Company: SPPL
Filing Date: 2025-04-08
Form Type: 20-F
Source: 0001641172-25-003217
Chunk: 8

Company: SIMPPLE LTD.
Filing Date: 2025-04-08
Form: 20-F
Item: Item 3
Chunk 8
---
 rates.

Due
to our working capital requirements in support of our day-to-day operations and business expansion, we may finance all or a substantial
portion of our costs through bank loans and credit facilities, in addition to Shareholders’ equity and internally generated funds.
Details on our total indebtedness is set forth in the section titled “ Management’s Discussion and Analysis of Financial
Condition and Results of Operations

While
we believe that we have sufficient capital from our available cash resources, our cash generated from our business operations and our
credit facilities to meet our current working capital and capital expenditure requirements, we may require additional debt financing
to operate our business, implement our future business strategies and/or acquire complementary businesses or develop new technologies.

Our
ability to obtain debt financing depends on a number of factors including our financial strength, creditworthiness and prospects, as
well as other factors beyond our control, including general economic, liquidity and political conditions. There is no assurance that
we will be able to secure adequate debt financing on terms acceptable to us, or at all. In the event that we are unable to secure adequate
debt financing on terms acceptable to us, we may not be able to implement our business strategies and our business and prospects could
be materially and adversely affected as a result.

   7  

  Table of Contents  

Rising
interest rates may increase the Company’s operational costs of funds; however, the effect of these increases are mitigated by the
fixed rated terms of the Company’s material loans. Future borrowings will likely carry higher interest rates, but we currently
do not have any plans to increase our borrowings at this time.

Bank
interest rates rose aggressively over the period from April 2022 to April 2023. Interest rates in Singapore are currently one of the
lowest among the G20 countries and our operations have not been materially affected as of the date of this report. Our temporary bridging
loans carry fixed rates of 2.75% that have already been factored into our operational costs. These loans have also been substantially
paid down and will be fully settled by 2025.

Regarding
the factoring of interest rate increases against our sales model, we believe that our SIMPPLE Software product is relatively inelastic
in price, and as such we expect to be able to pass on any increased borrowing costs to our clients.

Any
disruptions, volatility or uncertainty of the credit markets could limit our ability to borrow funds or cause our borrowings to become
more expensive.