The amount of financing a company can obtain depends on several variables such as revenue, cash flow, financial position, age and credit worthiness of guarantors, company vintage and industry.
If the focus is raising cash liquidity, the maximum amount that can be obtained through the government assisted SME Working Capital Loan is $500K per entity. More financing can be obtained by applying for Business Term Loans concurrently with multiple banks to maximize the targeted amount required.

If applying for an unsecured SME Working Capital Loan or Business Term Loan, the approval process will take 1 – 3 weeks, depending on the bank.

Banks have different regulations and approving criteria enforced such as mandatory site visits by bankers, phone interviews conducted by the approving credit officer and stringent credit queries pertaining to a business.

After the loan application has been approved, it takes about 1 week for funds to be disbursed. If there is no existing relationship with the approving bank, it takes about 1 week for a corporate business account to be opened.

In total, expect a turnaround time of 3 to 5 weeks.

Interest rates offered by the bank varies depending on the lender, profile of a company and risk grade. At the time of writing, the lowest interest rate offered across all banks in Singapore is 4% flat interest rate per annum. The effective interest rate (EIR) is 7.5% per annum.

With a flat interest rate, interest is calculated on the entire principal loan amount initially borrowed throughout the loan’s term. The interest amount remains constant throughout the loan’s tenor, so you pay the same interest with each instalment. Simple interest rates are quoted to clients for simplicity to calculate a loan’s total interest over an agreed loan tenor with the banks.

Effective Interest Rate (EIR) takes into account the decreasing principal balance as you make repayments on the loan. Interest is calculated on the outstanding loan balance, which decreases with each instalment.

The EIR provides a more accurate representation of the actual cost of borrowing because it reflects the diminishing balance resulting in a more precise measure of the total interest cost. The effective interest rate is the method typically used for most loans as it better represents the borrower’s true cost of borrowing.

Business loan tenors ranges between 1 – 5 years. If applying for a government assisted SME Working Capital Loan, there is no early repayment penalty. Simply give the bank 1 month notice to redeem the loan without incurring further interest costs.

The approval criteria of a business loan application is more complex than a personal loan application. Being in a high-risk industry, incomplete or insufficient documentation, high debt servicing ratio (DSR), high outstanding across unsecured personal credit facilities, weak cash flow, low or inconsistent revenue, pending litigation or poor credit bureau scores can contribute to rejections by the banks.

When a loan application has been rejected, a company is unable to submit a new loan application to the same bank for the next 6 months – 12 months.

Options are limited for new start-ups. It is favourable for companies to have 1 – 2 years operational experience with a minimum annual revenue of $250K before securing financing from the banks. Alternate financing such as invoice financing can be considered.

However, exceptions can be given to business owners that have relevant businesses in the same industry.

Every business has its own unique challenges such as raising capital for projects, business expansion, purchasing a property, improving working capital or negotiating terms with local and overseas suppliers.

Talk to us to explore unsecured banking facilities such as Trade Financing, Invoice Financing, Business Overdraft, Equipment and Machinery Loan, Alternate Financing and secured Equity Loan backed with collateral.

We understand that every company has its own unique challenges. Talk to us. Let us provide a customized loan proposal tailored for you within 2 working days.

Our team of former bankers are equipped with the essential expertise and experience to maximize your company’s chances of approval with the banks and financial institutions in Singapore. Leverage on our connections to get the best financing deal available with the highest loan quantum and lowest interest rates.

Fast and hassle-free application process. After consultation, we will prepare the necessary documentation, cash flow analysis, financial projections, and loan proposal for the banks to ensure a smooth and timely approval.

No upfront fees are charged. Our compensation is performance-based, ranging from 3% – 5% of the approved banking facility amount. The service fee for each company is based on a case-by-case basis individually assessed and determined by our management.

Confident in what we do, no costs will be incurred in the event of a non-approval.