EXIM Thailand Unlocks Business Restriction with Credit Line up to 2 Million Baht to “Individuals” in Export-related Businesses
EXIM Thailand has launched a new revolving credit, “EXIM Business Building Credit for Individuals” to enhance liquidity for entrepreneurs who are individuals covering producers/distributors of goods or services for exporters or domestic operators of export-related businesses. The credit scheme offers a maximum credit line of 2 million baht per entrepreneur and initial interest rate of 7.75% per annum. Availability period is from today until June 30, 2023.
Dr. Rak Vorrakitpokatorn, President of Export-Import Bank of Thailand (EXIM Thailand), revealed that global trade in the Next Normal era has opened up opportunities for and facilitated individuals’ business operations with online trade through various platforms and contracted manufacturing of raw materials to serve industries in the supply chains involving entrepreneurs from small-sized to medium- and large-sized ones. According to past statistics, in the first 3 years of operation, most SME exporters have started from being part of the supply chains, and when they have increasingly got familiar, they would then build their own brands. With transformation from Original Equipment Manufacturers (OEMs) to Original Brand Manufacturers (OBMs), these SMEs require larger amount of capital to fulfill their liquidity needs. The “EXIM Business-Building Credit for Individuals” has thus been developed by EXIM Thailand to unlock business restriction and build new entrepreneurs for Thai export supply chains to a greater extent and, thereby, boost Thai export growth in 2022.
EXIM Thailand President further said that the major problem facing small entrepreneurs at present is inadequate access to financial sources or lack of liquidity in business start-up or expansion. Viewing that businesses in preparation for start-up or initial operation period are normally overwhelmed with multiple negative factors that may put their businesses at risk and hinder their access to credit facilities while the market conditions have signaled rising trends of lending interest rates, EXIM Thailand has thus “resynergized” with Thai Credit Guarantee Corporation (TCG) in providing 100% credit guarantee for individuals who are borrowers of EXIM Business-Building Credit for Individuals in conjunction with personal or corporate guarantee. The borrowers must be entrepreneurs who are producers/distributors of goods or services for exporters, or domestic business operators with foreign exchange earnings. This credit scheme offers a maximum credit line of 2 million baht per entrepreneur and initial interest rate of 7.75% per annum (minimum lending rate plus 2% to 6%). Availability period is from today until June 30, 2023.
This new product is part of EXIM Thailand’s “Thailand Game Changer” strategy to increase the number of Thai exporters with a view to stimulating the growth of Thai export and industries, particularly new industries responsive to demand of new generation consumers, and driving the Bio-Circular-Green (BCG) economy. Thai SMEs today represent only 34% of contributors to Thai economy compared to 50% or more in case of most developed countries, e.g. Organization for Economic Co-operation and Development (OECD) countries. Under such circumstances, EXIM Thailand has strived to consistently collaborate with both public and private sectors to foster growth of SMEs from the grassroots so that they would become better positioned to directly and indirectly join Thai export supply chains and eventually link with global supply chains. EXIM Thailand has accordingly rolled out EXIM Thailand Pavilion as an E-Commerce alternative for Thai SMEs free of charge in the first year of participation and SMEs Export Studio to assist Thai SMEs in developing packaging of export goods.
Besides EXIM Business Building Credit for Individuals, EXIM Thailand has made available a range of credit schemes for juristic entities. One of these schemes is Brand New Export Financing which is an export-import revolving credit for start-up entrepreneurs and start-up SME exporters, with focus on important customers in the S-curve and eco-friendly industries, offering a credit line of up to 2 million baht per new customer and up to 5 million baht per existing customer and initial interest rate of 5% per annum. Another scheme is EXIM Biz Transformation Loan for improvement of factory, machinery or software in order to uplift efficiency in manufacturing of export goods, with a credit line of up to 100 million baht per entrepreneur, initial interest rate of 2% per annum and loan period of 7 years. Availability period is extended until June 30, 2023.
“EXIM Thailand has operated business in close collaboration with all sectors to unlock business restrictions along with exploring new opportunities for communities and businesses from the grassroots to the industrial sectors. We aim to empower and create a larger number of strong Thai economic warriors to penetrate the global market and drive sustainable development in response to the megatrends of the new world, which is a world full of uncertainties but opportunities for those who seek to capture with “courage” and “preparedness” toward the well-being and a better world for all in the long run,” added Dr. Rak.
