDP offers us an alternative on that.”
He further explained that the nature of VDP allows Ascenz Solutions to strike a balance between risk taking and achieving accelerated growth.
Mr Tan Chor Sen, OCBC's head of international, global commercial banking, said that "Our experience and the broad base of customers we have allow us to understand the business better, so we are very confident and comfortable with the companies that come on board," he said, adding that with the Government taking half the risk, the risk returns "come in very nicely with our long-term plan".
Ascenz Solutions intends to use the funds to invest into product R&D, building a stronger network through B2B partnerships, and growing presence in the region and globally.