A Beginner's Guide to Startup Business Loans in Singapore

Starting a business is exciting—but let’s face it, funding your startup can be tough, especially when you’re just getting off the ground.

Banks typically prefer businesses with at least 1–2 years of operating history. But what if you don’t have that yet?

In this guide, we’ll walk you through practical startup loan options in Singapore, how you can use tools like credit cards for cashflow, and how platforms like Lendingpot can help you compare and apply for the right funding—all in one place.

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What Are Startup Business Loans?

A startup business loan is a financing solution tailored for new businesses that may not yet qualify for traditional SME loans. These options are useful for:

• Buying inventory or equipment
• Paying suppliers or staff
• Funding your first few months of operations
• Managing daily cashflow

If you’ve been running your business for under 2 years or haven’t hit $500K in annual revenue yet, you might not meet the criteria for a traditional business loan—but there are still plenty of financing solutions to consider.

StartupFinancing Options in Singapore

At Lendingpot, we’ve worked with thousands of small businesses and startups. Here are some popular funding options that can work for newer businesses:

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1. Personal Loans (Used for Business)

If your business is still young, banks will assess your personal income and credit score instead of your business revenue.

Why it works:

• You can borrow up to 8x your monthly income
• Tenures up to 5 years
• Use it for your business—even if the loan is under your name

Apply for a Personal Loan through Lendingpot

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2. Credit Cards for Business Cashflow

Don’t underestimate this: credit cards can help bridge short-term expenses, especially in the early stages.

Why use a credit card?

• Up to 55 days interest-free
• Easy to track spending
• Ideal for marketing, subscriptions, and ad hoc costs

‍Just remember to pay your balance promptly—credit cards typically have interest rates of ~25% p.a.

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3. Share - or Insurance-Backed Loans

If you own publicly traded shares or insurance policies with surrender value, you can borrow against them.

• Share-backed loans: Borrow up to 70% of share value
• Insurance-backed loans: Tap into policy value without terminating it

‍Great if you have personal assets but don’t want to dip into your savings.

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4. Invoice Financing

If your clients pay you on 30, 60, or 90-day terms, invoice financing lets you unlock those funds earlier.

How it works:

• Upload an invoice
• Get up to 90% of the invoice value upfront
• Use the funds for immediate working capital

‍Learn more about Invoice Financing

5. Revenue-Based Financing

No fixed repayment schedule—just repay as a % of your monthly revenue.

‍Best for

• Startups with seasonal or inconsistent income
• E-commerce businesses
• Subscription-based models

‍Flexible and founder-friendly.

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Documents You’ll Need

Whether you apply for a startup loan, invoice financing, or personal loan, it’s good to prep your documents in advance.

Here’s what most lenders will ask for:

• ACRA business profile
• 6 months of business bank statements
• Profit & loss (if available)
• NOA for all directors (if applying via personal income)
• Credit Bureau report

‍Some lenders may ask for supplier invoices or customer contracts to support your loan request.

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Why Use Lendingpot?

At Lendingpot, we help you access multiple lenders through one application. No more repeating your story over and over again.

‍Benefits:

• One application = offers from 45+ lenders
• Get matched with suitable financing options
• We don’t charge you any fees
• Our loan specialists guide you throughout

Whether you’re looking for a personal loan, invoice financing, or startup funding, we’ll help you find the best deal.

Submit Your Application Now – it’s fast, free, and doesn’t affect your credit score.

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TL;DR: Your Startup Loan Game Plan

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