Setting up a business in Singapore is lucrative yet expensive. As one of the most expensive Asian countries to live in, coupled with its strategic port location, Singapore is a goldmine for potential businessmen and startups.
Despite the high costs of living and a saturated business market, there are numerous helplines if you are an aspiring businessman. Government subsidies and the availability of business loans make it easy to finance your small business to get it up and running.
What is a business loan?
A business loan is a broad umbrella term used to describe any type of finance loan offered to a company for financing. Business loans are typically offered by banks and financial institutions.
Business loans in Singapore can be used for a variety of business-related purposes, such as business expansion, plugging of working capital gaps, financing inventory purchases or covering rental of workspace.
What are the various business loans options in Singapore?
There are various types of business loans offered by banks and financial institutions. The type of business loan that you go with will ultimately depend on your business needs – whether you are looking to support your business capital or taking a loan to finance certain purchases.
Here are some of the more common types of business loans offered:
Unsecured Business Term Loan
An unsecured business term loan, also referred as the “standard” business loan, is the most common type of business loan offered by banks and financial institutions. This type of loan is unsecured, which means that you do not have to offer any of your assets as collateral when taking up the loan. However, most banks and financial institutions may require a guarantor, in which case it is often the company’s director.
A typical business term loan amount ranges between SGD300,000 to SGD500,000. The repayment term for this type of loan is usually anywhere between 1 year to 5 years.
SME Working Capital Loan
The SME Working Capital Loan is a government-backed business loan that is offered exclusively to local Small and Medium Enterprises (SMEs). The criteria is that the SME should have an employee headcount not exceeding 200 and must be Singapore-registered with at least 30% ownership by Singapores or Permanent Residents (PRs).
This government-assisted financing scheme was first launched in 2016 and further enhanced by the Singapore government in 2020. Under the SME working capital loan, the Singapore government partners with banks in Singapore to offer financing of up to SGD1M. The repayment term for this scheme is within 1 to 5 years.
Startup Business Loan
A startup business loan, sometimes referred to as a “first business loan”, is the child version of the standard business loan. It offers a smaller loan amount, such as SGD100,000 for those who need capital for their startup.
This type of business loan is considerably easier to get as it places less emphasis on the financial performance and history of the company due to lack of records.
Where can I get a business loan in Singapore?
If you are an aspiring businessman or need some financing for your fledgling small business, here are some banks and financial institutions in Singapore that offer business loans.
Loan Provider |
DBS Bank |
Speciality |
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Pricing |
Contact for loan rates |
Website |
|
Address | View branch locations here |
Contact |
1800 111 1111 |
Operating Hours | View branch operating hours here |
Loan Provider |
OCBC Bank |
Speciality |
|
Pricing | Contact for loan rates |
Website |
https://www.ocbc.com/group/gateway |
Address | View branch locations here |
Contact |
Contact via form here |
Operating Hours | View branch operating hours here |
Loan Provider |
UOB Bank |
Speciality |
|
Pricing | Contact for loan rates |
Website |
https://www.uobgroup.com/uobgroup/default.page |
Address | View branch locations here |
Contact |
Contact here |
Operating Hours | View branch operating hours here |
Loan Provider |
Maybank Singapore
|
Speciality |
|
Pricing | Contact for loan rates |
Website |
https://www.maybank2u.com.sg/en/personal/index.page |
Address | View branch locations here |
Contact |
Contact here |
Operating Hours | View branch operating hours here |
Loan Provider |
Standard Chartered Bank |
Speciality |
|
Pricing | Contact for loan rates |
Website |
https://www.sc.com/sg/ |
Address | View branch locations here |
Contact |
Contact here |
Operating Hours | View branch operating hours here |
Loan Provider |
HSBC Bank |
Speciality |
|
Pricing | Contact for loan rates |
Website |
https://www.hsbc.com.sg/ |
Address | View branch locations here |
Contact |
Contact here |
Operating Hours | View branch operating hours here |
Loan Provider |
Citibank |
Speciality |
|
Pricing | Contact for loan rates |
Website |
https://www.citibank.com.sg/portal/bluehome/index.htm |
Address | View branch locations here |
Contact |
Contact here |
Operating Hours | View branch operating hours here |
Loan Provider |
Multiply Capital |
Speciality |
|
Pricing | Contact for loan rates |
Website |
https://www.multiply.com.sg/about |
Address | 10 Eunos Rd 8, #09-04 Singapore Post Centre, Singapore 408600 |
Contact |
65 8775 0069 |
Operating Hours | Mon – Fri: 8.30am – 6pm |
Loan Provider |
Aspire |
Speciality |
|
Pricing | Contact for loan rates |
Website |
https://sg.aspireapp.com/ |
Address | #04-04, 01 Syed Alwi Rd, 207628 |
Contact |
65 3165 1500 |
Operating Hours | Mon – Fri: 9.30pm – 6.30pm |
Loan Provider |
Validus Capital |
Speciality |
|
Pricing | Contact for loan rates |
Website |
https://validus.sg/ |
Address | 6 Shenton Way, #17-09 OUE Downtown 2, Singapore 068809 |
Contact |
