Business Debt Management

In Credit Counselling Singapore’s (CCS) experience of providing financial counselling for individuals, we have come across many instances where business owners have given personal guarantees when obtaining financing or used their personal credit facilities to finance their firms’ operations. Should their businesses fail, their personal assets are inevitably affected. Often, the financial distress experienced leads to anxiety and depression, and in some cases, breakdown of marriages and families.

CCS Business Debt Management is focused on helping micro and small business owners facing financial difficulties ease their cashflow by facilitating repayment arrangements with their creditors for their business loans, where suitable.

In cases where the business is operated as a Sole Proprietor or Partnership, CCS has launched the Sole Proprietorships and Partnerships (SPP) Scheme to help owners restructure their unsecured business debts, where applicable.

In cases where businesses have ceased or are in the process of ceasing, CCS Business Financial Counsellors provide advices on the business owner’s obligations and options to address financial liabilities remaining. Where feasible, CCS may facilitate an Enterprise Debt Management Programme (EDMP). EDMP is a debt repayment plan that proposes an affordable payment arrangement of the remaining unsecured business debts to the creditors. An EDMP is facilitated on a best effort basis, in the hope of helping the business owner avoid personal insolvency.

In addition to business debts, if the owner also faces difficulties in servicing unsecured personal debts (for example, credit card debts), CCS may facilitate an affordable repayment arrangement through its consumer Debt Management Programme (DMP), where applicable. A CDMP is a debt repayment plan with extended tenure and moderated interest rate.

Our programmes are useful for business owners who lack the financial knowledge and resources to engage a professional consultancy or to access other remedies. They may also be afraid to approach their creditors for fear that it may trigger early recalls of their loan facilities.


Mr Kuo How Nam, Chairman
Credit Counselling Singapore