If a supplier wants a deposit before your company submits an EDGE application, check the funding implications before paying. A commercially normal deposit can still make a proposed project retrospective for grant purposes.
Raffles Corporate Services works with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice. This article is general information only and is not legal advice.
Enterprise Singapore’s EDGE FAQ treats work started or payments, including deposits, made before application submission as retrospective. Submitting an application also does not guarantee approval. Those are two different risks to consider.
Write down the actual sequence
Record the proposed application submission, order, deposit, start of work and delivery dates. Include any work already performed, even if no invoice has arrived. Ask the supplier to explain what it considers commencement and what the deposit commits the company to buy.
Do not rely on a sales representative’s assurance that the company can “sort out the grant later”. The authorised applicant should review the relevant activity conditions and obtain clarification where the facts are uncertain.
Read the purchase contract independently
Check whether the quotation becomes binding on signature, whether a deposit is refundable and what cancellation charges apply. A grant rejection may not release the company from its contractual obligations. A handwritten comment about expected funding may also be insufficient to change the supplier’s standard terms.
Example: a limited-time installation slot
A vendor offers a discounted installation slot if a deposit is paid this week. The director needs to compare the saving with the risk of losing grant support and the cost of cancellation. An attractive discount is not evidence that a pre-application payment is eligible.
Prepare a budget without reimbursement
Calculate the full contract cost, tax, implementation work, staff time and continuing fees. Identify whether the company can proceed if funding is delayed or refused. The cash forecast should not treat an unapproved grant as cash available to pay the supplier.
- What must be paid before delivery?
- What depends on implementation milestones?
- What is payable if the company cancels?
- Which costs are outside the proposed grant scope?
- Can the company fund the project entirely itself?
Give the director both the commercial proposal and the timing review, so approval of the purchase is informed.
If the deposit has already been paid
Preserve the invoice, bank record, contract and chronology. Do not change invoice dates or ask the supplier to replace documents to make the project appear uncommitted. Review the actual position with the official agency and appropriate advisers before making any funding representation.
If the project is ineligible, the company still needs to manage its contract, budget and accounting records. A grant issue does not erase a genuine payment or the obligations arising from it.
Keep the application evidence
Retain the submitted application and timestamp, supporting quotation, relevant correspondence and the final agency decision. If the company proceeds after submission but before approval, record who accepted the commercial risk and on what basis.
Is payment after submission automatically supported?
No. The application still needs approval, and the expenditure must satisfy the relevant conditions.
Can a supplier promise that the deposit will be reimbursed?
A supplier cannot guarantee the agency’s decision. Review the official rules and the company’s own liability.
Related guidance
Read our guides to grant record keeping and accounting for government grants, or explore our business grant resources.
Help with the company’s grant records and contracts
Raffles Corporate Services can help organise supporting records and review the accounting implications of a proposed project. For advice about contractual obligations, we can arrange assistance through our associated law firms. Email [email protected] or WhatsApp +65 8501 7133. Applications and claims must be submitted by the applicant company’s own authorised staff through the prescribed process; our support does not guarantee grant approval.