BUSINESS CARDS

The only interest free credit option

Business cards are an excellent way to build what many may call as a permanent working capital at an interest free rate.

Pre-approved amount up
to 3x monthly cashflow
Max credit limit up to $500k
Pay non-card expenses
As low as 1.3% processing fee
per transaction
Get interest free credit for
20-55 days
Depending on your statement date
and spend date, you only

Explore card options from
our leading lenders

Here’s how it works

If you are a user of a personal credit card, you will find the concepts of a business card relatively easy as its functionalities are the same. Here’s a quick breakdown on how you can use a business credit card to get interest free working capital.

Credit Limit Determination

The first step to your business card is credit limit determination. This works the same as your personal credit assessment only that it has a little more business data. A typical assessment will require your financial statements, bank statements, credit bureau report of your directors and shareholders and their notice of assessments. Credit limits are typically 3x of your monthly cashflow and can go up to S$500,000

Focus on “Card-able” spends

Once you got your credit limit determined, you are now able spend off the credit of the card issuer. However, it is to note that this only applies to “cardable” expenses. These are usually for online spends such as digital marketing, travel bookings, transportation and even some phone and utility payments. Monthly expenses as such can sometimes reach up to $100,000 for some businesses.

Credit Limit Determination

The first step to your business card is credit limit determination. This works the same as your personal credit assessment only that it has a little more business data. A typical assessment will require your financial statements, bank statements, credit bureau report of your directors and shareholders and their notice of assessments. Credit limits are typically 3x of your monthly cashflow and can go up to S$500,000

Focus on “Card-able” spends

Once you got your credit limit determined, you are now able spend off the credit of the card issuer. However, it is to note that this only applies to “cardable” expenses. These are usually for online spends such as digital marketing, travel bookings, transportation and even some phone and utility payments. Monthly expenses as such can sometimes reach up to $100,000 for some businesses.

Leverage on interest-free working capital

Here’s the most important part. Understanding your statement and due dates are key to helping you time your expenses and leverage on interest-free working capital for your businesses. See below diagram for better illustration.

Leverage on interest-free working capital

Here’s the most important part. Understanding your statement and due dates is key to help you time your expenses and leverage on interest-free working capital for your businesses. See below diagram for better illustration.
1

With a $100,000 credit limit, an SME spends $45,000 on the 14 Mar 22, which is one day after the statement date. This is the best scenario where it is the furthest from the statement date. Therefore, it is most optimal for businesses to spend as earlier on as possible to leverage on a longer interest-free credit period  (up to 30 days)

2

On the 13 Apr 22, the statement will be billed for transactions made from 14 Mar 22 to 13 Apr 22. Any transaction made after the statement date will be billed only in the next statement 13 May 22. Thus, the SME can still make another $45,000 transaction on the 14 Apr 22 with the raining credit limit.

3

With the due date on the 7 Apr 22, it gives the SME an additional 24-25 days of interest-free credit from the statement date.

4

Based on the above, this means that not only will the SME get a total of 54 days of interest-free credit, but if he only uses half of his credit limit each time, he is able to achieve what many call permanent working capital (in this case S$45,000). See table below.

Date
Action
Outstanding Interest Free balance
Remaining Credit Limit
14 Mar 22
Spend (S$45,000)
S$45,000
S$55,000
14 Apr 22
Spend (S$45,000)
S$90,000
S$10,000
7 May 22
Pay Due (S$45,000)
S$45,000
S$55,000
14 May 22
Spend (S$45,000)
S$90,000
S$10,000

What about non-cardable expenses?

One way to manage non-cardable expenses is to look at service providers that can help convert a card spend to a non-card one (i.e. a wire transfer). This typically comes with a processing fee of as low as 1.3%. This means that you can use your credit limit obtained from your card for anything (even when they are not cardable). This includes paying for your supplies which you originally pay via wire transfer. The processing fee that you pay is therefore interest cost for a 55 days credit. This average to about 8.6% p.a

The two biggest players in this space are Cardup and iPayMy. Below are the pricing:
Transaction fees (in S’pore)
Transaction fees (Overseas)
Payment scheduling
Accepted Cards
As low as 1.3%
3.3%
Yes
All Visa, AMEX and Mastercard.
As low as 1.7%
3.3%
Yes
All Visa, AMEX and Mastercard.

Eligibility

Eligibility

Business registration
Incorporated in Singapore (including LLP, Sole proprietorship)
Business ownership
At least 30% of the company owned by Singaporeans / PR
Credit of shareholders
No existing default records
Time in operations
At least 3 months of operating revenue

Lendingpot Exclusive:
Enjoy 2% cashback on local spends if you apply a card through Aspire

Lendingpot Exclusive:
Get $50 card credit if you apply for a card through Volopay

How to apply

Apply for your loan through Lendingpot to be directly connected to 45 different possible lenders.
Apply on our website
Complete Verification with Loan Specialist
Case gets listed on marketplace
Lenders reach out on offers
Get funding

Why get your property loan through Lendingpot?

Why get your your Card through Lendingpot?

A team that will support you

We have a dedicated team that will walk you through your entire loan process and help you do the market research you need.

We let lenders compete for your loan

Be ready to be spoilt for choice when we help you compare the best deals across all banks and non-banks so you only get the lowest interest rate and the highest cash out amount. Our rates are same as what the banks can offer or even better.

It’s Free! Plus get Rewards!

We do this entirely without cost to you. However our lenders pay us a referral fee to let them compete and win your business. Hence, you can be assured that our advice is unbiased and true to you.  Additionally, we give rewards to our members when they get a loan as a way to share our joy.

Why get your your Card through Lendingpot?

A team that will support you
We have a dedicated team that will walk you through your entire loan process and help you do the market research you need.
We let lenders compete for your loan
Be ready to be spoilt for choice when we help you compare the best deals across all banks and non-banks so you only get the lowest interest rate and the highest cash out amount. Our rates are same as what the banks can offer or even better.
It’s Free! Plus get Rewards!
We do this entirely without cost to you. However our lenders pay us a referral fee to let them compete and win your business. Hence, you can be assured that our advice is unbiased and true to you.  Additionally, we give rewards to our members when they get a loan as a way to share our joy.

Featured

FAQS

How long does a credit application takes?
What are the documents that are required for a business card?
Do I need to provide guarantors for a business card?
How much credit am I able to obtain for a business card?

Still have doubts?
Let us help!

We’re happy to address any doubts you may still have. Let us know in the message box or simply book an appointment with us below.

If you would to be kept updated on the most recent developments in the SME loan market, join us in our mailing list.

We're featured on:
Your Name
Your Phone Number
Your Email Address
Your Message
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Please refresh and try again.