65 6100 0610 |
Operating Hours | Monday – Friday 9.00AM – 6.00PM |
Loan Provider |
Minterest |
Speciality |
|
Pricing | Contact for loan rates |
Website |
https://www.minterest.sg/ |
Address | 1 Raffles Boulevard, Crescent 1, Level 2 Suntec City, |
Contact |
65 6386 8623 |
Operating Hours | Mon – Fri: 9am – 6pm |
Loan Provider |
MoolahSense |
Speciality |
|
Pricing | Contact for loan rates |
Website |
https://www.moolahsense.com/ |
Address | 150 Cecil St, #03-00, Singapore 069543 |
Contact |
65 6871 8780 |
Operating Hours | Daily, 9am – 6pm |
Loan Provider |
Grab Singapore |
Speciality |
|
Pricing | Contact for loan rates |
Website |
https://www.grab.com/sg/merchant/finance/hub/products/business-loan/ |
Address | 28 Sin Ming Lane, #01-143, Midview City, Singapore 573972 |
Contact |
Contact here |
Operating Hours | 65 6655 0005 |
Loan Provider |
Capitall |
Speciality |
|
Pricing | Contact for loan rates |
Website |
https://capitall.com.sg/business-loan-singapore/ |
Address | 35 North Canal Road, #02-01 Singapore 059291 |
Contact |
65 6333 [email protected] |
Operating Hours |
Mon – Fri: 09:00AM – 6:00PM Sat, Sun and Public Holidays: Closed |
Loan Provider |
RHB Group |
Speciality |
|
Pricing | Contact for loan rates |
Website |
https://rhbgroup.com.sg/business/loans/sme-business-loan |
Address | View branch locations here |
Contact |
Contact here |
Operating Hours | View branch operating hours here |
Loan Provider |
Capable Loans |
Speciality |
|
Pricing | Contact for loan rates |
Website |
https://www.capable.loans/about-us/ |
Address | Online business only |
Contact |
Contact via form here |
Loan Provider |
Capital Match |
Speciality |
|
Pricing | Contact for loan rates |
Website |
https://www.capital-match.com/borrow.html |
Address | 1 Changi Business Park Crescent, #02-17 Plaza 8 @ CBP, Podium C, Singapore 486025 |
Contact |
65 9429 9471 |
Operating Hours | Mon – Fri: 9am – 6pm |
Loan Provider |
SingBusinessLoan |
Speciality |
|
Pricing | Contact for loan rates |
Website |
https://www.singbusinessloan.sg/ |
Address | Online business |
Contact |
Contact via form here |
Loan Provider |
Raffles Credit |
Speciality |
|
Pricing | Contact for loan rates |
Website |
https://www.rafflescredit.com.sg/ |
Address | 17A Circular Road, Singapore 049373 |
Contact |
6562351788 |
Operating Hours | Mon to Fri: 10.30am to 8pm Sat & Sun: 10.30am to 4.30pm |
Loan Provider |
Lending Bee |
Speciality |
|
Pricing | Contact for loan rates |
Website |
https://www.lendingbee.com.sg/business-loans/ |
Address | View branch locations here |
Contact |
View branch contact details here |
Operating Hours | View branch operating hours here |
What is the eligibility criteria to apply for a business loan?
The eligibility criteria to apply for a business loan depends on the type of business loan you require as well as the nature of your company.
If you are running a small startup and require some startup capital, you may opt for a startup business loan. In order to qualify, your business needs to be registered and operating in Singapore. At the same time, the duration of business operations should be between 6 months and 2 years.
If you are intending to apply for an unsecured business loan, then the criteria varies between the respective banks and financial institutions. Before applying for a business loan, it is best to to find out the eligibility criteria and determine if your business nature and operations is eligible.
What is the application process for a business loan?
Here is an overview of the typical process when applying for a business loan in Singapore:
- Apply online via the bank or financial institution’s website
- Receive a call back from the bank/financial institution to understand more about your business or company
- Submit the requested documents for verification. The main documents are:
- ACRA business profile information
- Latest Notice of Assessment (NOA) of all the Company Directors
- Latest Credit Bureau Singapore (CBS) Report Of All Directors
- Latest 2 Years Company’s Financial Statements
- Latest 6 Months Of Bank Statements
- Application process for approval
- Presentation of business loan proposal for clarifications or sign-off
- Signing of documents and disbursement of funds
What affects the outcome of my business loan application?
While there are various business loans available, some of them even backed by the Singapore government, there may be instances whereby your business loan application is rejected.
The downside is that you will typically only find out the outcome of your business loan application after the long processing time.
Here are some of the possible reasons why your business loan application may be unsuccessful:
Track record of existing business
Getting a business loan when your business is just starting out or not profitable over the past years can be tough. Most banks and financial institutions require your business to be operating for a bare minimum of at least 6 months in order to qualify.
Even if your business is well-established for several years, they may require you to submit documents of your company’s annual revenue to verify that the business is profitable in recent years.
Credit score
Banks and financial institutions may also decide to reject your business loan application if the company directors or the business itself has a poor credit score.
A low credit score may cause business loan providers to question your ability to repay your loan. If they are not confident that you are able to repay the loan based on your credit history, the less likely your business loan application will be approved.
Editor’s Note:
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