Funding Solutions – Equipment Machinery
In Singapore 2013, despite vast opportunities and potential in doing business in Singapore we realised that a lot of SMEs owners lack the funding and technical advice to improve their business due to strict bureaucratic red tape by both government bodies and financial institutions.
There’s no doubt that many small businesses entrench themselves in survival mode, but with the recent relaxation regarding the Singapore Government Grants criteria business owners should take this golden opportunity to engage a consultant. They will be better able to understand more about how they can tap into government funding.
Signs of upgrading your Business Technology
YOUR BUSINESS IS GROWING.
If you are adding employees, departments, products or services, it may be time for an upgrade. This can be as simple as adding a new printer to handle the increase printing to upgrade your equipment to boost your operations.
YOUR ARE HAVING CONSTANT PROBLEM.
Is your operation system pertaining to machinery or info-tech process giving you problems. Are your staff constantly doing repeative work that you feel that can be solved by simply enhacing the system. Then its time to bite the upgrade silver bullet.
YOUR TEAM ROLES ARE CHANGING.
Are your employees wearing more hats and performing a wide array of task to stay ahead of your competitors. Then you may need to invest in tools that let them be productive such as tablet or customised software. Then you will need tools that enable collaboration and maintain data security.
YOU HAVE BUILT A “DUCT-TAPE” SYSTEM.
Many small businesses add technology haphazardly, eventually ending up with a moras of different hardware brands, different software versions and even different operation systems within the same company. While this piecemeal approach can work a while, eventually it is going to slow you down. When you can afford to, making an investment to upgrade everyone to a uniform standard is a wise choice.
- PROVIDING SUPPORT FOR ENHANCING OF COMPANY TECHNOLOGY.
- PROVIDING SUPPORT FOR COMPANY THAT DEVELOP ITS OWN MACHINE AND SEEK TO AUTOMATE ITS WORK PROCESS.
BEFORE YOU UPGRADE……. ASK YOUR EMPLOYEES.
What is and isn’t working for them in the current setup? You may not realize how much time your team is wasting struggling with outdated technology until they tell you.
ASSESS YOUR NEEDS.
Develop a “wish list” of equipment and software that your staff would love to have, why and how they believe it would help them do their jobs better. Not everyone needs the same technology – a marketing department may need different solution as compared to your production line.
Before making major (costly) changes, assess with an consultant whether your “Equipment” can be funded by any Grant. Assess whether can it be enhance by partial upgrading of the “Equipment”. You can also lighten the load on your Technology Expenses by doing your own in-house development or rent the technology before adpoting it.
SET A BUDGET.
Your Employees wanted the best there is in the market, but your budget may say otherwise. Find a middle ground – consult with a professional , and come up with a strategy that best work within your budget with all the functionality you need.DETER
DETERMINE THE ROI.
Take into account the time you are wasting due to crashes, slow-running software or other difficulties caused by technology that’s less than it should be. How much time can you expect to gain from the new investment? Will it help you do things you can’t do currently or automate processes that use valuable manpower now?
MAKING THE MOVE.
Decided to upgrade? One way to keep costs low is by leasing or inhouse development of technology. This options allows you to minimize the risk level towards your expenditure. If you arent tech-savvy or don’t have a suitable advisor in your business, look for someone with the relavant experiences to help guide you through the process and making the best decision. On top of that, it be great to be advise on the various grants and help that Singapore SMEs can tap on to help them in this decision.
“Purchase and Leasing of Equipment under MechC What is it?
The Mechanisation Credit (MechC) scheme helps to defray the cost incurred in technology adoption by companies to improve productivity for their construction projects.
Who is it for?
A contractor, specialist contractor or subcontractor firm incorporated and operating in Singapore will be eligible.
What is it for?
The Mechanisation Credit scheme defrays the cost of technology adoption purchasing or leasing equipment – that improves productivity by at least 20% (Standard MechC Scheme) or 30% (Enhanced MechC Scheme). The Scheme is targeted at construction firms (especially subcontractors) who are looking to using machines and equipment to improve work processes.
Depending on the impact to the project and the productivity improvement, the funding support is as shown below:
Standard MechC Scheme Enhanced MechC Scheme*
For Purchase of Equipment Equipment cost < $100,000, grant up to 50% or capped at$20,000.
Equipment cost < $125,000, grant up to 70% or capped at$25,000.
Equipment cost > $100,000, grant up to 20% or capped at$100,000.
Equipment cost > $125,000, grant up to 20% or capped at$100,000.
For Leasing of Equipment For leasing cost < $30,000, grant up to 50% or capped at $6,000.
For leasing cost < $30,000, grant up to 70% or capped at$6,000.
For leasing cost > $30,000, grant up to 20% or capped at $30,000.
For leasing cost > $30,000, grant up to 20% or capped at$30,000.
*Note: To qualify for the increase in funding level from 50% to 70%, firms will have to meet at least 30% in productivity improvement and show evidence that they are also building capability through areas such as financial standing, human resource development, certifications and awards.
Additional criteria for Enhanced MechC Scheme (To fulfill 1 item each from any 2 sections) (a) Financial Standing
- Paid up capital is more than the grant amount; or
- Revenue is more than the grant amount; or
- Annual Profit before tax for the three years preceding grant application
(b) Human Resource Development
- Minimum of 20% R1 workers per firm
(c) Certification and Awards
- ISO9001:2008 or ISO14000 or OSSAS18000/SS506 Part1;or
- Construction Productivity Award; or
- Safety management certification/award”