OCBC Launches New Loan Service for Serial Entrepreneurs
Serial entrepreneurs can now obtain a loan from OCBC Bank even before their new start-up has been incorporated. This is possible with the launch of OCBC's Serial Entrepreneur service.
OCBC has launched its Serial Entrepreneur business following a 12-month pilot programme which started in October 2017.
With 1 in 3 new businesses incorporated in Singapore from 2015 to 2017 belonging to an entrepreneur running at least one business, the Singapore-based lender is optimistic it can target and serve serial entrepreneurs on their business journeys.
Extensive Mapping Exercise
The inception of this came after an extensive mapping exercise of customer journeys comprising more than 500 conversations, where the banking team listened to and understood the motivations and challenges of serial entrepreneurs.
These insights were then used to curate solutions that better support serial entrepreneurs, especially with their new start-ups.
«Having this holistic view has enabled us to provide serial entrepreneurs with enhanced credit support and curated solutions for their new ventures, to help them supercharge their growth,» said Christie Chu, Head of Emerging Business, Global Commercial Banking at OCBC Bank.
Improved Model Of Lending
The bank’s new credit approach that takes a comprehensive view of the entrepreneur’s experience, business track record and overall business strategy across his or her group of companies. This method greatly improves upon the prevailing industry model which evaluates each business on a standalone basis based on their track record and financial credibility which makes it difficult for start-ups less than two years old to obtain financing – even if the founder has operating businesses and a proven track record.
Lena Lim and Wendy Tan, co-founders of childhood education brands Josiah Montessori and My Learning Haven, are serial entrepreneurs who have benefited from this new credit approach. During the pilot, over S$100 million in business loans had been approved.
Bringing Specialists Together
The serial entrepreneur business brings together specialists in cash management, mezzanine capital and wealth management, with a relationship manager to form an integrated support network for serial entrepreneurs.
Cash management specialists were integral in guiding a select group of serial entrepreneurs to become one of the first in Singapore to start using the funds transfer service, PayNow, for their businesses. Exclusive economic and equity outlook events with the bank’s wealth management specialists were also organised for the serial entrepreneurs, the bank said.
