SME Loan Singapore- Working Capital Loan

I want to borrow
Over
Years
Eligibility - Sales Turnover
Eligibility - Years of Incorporation
Years
UPDATED AS OF 11 Apr 2021
UPDATED AS OF 11 Apr 2021
Lowest Business Banking Facilities
SMART-TOWKAY.COM
Lowest Temporary Bridging Loan Rate
2.5%
Per year
Lowest Business Term Loan Rate
6%
Per year
Lowest Home Loan Rate
1.08%
Per year
Lowest P2P Biz Loan Rate
1%
Per month
Lowest Commercial Property Rate
1.21%
Per year
Latest SIBOR, SOR And SORA Rates
UPDATED AS OF 11 Apr 2021
Click above for historical trend
SIBOR SOR SORA
1-month 0.28126 0.27989 0.2203
3-month 0.4375 0.35054 0.1902
6-month 0.59321 0.32888 0.1784
12-month NA NA NA

Who can apply for a business term loan?

Any locally incorporated company with at least 30% local shareholding can apply for a business term loan, no matter how big or how small, although some lenders will only lend to private limited companies, so you need to check this.


Different lenders have their respective industry exclusion list which includes but are not limited to:



  1. Casinos, gambling &/or gambling equipment

  2. Lethal military weapons & equipment

  3. Traders in precious metals (retail sales of jewelry is acceptable)

  4. Antique dealers

  5. Brothels

  6. Night Clubs/ Bars

  7. Money Lenders/ Pawn shops

  8. Money Changers/ Exchange/ Remittance

  9. Any other businesses which are involved in illegal activities or which could adversely affect the Bank’s reputation


*above stated as a general guideline as, unlike personal loan, business loan credit assessments are more comprehensive and detailed.

How much can I borrow for a business loan?

Most lenders have a maximum quantum that each company can take up. The amount usually ranges from $300,000 to $500,000 but certain lenders have a higher approval quantum of up to $1,000,000/- or more.

What are the maximum tenures for a business term loan?

The tenures for business term loans can range from 1 to 5 years. The longer your tenure is, the lower your monthly instalments will be and the more interest you will incur.

Are there any additional fees I need to be aware of?

All lenders charge a fixed processing fee of 1-2% and some lenders charge an annual fee. Thus, do scrutinise your offer letter closely before signing. Late fees and charges are applicable among all lenders.

What are the required documents for submission?

Most lenders will require the standard documents listed below for processing:



  • Latest 6 months company’s operating account

  • Latest 2 years company audited/ management report

  • Latest 2 years notice of assessment of directors/shareholders

  • Photocopy of directors/shareholders NRIC (front and back)


Some may ask for additional documents such as company’s debtor aging list, corporate Notice Of Assessment, GST tax filing, etc.

What if I have an unsuccessful application in the past? Can I apply again?

Different lenders have different credit criteria; an unsuccessful application in one lender does not mean straight rejection from other lenders. But the rule of thumb is that one can apply for a loan again, from the same lender who rejected their initial application, in another 6 months’ time.

Will taking up a business term loan affect my personal residential purchase in the future?

All business term loans will require the company’s directors & shareholders to be the personal guarantors. As per MAS notice 645 TDSR (Total Debt Servicing Ratio) guidelines, 20% of the monthly repayment instalment of any relevant credit facility in respect of which the borrower is a guarantor will be factored into the TDSR calculation.

How long is the whole application process?

Depending on the lender, it can take as fast as a week approval to as slow as a month approval. Note after approval and signing of the offer letter, it will usually take 3-5 working days for the funds to be disbursed.

Can smart-towkay.com Help With My 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 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.

Even in tough times,
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.

Talk To Us
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
Business Loan

Step 1

Apply in just 1 Min by Click here for Our Business Eligibility Calculator

Business Loan

Step 2

Take 1 minute to provide key company information & our system will generate indicative suitable lenders

Business Loan

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
Business Loan
Need some help?

No worries, we've got you covered!

