Choosing a PSG vendor is not just about finding a solution on the pre-approved list. The vendor you pick will implement the solution, support it after go-live, and hold you to a contract. Getting this wrong costs time, money, and sometimes the grant itself.
These red flags are pre-sales signals — things to notice and ask about before you commit to a demo, a quotation, or a contract.
Red Flag 1: No Published Pricing
IMDA requires PSG vendors to publish package pricing. If you cannot find a price on the vendor’s PSG page or on a grant comparison platform like Grantla, something is off.
Hidden pricing usually means one of two things: the price will change once they know your budget, or the PSG package has been structured in a way the vendor would rather explain in person. Neither is a good sign.
Ask: “Can you send me a written quote for the PSG package before we book a demo?”
Red Flag 2: A Slow or Broken Mobile Website
This one surprises people, but it is a reasonable question to raise. In a review of 278 PSG-approved vendors conducted in April 2026, more than half scored below 50 out of 100 on Google’s mobile speed test. That is a failing grade by most standards.
A poor vendor website does not automatically mean the product they deliver will perform the same way — SaaS platforms and marketing sites are different things. But if a vendor cannot maintain their own public-facing presence, it is worth asking what their performance standards look like for what they build and deploy for you.
Ask: “What’s your standard for the performance of what you deploy for us?”
Red Flag 3: Generic Demos That Don’t Match Your Industry
PSG solutions span more than 20 categories, from HR systems to field service management to point-of-sale. A vendor who runs the same demo for every prospect, without asking about your workflows or sector, is telling you something important: they have not done the work to understand your business.
A good vendor will ask questions before the demo. They will show you how a business in your industry — or a similar one — actually uses the solution day to day. If they cannot do that, ask why.
Ask: “Can you show me how another business in my sector uses this solution?”
Red Flag 4: No Local Support Contact
IMDA requires PSG vendors to provide implementation support and post-sales support. Watch for vendors whose support team is entirely offshore, whose contact details are a generic inbox, or who cannot name a Singapore-based person you can reach after go-live.
This matters more than it might seem. If something goes wrong after implementation, you need someone who can respond quickly and who understands the local regulatory context. Offshore-only support structures often struggle with both.
Ask: “Who is my point of contact after go-live, and where are they based?”
Red Flag 5: Pressure to Sign Before Your Grant Is Approved
PSG has a strict rule: you must receive your In-Principle Approval (IPA) before signing any contract or making any payment. Any vendor who pushes you to pay a deposit, sign a letter of intent, or commit to a start date before your grant is approved is putting your funding at direct risk. If IMDA finds out, your application may be disqualified.
Legitimate vendors know this rule well. They have been through the process many times and will not ask you to skip it. If a vendor is pushing you to move faster than the grant process allows, that pressure itself is the red flag.
Ask: “Are you okay to hold our start date until we receive ITA approval?”
Red Flag 6: No References From Similar Businesses
A vendor with no references from businesses like yours — similar size, similar sector, similar complexity — is an unproven fit for your needs. Even a short reference call with one or two existing customers can tell you more than any sales pitch.
Ask for two or three contacts you can reach directly. If a vendor cannot provide any, or if every reference is from a completely different industry, factor that into your decision. It does not mean they are a bad vendor, but it does mean you are taking a risk that a reference call would help you size correctly.
Ask: “Can you connect us with two customers in a similar business size or sector?”
Red Flag 7: Contract Lock-In That Outlasts the Grant Period
Some PSG packages are structured as multi-year subscriptions where the grant only covers year one. This is not inherently wrong — many good SaaS solutions are priced this way. The problem is when vendors bury the renewal terms or downplay what you will owe in year two and beyond.
Read the full contract, not just the PSG package summary. Understand what happens when the grant-covered period ends, what the renewal price is, and whether you can exit without a penalty if the solution is not working for you.
Ask: “What are the renewal terms after the initial PSG-covered period?”
Red Flag 8: An Outdated Solution Version
IMDA pre-approves specific versions of each solution. If a vendor is planning to deploy an older version than what is currently listed on the IMDA pre-approved solutions list, your claim may be rejected — even if you did everything else correctly.
This happens more often than it should, particularly with vendors who have been on the approved list for a long time and have not updated their implementation practice to match the approved version. It is a simple thing to verify upfront, and a legitimate vendor should be able to answer without hesitation.
Ask: “Which exact version will be deployed for us, and is it the version currently listed on the IMDA pre-approved solutions list?”
Closing Thought
None of these red flags are automatic dealbreakers. A vendor might score poorly on one point and still be the right fit for your business. What matters is how they respond when you ask. A confident vendor with nothing to hide will welcome the questions. Evasive or dismissive answers to straightforward questions are the real signal to pay attention to.
If you are comparing multiple PSG vendors, Grantla’s PSG solution search lets you see vendor pricing, solution details, and mobile performance scores side by side — before you reach out to anyone.
Related Guides
- PSG Grant Explained — how the grant works, who qualifies, and what it covers
- PSG Documents Checklist — what to prepare before submitting
- PSG Pitfalls: Common Rejection Reasons — application mistakes that cause rejection
- PSG vs EDG: How to Choose — when PSG is the right fit versus EDG
- Is PSG Worth It? — an honest assessment for Singapore SMEs
- Common Grant Pitfalls — mistakes to avoid when applying for Singapore grants
- Singapore Grants Glossary — key grant terms and definitions
- 本指南中文版 — 筛选PSG供应商时的8个警示信号（中文）
Need help with your application?
Check if you're eligible and get your document checklist in 30 minutes.
Check Eligibility