OCBC Expands Entrepreneur Loan Scheme to US$4 Billion Across Region

OCBC Bank is scaling up its financing initiative for serial entrepreneurs, targeting S$5 billion (US$4 billion) in lending by 2028 as it expands the scheme beyond Singapore into Malaysia, Indonesia and Hong Kong.

Launched in 2019, the programme is designed specifically for entrepreneurs managing multiple early-stage businesses. It stands apart from conventional lending by evaluating the creditworthiness of the entrepreneur and their portfolio of businesses collectively, rather than assessing each company in isolation. To date, the bank has disbursed S$1.5 billion to over 1,800 business founders in Singapore and Malaysia.

The expansion reflects OCBC’s confidence in the resilience of serial entrepreneurs, even amid global trade uncertainties. The scheme went live in Malaysia in early July following a nine-month pilot and is scheduled to launch in Hong Kong in 2025, followed by Indonesia.

Anna Chang, OCBC’s head of middle market and services, global commercial banking, said entrepreneurs running multiple ventures are statistically 30% less likely to default compared to single-venture business owners, based on the bank’s internal portfolio data.

Financing is available only to companies where the so-called “key man” holds a majority stake. Loan guarantees are limited to the borrowing entity, and tenures range from four to 18 years depending on collateralisation.

One in three new companies incorporated in Singapore is founded by an entrepreneur who already owns at least one business. In Malaysia, nearly half of OCBC’s small business clients are serial entrepreneurs. The bank is also offering tailored financial solutions for high-growth sectors such as healthcare, education, and food and beverage—areas where serial founders are most active.

Linus Goh, OCBC’s head of global commercial banking, said the holistic approach allows the bank to better assess risk and deepen its relationship with clients. “When you have the whole relationship together, the key man tends to be very upfront,” he noted.

Entrepreneurs such as Adam Piperdy, founder of the Unearthed Group, have seen tangible gains under the initiative. Piperdy, who operates nine companies in the events sector, cited faster financing and fewer administrative hurdles as key advantages. His firm, known for managing the Orchard Road Christmas Festival, has reported over 30% revenue growth annually for the past two years and has increased its event count nine-fold from 2020 to 2024. Expansion into Malaysia, Thailand, Vietnam and Indonesia is planned within the next 12 months.

For Lionel Lee, director at Westpoint Transit, the bank’s support enabled the acquisition of 30 new buses last year and accelerated the company’s hiring plans. Lee, who oversees five family-run firms in the logistics and transport sector, said the bank’s proactive interest in his expansion goals offered a financial foundation that was previously lacking.

-The Strait Times

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