Struggling small and medium-sized enterprises (SMEs) would benefit from an umbrella organisation to coordinate the restructuring of debt, according to registered charity Credit Counselling Singapore president Kuo How Nam.
The proposed organisation would work with all the creditors involved to assess the financial situation of the SME and develop a reasonable and practical restructuring plan.
This is important because the financial institutions which provide loans often have no way of verifying the amounts owed to the other creditors involved and do not consider additional personal debt on top of the business loans, said Mr Kuo.
Local banks confirmed that the debt owed by business owners to other financial institutions cannot b…
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