- Comprehensive Guide to Licensed Money Lender in Singapore 2023
- What To Do When You're Being Bullied At Work: Steps For Employees
- Banks in Singapore - Do They Reimburse Losses from Scams and Fraud?
- Comprehensive Guide To Benefits and Drawbacks of Early Mortgage Payoff In Singapore
- Anti-Money Laundering (AML) in Singapore: What are the Compliances and Regulations? [2023 Edition]
- What SME Owners Need To Know: Comprehensive Guide To Upcoming Singapore GST Rate Adjustment 2024
- Who Should You Vote For? A Complete Guide To The Presidential Election 2023
- Best Telegram Channels Business Owners in Singapore Should Join
- Can S Pass and EP Holders Incorporate a Company in Singapore?
- What's New For Your Business Passions: WhatsApp Channels In Singapore
DBS Temporary Bridging Loan
4.75 % E.I.R per year
Within A Week
DBS Temporary Bridging Loan is one of the start-up friendly loans that can enable young entrepreneurs to easily grow their business with its low minimum turnover and incorporation criteria and only 3 months' bank statements required for credit analysis.
Smart Towkay Editor's Review
Calculate Your Business Loan Repayment Instantly
Min Turnover Criteria: < S$150,000
Fast Approval + Disbursement Turnaround Time
Maximum loan up to $3M
Maximum 5 years repayment
Government risk-sharing 70%
Government risk-sharing of 70% with participating financial institutions.
Company Operating Account Statements for last 6 months
Directors' & Shareholders' NOA for last 2 years
Company's Financial Report for last 2 years
Directors' & Shareholders' NRIC (front and back)
- Processing Fees:
1% of the loan amount for Existing DBS account holder
1.5% of the loan amount for New To Bank customers
- Annual Interest Rates: 4.5% effective interest rates
- No Lock-In period throughout the Loan Tenor
- No Annual Fees
|GOLDBELL FINANCIAL SERVICES Temporary Bridging Loan|
5.5 % E.I.R per year
Max. Loan Amount
|ORIX LEASING TEMPORARY BRIDGING LOAN|
5 % E.I.R per year
Max. Loan Amount
|SINGAPURA FINANCE TEMPORARY BRIDIGING LOAN|
5 % E.I.R per year
Max. Loan Amount
Benefits of Applying Through Us
HIGHER APPROVAL RATE
As a team of ex bankers, we are very familiar with credit criteria of individual banks with a solid track record of >80% approval rate.
HASSLE FREE APPROACH
Leave the application process to our specialists while you focus your resources on your core business.
FASTER TURNAROUND TIME
Tired of waiting for unresponsive bankers revert? Your application is our priority, reduce processing time by 3-5 working days through us!
RISK FREE PROCESS
No upfront fees, no fees applicable if we’re not enable to secure financing for your company. Performance guarantee, pay only for results!
DBS’s Temporary Bridging Loan is an initiative between the Singapore Government and DBS to help SME’s and businesses in Singapore. This product is for businesses that have been registered in Singapore and are operating with at least 30% Singaporean or Permanent Resident shareholding.
As announced on 12 Oct 2020, TBLP will be extended from 1 Apr 2021 to 30 Sep 2021. Under this extension, the Government’s risk-share on the loan will be lowered to 70% with the maximum loan quantum lowered to S$3 million. This is to calibrate the support for businesses as the economy gradually recovers.
DBS' Temporary Bridging Loan is suitable for young companies that are less than 2 years old (as most other Participating Financial Institutions have a minimum incorporation requirement of > 2 - 3 years old) and require only 3 months of bank statements for credit analysis.
The TBLP was introduced to help the enterprises access working capital.
As announced in the Solidarity Budget on 6 Apr 2020, the Government will enhance the TBLP further with 90% risk share. The enhancement will apply to new applications initiated from 8 April 2020 until 31 March 2021. For applications that are pending approval from PFIs, enterprises are advised to speak to their PFIs on their eligibility.
As announced on 12 Oct 2020, TBLP will be extended from 1 Apr 2021 to 30 Sep 2021. Under this extension, the Government’s risk-share on the loan will be lowered to 70% (90% currently) with the maximum loan quantum lowered to S$1 million . This is to calibrate the support for businesses as the economy gradually recovers.
Yes, SMEs can approach different financial institutions to apply for Temporary Bridging Loans. However, the total aggregate borrowing under the scheme from different Financial Institutions cannot exceed S$1,000,000.
