Reliable Access to Business Term Loans in Singapore Since 2018

At least one Singaporean or PR guarantor is required, and they must earn an annual income of at least S$24,000. To qualify, the individual must also have a clean financial history with no outstanding bankruptcy or default records.

Most banks charge an early-repayment penalty of about 2-5%. Some non-bank lenders allow for an early repayment without fee, and some have a minimum loan period of 6 months and are without fee after.

Non-bank lenders can process loans in as little as 1-2 days, but a loan application typically takes at least 1-2 weeks. For banks, this can take up to 1 month because the assessment process is longer.

You will need to provide the company’s bank statements from the past six months and financial statements covering the last two years. For at least one guarantor, you must submit a Credit Bureau Singapore (CBS) report and the two latest years of their Personal Notice of Assessment.

An unsecured business term loan in Singapore is a loan that does not require you to pledge any physical assets as collateral. Approval is primarily based on the creditworthiness of your business and its directors.

The maximum loan amount depends on whether you are applying through a government-backed scheme, a traditional bank, or a private lender. Under Enterprise Singapore (ESG) initiatives, the Temporary Bridging Loan offers up to S$1 million, while the SME Working Capital Loan provides up to S$300,000.

Most traditional banks offer an unsecured business term loan up to S$350,000. For non-bank lenders, the cap is typically S$200,000, though some lenders offer up to S$1 million. Regardless of the government risk-share percentage, borrowers are always responsible for repaying 100% of the total loan amount.

Yes, if you have available collateral, you can consider taking a secured loan using publicly traded shares. You can also cash out your property with a property-backed loan, which commands interest of less than 3% p.a. Alternatively, you can also sell your invoices through invoice financing, whose interest is also lower at 3-4%.