3 May – EXIM Thailand joins forces with TCG to provide loans with guarantees under The S1 project, elevating liquidity support services for Thai SMEs to the global market.
SMEs are considered to be an important force in driving and building the foundation of Thailand’s economic stability. And plays a role in the economy in the proportion of 34% of the gross domestic product (GDP), and also creates jobs for up to 12.6 million people, accounting for 72% of the total employment system. While in the current situation, the domestic market is becoming saturated with various factors, whether it is an aging society or high household debt, resulting in a decrease in spending power. Thai entrepreneurs, especially SMEs, who number up to 99% of the whole system or more than 3.18 million entrepreneurs, must start looking for ways to expand into foreign markets to find new customers.
The path to becoming an “exporter” may not be easy for beginners. Both knowledge and understanding of exports and important factors such as funds for product development to meet exportable standards. While access to capital is a major limitation in business operations that small entrepreneurs face and difficult to unlock. without government assistance Letting SMEs fight alone would be difficult to get small boats out of shore.
Two state-owned specialized financial institutions, namely Export-Import Bank of Thailand (EXIM BANK) and the Small Industry Credit Guarantee Corporation (TCG), have jointly launched The S1 (SMEs One) project using The expertise of both organizations in designing products and services to support SMEs in the supply chain, exports, providing both credit and letter of guarantee services quickly and in line with business needs under the service through branch channels. Co-branch and online channels Including the use of digital technology to enhance service efficiency for SMEs customers.
In addition, products have been developed especially for The S1 project in order to alleviate financial costs and provide benefits to meet the needs of entrepreneurs who are small in the business world to be able to start or expand their businesses quickly. stable and sustainable in the new world trade arena
The new service “One SMEs Loan” is a revolving loan both before and after exporting, with a maximum credit line of 3 million baht per person. The initial interest rate is 5.25% per year, using only the TCG letter of guarantee and the collateral management. ready to receive special privileges Interest discount of 0.25% per year for the first 6 months, if doing business that is environmentally friendly, receive an additional 0.25% interest rate discount per year for a period of 3 years and waive the guarantee fee from TCG (apply and approve within 31 Jul. 2023)
Dr. Rak Worakit Pokathorn, President of EXIM Thailand, revealed that The S1 project was born from the commitment of EXIM Thailand and TCG to develop the potential and uplift the little ones in every dimension, both adding knowledge, adding opportunities and To increase capital for SMEs to be strong and ready to be an important engine in driving the economy to grow steadily and sustainably. 1 Channel, 1 Process and 1 Credit Scoring meet the needs of the modern business world that emphasizes convenience and speed. Apply only once for both credit line approval and letter of guarantee. Helping entrepreneurs get funds to circulate more quickly in their business
Mr. Sittikorn Direksunthorn, Director and General Manager of TCG, said that TCG is a government mechanism that will fill the collateral for SMEs that need funds. By waiving the letter of guarantee process to help reduce financial costs and under the cooperation of The S1 project, digital systems will be introduced to help reduce the process. There will be 11 TCG branches and 9 EXIM BANK branches as a touchpoint where SMEs can apply for loans with a letter of guarantee from TCG. It is convenient for entrepreneurs and increases the opportunity to access funds for business development more easily.
Mr. Pisit Eamnoi, CEO of Cal Exco Energy Co., Ltd., a manufacturer and distributor of Motoc automotive lubricants and Mitec gear lubricants and machinery, one of the entrepreneurs interested in applying for a loan under The S1 project said that he had seen this project on social media Therefore interested and came to request to join the project. The company has been operating for 4 years, the products sold are mainly in the lower-end market. It has begun to be sold in border provinces. therefore wanting knowledge and funds for product development to penetrate the premium market more as well as wanting to expand export markets to neighboring countries Getting to know the details of The S1 project is considered very beneficial because it is a One Stop Service. Both applying to participate in the project Provide training on knowledge of exports, capital, and consult about the process of applying for a loan from EXIM BANK, where TCG will help with guarantees. causing no need to worry about finding collateral
“I think this type of cooperation is good because both agencies will use the same standards for credit approval. If the center is not included, it will be done by different people and each will have different ways of working and considerations. The S1 project is considered a model of collaboration between government agencies that can create opportunities for entrepreneurs. SMEs in all dimensions It is very beneficial to entrepreneurs,” said Mr. Pisit.
Interested SMEs can join the S1 project and the “EXIM Clinic for Little People” project to receive financial advice from both organizations for business planning. Manage debt or internal accounts and increase business liquidity For inquiries, EXIM Thailand Customer Service Center Tel. 0 2169 9999 or TCG Tel. 0 2890 9999 and in the future, the project will expand cooperation with the Small and Medium Enterprise Development Bank of Thailand (SME D Bank) and the Islamic Bank of Thailand. Thailand (ibank), which is in the process of jointly developing a working model Develop financial innovations that drive the growth of SMEs and Thailand sustainably. – Thai News Agency
Source: Thai News Agency