The participating Financial Institutions for the Temporary Bridging Loan Scheme are:
CIMB Bank Berhad
DBS Bank Ltd
ETHOZ Capital Ltd
FS Capital Pte Ltd
Goldbell Financial Services Pte Ltd
Hong Kong and Shanghai Banking Corporation
Hong Leong Finance Ltd
IFS Capital Ltd
Maybank Singapore Ltd and Malayan Banking Berhad, Singapore Branch
ORIX Leasing Singapore Ltd
Oversea-Chinese Banking Corporation Ltd (OCBC Bank)
Resona Merchant Bank Asia Ltd
RHB Bank Berhad
Sing Investments & Finance Ltd
Singapura Finance Ltd
Standard Chartered Bank
United Overseas Bank Ltd
Validus Capital Pte. Ltd.
Temporary Bridging Loan was introduced in response to the COVID-19 outbreak, to help SMEs manage their immediate cash flow needs.
Eligible SMEs can borrow up to S$1 million, with an interest rate capped at 5.5% per annum. SMEs that require help beyond the Temporary Bridging Loan can also tap on the Enhanced Working Capital Loan, which has been further enhanced to support loans of up to S$500,000.
Different banks have different risk appetites at different times, hence their lending policies can differ. A credit score in risk grade HH might be outrightly rejected by some financial institutions while others like Maybank might approve the application (subject to Company Financial Profile and mitigation of bad Credit Bureau Score.)
Financial Institutions like Ethoz and Orix might not even need to run Directors' CBS search if entities have more than 2 Directors/ Shareholders.
The best thing you can do is to improve your credit score as much as you can and keep it at that highest possible level. You may wish to approach us for advice.
Find out more about how your personal credit bureau affects your business loan application here.
All eligible enterprises applying for the Temporary Bridging Loan are subject to assessment by Participating Financial Institutions (PFIs).
As different PFIs have different lending criteria and assessments, one rejection might not similarly mean rejection from others. But do note that any failed application with a PFI will result in a waiting period of 6-12 months before the business can re-apply with the same PFI.
To avoid this, one can approach a platform like us to assist with the company's financial assessment before they submit to PFIs.
Businesses that require further support may approach Enterprise Singapore at (65) 6898 1800 or firstname.lastname@example.org for assistance.
Site visit inspection is part of the Participating Financial Institution's due diligence to make sure applicants are running a proper and legitimate business.
The site visit includes but is not limited to:
1. Proper Company signage and tenancy agreement sighted for Company registered address
2. Sighting of Original Company operating account statements
3. Selfie with Company key person
4. Taking pictures of company premises, inventory, staff, etc.
We wish that were the case too! But, sadly, borrowers and guarantors are responsible to repay 100% of the loan amount.
In the event of default, Participating Financial Institutions are obligated to follow their standard commercial recovery procedure, including the effect of the personal guarantee (which means PFIs will foreclose, auction off any valuable assets of the company and guarantors), before they make a claim against Enterprise Singapore for the unrecovered amount in proportion to risk-share.
We get this enquiry a lot from businesses running as sole-proprietorships with no business account.
Participating Financial Institutions require corporate bank statements for their credit assessments, thus our advice is to set up a business banking account, and credit all future business proceeds to the newly set-up corporate account, and apply for a business loan in 6 months time (most PFIs require 6 months' bank statements for submission except for DBS which require only 3 months' bank statement for credit analysis).
Credit Call is part of the Participating Financial Institution's due diligence to make sure applicants are running a proper and legitimate business. Credit call is required when PFIs use solely bank statement analysis for their credit assessments (like UOB and CIMB).
Usually, the credit call to the Keyman of the business will comprise of the following questions:
1. Nature of Business
2. Financing Purpose
3. How does Covid-19 affect the business
4. Proposed Loan Amount
5. Is the company profit-making?
6. What is the existing company loan commitment?
7. Annual Sales Turnover
Applications may possibly be rejected due to the following reasons:
The guarantor of the application has poor credit bureau standing
Negative net-worth company
Poor repayment conduct of existing personal or business loan facility with the applicant lender
Poor mid/end month balance sighted
Yes, of course. Besides applying by yourself, you can engage us to act as a middleman between you and potential lenders. We understand the daunting task of going through the whole rigorous process of documents submission and numerous Q&As for a company to take up a business term loan.
Our job is to work on your behalf and with several PFIs to find the best business term loan lenders who best fit your needs with the lowest rates. We have a well-developed stable of lenders we work with, making your life easier.
We are like your company loan concierge; we do all the legwork for you, negotiate terms, and make the approval magic happen. All for a nominal fee, of course.
All business term loans will require the company’s director and shareholder to be the personal guarantor.
As per MAS notice 645 TDSR (Total Debt Servicing Ratio) guidelines, 20% of the monthly repayment instalment for any relevant credit facility which the borrower is a guarantor of will be factored into the TDSR calculation.
About Unsecured Business Loan
- Jul 03, 2023
- Business Loan
- May 19, 2023
- Business Financing
- May 11, 2023
- Business Loan
Subscribe to our newsletter