Unsecured Business Term Loan in Singapore
UPDATED AS OF 28 Jan 2022
UPDATED AS OF 28 Jan 2022
UPDATED AS OF 28 Jan 2022
Click above for historical trend
| SIBOR | SOR | SORA | |
|---|---|---|---|
| 1-month | 0.265 | 0.19985 | 0.1486 |
| 3-month | 0.43607 | 0.24071 | 0.1695 |
| 6-month | 0.59193 | 0.27153 | 0.1835 |
| 12-month | NA | NA | NA |
What is the maximum amount that SMEs can loan from Participating Financial Institutions under the Temporary Bridging Loan Programme?
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$3 million (S$5 million currently). This is to calibrate the support for businesses as the economy gradually recovers.
Can a business apply for Temporary Bridging Loan from different Financial Institutions?
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$3,000,000.
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
Innoven Capital
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.
What is the difference between the Temporary Bridging Loan and the Enhanced Enterprise Financing Scheme - SME Working Capital Loan?
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$3 million, with an interest rate capped at 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$1 million.
Can a business apply for the Temporary Bridging Loan if directors' have a bad credit bureau score?
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.
My business has been rejected by one of the Participating Financial Institute (PFI), Can I still approach other PFI for the Temporary Bridging Loan Programme?
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 enquiry@enterprisesg.gov.sg for assistance.
Why is there a Site Visit inspection by some participating Financial Institutions for the Temporary Bridging Loan application?
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.
Since Enterprise Singapore provides a 70% risk share on the loan, is the business responsible for only 30% of the remaining percentage of the loan?
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.
I run an e-commerce business and all business proceeds are credited into my personal account, can I apply for the Temporary Bridging Loan scheme with my personal bank statements?
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).
Why is there a Credit Call by some participating Financial Institutions for the Temporary Bridging Loan application?
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
What Are The Likely Reasons For My Business Loan Application To Get Rejected?
Applications may possibly be rejected due to the following reasons:
The guarantor of the application has poor credit bureau standing
Loss-making company
Negative net-worth company
Poor repayment conduct of existing personal or business loan facility with the applicant lender
Poor mid/end month balance sighted
Can Smart Towkay Help With My Business Loan Application?
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.
Will Taking Up A Temporary Bridging Loan Affect My Personal Residential Purchase In The Future?
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.
Even in tough times,
we’re here for you.
we’re here for you.
Did you know?
0%
SME face cashflow problem
There are various government assisted SME Loan Financing Scheme in Singapore offered by more than 30+ banks & financial institutions?
With the rise of alternative lenders, SMEs currently have more options in their working capital requirement.
Businesses Seeking For SME Loan
Are Not Aware
01
Credit Criteria
Different Lenders have different credit criteria, rejection in one does not means rejection in others
02
Interest Rate
Depending on the borrower nancial standing, processing fees and interest rates might differ
03
Personal Guarantor
Although most business loan are market as unsecured, there's still a need for personal guarantee by the directors/shareholders
So where can you go?
Smart Towkay helps SMEs in Singapore in their SME Business Loans and Cashflow solution by Comparing & Maximize their Approval Chances
by recommending lenders which company might be eligible for
Step 1
Apply in just 1 Min by Click here for Our Business Eligibility Calculator
Step 2
Take 1 minute to provide key company information & our system will generate indicative suitable lenders
Step 3
See all best SME loan options available for your company via email
|
TYPE OF SME LOAN
Best SME Loans Package In Singapore
|
|||
| TYPE | TYPE INTEREST RATE | AMOUNT UP TO | TENURE |
| SME WORKING CAPITAL LOAN (Government Financing Scheme) | From 6-12% E.I.R | S$1,000,000 | 5 years |
| TEMPORARY BRIDGING LOAN(Government Financing Scheme) | Capped at 5% E.I.R | S$5,000,000 | 5 years |
| BANK LOANS | From 6-12% E.I.R | S$500,000 | 5 years |
| PEER TO PEER LENDERS | From 1-3% simple interest per month | S$500,000 | 12 months |
| BUSINESS TO BUSINESS LENDERS | From 3-6% simple interest per month | S$500,000 | 12 months |
Need some help?
No worries, we've got you covered!
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$3 million (S$5 million currently). 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$3,000,000.
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
Innoven Capital
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$3 million, with an interest rate capped at 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$1 million.
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 enquiry@enterprisesg.gov.sg 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
Loss-making company
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.
Disclaimer: Interest rates above are Financial Institution public broadcast rates, depending on Borrowers' Financial Standing, rates may varies according to banks' credit and risk assessment.
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