Guide To Best Business Loan And SME Loan In Singapore

Having a business loan serves as the lifeblood of a business, providing the necessary funds to start, operate, expand, and innovate. It helps small businesses navigate challenges, seize opportunities, and achieve long-term sustainability and success.

However, some SMEs might find it difficult to secure business loans from traditional banks due to the lack of credit information, as well as the companies’ perceived riskiness. Additionally, it might get confusing to some business owners when it comes to comparing certain terms on the loan agreement. Here, we have a comparison guide to all the best business loans available in Singapore to ease your troubles.

SMEs in Singapore lack capital and funding. Why do SMEs find obtaining business loan and small business loans tough?

Traditional Bank Business Loan

Traditional banks tend to put their applicants through a much more meticulous and longer assessment process to see if they are suitable to receive a business loan. Consequently, for those who don’t have a long-standing and good relationship with a traditional bank, obtaining any small business loans becomes challenging. Here are a few banks to consider:

1. DBS SME Banking

Business Loan from $20,000 to S$500,000
DBS Quick Finance up to S$300,000
Interest rate up to 11%
Flexible repayment period of 1 to 5 years
Require 2 years financial statements

2. UOB Business Banking

UOB Business Loan (BizMoney) up to S$350,000
Interest rate up to 10.88%
Registered and operating for more than 1 year
Up to 5 years repayment period

3. OCBC Business Banking

Business Term Loan up to S$700,000
Interest rate up to 8.75%
Repayment period of 2 to 5 years

Startup Loan up to $100,000
Interest rate up to 9.75%
Repayment period of 1 to 4 years

Digital Wholesale Bank Business Loan

Digital banks in Singapore refer to banks that primarily operate online and offer their services through digital platforms, mobile apps, and internet banking. These banks often do not have physical branches, allowing them to offer more streamlined and cost-effective services.

1. ANEXT

ANEXT Business Loan up to S$300,000
No documents required for business loans S$30,000 and below
Up to 6 months repayment period
Interest rates from 6.8%

2. Green Link Digital Bank

GLDB Term Loan from S$300,000
Micro Term Loans from S$10,000 to S$300,000
Repayment period up to 2 years
Interest rates from 5.00%

Multiple ways for these small businesses to obtain business loan from Poss Capital

Government-Backed Loans

The government offers a range of business grants and financing options under the Enterprise Financing Scheme (EFS) from Enterprise Singapore. At any growth stage, businesses can take up these SME loans to develop new products, expand their operations, and build on their capabilities.

One such financing option is the SME Working Capital Loan. Moreover, the government incurs a co-risk share of the borrowing amount. This makes lending less risky, and increases the chances of approval. Overall, these business grants support the growth and success of small businesses in Singapore.

Maximum Loan Quantum of S$300,000 per borrower
From 1 October 2022 to 31 March 2024: S$500,000 per borrower
Maximum Repayment Period of 5 years
30% local equity held
Group annual sales turnover not exceeding S$100 million or maximum of 200 employees

Private Lenders

Private lenders such as Poss Capital provide loans for various reasons as they see fit for their investment. This is because they profit off the interest rates of the money they lend you – that is their business model. At Poss Capital, we understand that small and medium-sized enterprises (SMEs) face major challenges due to limited access to finance across different stages of a business cycle. Poss wants to bridge this financing gap for businesses that lack sufficient funding by providing them with an alternative source of capital.

Up to S$100,000
Up to 12 months Repayment Period
Interest from 1.2% per month
Monthly Repayment

Getting a much-needed loan from a private lender can be much more flexible than getting it from a traditional bank. Lending from private lenders can provide you or your business with a much smoother path. Contact us today, and let’s help you get there faster. At Poss, we are here to provide you access to funds when you need them the most.