CIMB Singapore unveils FlexiPay loan with flexible SME repayment terms

Repayments are automatically deducted as a percentage of daily deposits.

CIMB Singapore has launched CIMB FlexiPay, a loan product that allows small and medium-sized enterprises (SMEs) to make repayments based on their daily revenue.

The scheme, the first of its kind in Singapore, is intended to ease cash flow pressures for businesses with seasonal or unpredictable income.

Repayments are automatically deducted as a percentage of daily deposits according to a business’s chosen holdback rate.

For example, if the rate is set at 5% and daily earnings reach US$780 (S$1,000), then US$39 (S$50) will be repaid. No repayment is required on days without revenue.

The product carries a single upfront fee with no interest, prepayment penalties, or late charges. Applications and loan acceptance can be completed digitally without the need for physical forms.

Benjamin Tan, head of commercial and transaction banking at CIMB Singapore, said FlexiPay was designed to provide SMEs with greater flexibility and transparency in financing.

He added that the solution aims to remove barriers that businesses typically face in securing bank loans.