Business Term Loan
What are the Business Loan Options in Singapore?
Business loans encompass various types of loans provided to companies for their business purposes. These loans can cater to different needs, such as managing cash flow, fueling growth, acquiring machinery or equipment, obtaining property, or supporting start-ups.
Let's explore the various business loans:
Business Loan
The "standard" business loan is an unsecured loan, which means you do not need to provide any of your assets as collateral. You have the flexibility to select a repayment term of up to 5 years to settle the loan. Most major banks, including DBS, OCBC, and UOB, offer this type of loan to local businesses. However, specific requirements may apply, such as the duration of your business's operation and its revenue levels.
Working Capital Loan
The Working Capital Loan is a unique business loan designed specifically for local SMEs with a maximum of 200 employees. In collaboration with banks, the Singapore government provides financing of up to $1 million per borrower, to be repaid within a flexible period of 1 to 5 years. To be eligible for this loan, the SME must be Singapore-registered and have at least 30% ownership by Singaporeans or Permanent Residents.
Bridging Loan
This is another business financing scheme backed by the government to provide assistance to all types of businesses, not limited to SMEs, during the Covid-19 outbreak. It is accessible to Singapore-registered companies that have at least 30% ownership by local individuals. The loan amount can go up to $5 million, with a repayment period extending up to 5 years.
Start-Up Business Loan
Often referred to as a "first business loan," the startup business loan is a scaled-down version of the regular business loan, with a smaller maximum amount, typically up to $100,000. Obtaining a startup business loan is notably easier, as it requires only a few months of operation and does not necessitate a robust financial history to qualify for borrowing.