SME ML



  • Max Loan Quantum: S$100,000

  • Repayment up to 4 years

  • SME Eligibility Criteria


          1. Registered and operating in Singapore


          2. At least 30% local shareholding


          3. Group annual sales of ≤ S$100M or group employment size of ≤ 200


 


SME WCL



  • Max Loan Quantum: S$300,000

  • Repayment up to 5 years

  • SME Eligibility Criteria


          1. Registered and operating in Singapore


          2. At least 30% local shareholding


          3. Group annual sales of ≤ S$100M or group employment size of ≤ 200



  •  Spring Singapore will co-share 50% of loan default risks with PFIs and SMEs.

Yes, you can. Potentially SMEs can apply for both schemes and get a maximum approval quantum limit of S$400,000 subject to bank assessment of your company financial standing.

The interest rate is at 6.75% effective but do note that interest rates are subject to PFIs' discretion as they will do their own risk assessment and determine the final interest rates chargeable to the borrower.


One of the key features of the above scheme is there is no repayment penalty for partial or full redemption of the loan within the approved tenor. The borrower will only need to serve a one month notice period for partial or full redemption to PFIs.


PFIs will charge a 1-2% processing fee and some might charge an annual fee, thus do check with the PFIs before applying for the scheme.

Typically, PFIs business term loan have higher interest rates and carry a lock in period i.e. any partial or full redemption of the loan within the loan tenor will incur a repayment penalty while SME ML & WCL does not have any repayment penalty.


Most PFIs business term loans will require ≥ 2- 3 years old incorporated company to be eligible for their loan while for SME ML & WCL, some PFIs will even accept ≤ 1-year company for the application.

No. With the Co-Risk sharing scheme PFIs will be more inclined to take in more loan exposure to a certain extent, but that does not necessarily mean a lenient risk assessment.  PFIs will still approve applicants within their own credit parameters and comfort levels; although credit parameters can differ among PFIs, their main assessments are still based on company Financial Reports, Bank Statements and Individual Directors’ declared income assessments.

Most PFIs will require the standard documents listed below for processing:



  • Latest 6 months company’s operating account

  • Latest 2 years company audited/ management report

  • Latest 2 years notice of assessment of directors/shareholders

  • Photocopy of directors/shareholders NRIC (front and back)


Some may ask for additional documents such as the company’s debtor aging list, corporate Notice Of Assessment, GST tax filing, etc.

Under these schemes, SMEs can borrow up to S$100,000 (SME ML) and S$300,000 (SME WCL).


Every PFI have their own credit exposure considerations and have an internal maximum loan guideline. As such, they might not approve loaning the full amount under these schemes. In the event that an SME needs more than the approved amount for their working capital needs, it can apply to other PFIs for the remaining ‘balance’ of the loan limit.


Do note that at the point of application with another PFI, the borrower will have to declare their SME Spring Loan exposure so that there will not be a double booking of limit with Spring Singapore. For instance, if an SME took up a S$100,000 SME ML and also qualify for SME WCL, the secondary PFI must then apply under SME WCL for the PFIs.


SMEs can also do a ‘top-up’ of existing SME ML/WCL with PFIs after 6 months to a 1-year servicing of the loan.

Different PFIs have different credit criteria; an unsuccessful application from one PFI does not mean straight rejection by other PFIs. But the rule of thumb is SMEs can apply from the same PFIs who rejected their initial application after 6 months.

Applications may possibly be rejected due to the following reasons:



  1. Poor credit bureau standing of the guarantor of the application

  2. Loss making company

  3. Negative net-worth company

  4. Poor repayment conduct of existing personal or business loan facility with the applicant lender

  5. Poor mid/end month balance sighted

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) guideline, 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.

Depending on the PFIs, approval can take as fast as a week or as slow as a month.


After the PFI’s own credit approval, they will check with Spring Singapore again for the latter’s approval and it will typically take 3-5 working days for Spring Singapore to respond.


Once the green light is given by Spring Singapore, the borrower can then sign the offer letter and thereafter it will usually take 3-5 working days for the funds to be disbursed.

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.

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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