Singapore Business Loans: SME Micro Loan and SME Working Capital Loan

Singapore Business Loans: SME Micro Loan and SME Working Capital Loan

Is your company a new one? Or have you been in the industry for some years? It doesn’t matter how long you have been in the industry; chances are you will need to acquire financial assistance to grow your business. Business loans in Singapore can be from a private lending company or from the government. Enterprise Singapore is in charge of handling all business loans in Singapore. And there are numerous business loans in Singapore to choose from depending on the purpose of the loan and the structure of the company asking for it. But, for this article, we will be focusing on the two.

So, before you decide which of the two loans to take, make sure you will check if you qualify for the said loans.

SME Micro Loan

If you are still on the startup stage in your business, you can avail the SME Micro Loan from Singapore. This loan aims to assist those who are new to the business and offers up to $100 000 in funding. So, if your business has 10 employees at most, you are qualified to avail the SME Micro Loan.

Requirements:

  • Registered in Singapore
  • Operating in Singapore
  • 10 Employees at Most
  • Up to $1 Million Annual Sales
  • Has 30% Local Shareholding at Least

Pre-Application

  1. Make sure your business is qualified
  2. Ask Participating Financial Institutions consultation, advice, and assistance
  3. Bring the following supporting documents to the Financial Institution:
  • ACRA Business Profile
  • Bank Statements
  • Certified Financial Statements or Audited Accounts
  • The Directors’ and Owners’ Personal Income Tax Assessment
  • Other documents that are required by your Financial Institution

Here’s a list of the Financial Institutions you can approach if you want to apply for the SME Micro Loan:

  • DBS Bank Ltd
  • Ethoz Capital Ltd
  • IFS Capital Ltd
  • Hong Leong Finance Ltd
  • Malayan Banking Berhad
  • Oversea-Chinese Banking Corporation Ltd
  • ORIX Leasing Singapore Ltd
  • Sing Investments & Finance Ltd
  • United Overseas Bank Ltd
  • RHB Bank Berhad

Application

You can download the Application Form Guide in compiling all the supporting documents, and the Local Enterprise Finance Scheme Application Form here. The Processing the Application may run from three weeks or more, depending on how big your loans are.

Post Application

You will receive the funds from your Financial Institution if you are successful in your application. The repayment for the loan usually starts one month after your loan is released.

SME Working Capital Loan

If you require a bigger business loan in Singapore, then you can opt to access the SME Working Capital Loan. Through this business loan in Singapore, companies like yours can get working capital loans of up to $300,000. This loan, launched in the year 2016, June, this loan functions as an additional financing option for businesses based in Singapore.

Another good thing about this is that Enterprise Singapore partners with participating business and financial institutions and co-shares or funds 50% of the loan risks. And the loan is payable within 5 years. Take a look below at the requirements and the application process if an SME Working Capital Loan is what you are searching for.

Requirements:

  • Your business must be a registered and operating business here in the country.
  • The business must have a local shareholding of at least 30%
  • You have a yearly or annual sales reaching up to $100 million, or your company/business have an employee count of not more than 200 workers.

Pre-Application

    1. First Ensure that your business qualifies for the Working Capital Loan
    1. Consult any financial institutions participating in the loan program for advice concerning the loan.

Go and meet with your chosen financial institution with the following documents:

  • Your business profile
  • Certified financial statements or your audited accounts
  • your bank statements
  • your personal income tax assessment as well as those of your directors
  • Any other documents required by your chosen financial institution

Here is the list of financial institutions you can connect with if you are interested in the business loan:

  • DBS Bank Ltd
  • Ethoz Capital Ltd
  • Hong Leong Finance Ltd
  • IFS Capital Ltd
  • Malayan Banking Berhad
  • ORIX Leasing Singapore Ltd
  • Oversea-Chinese Banking Corporation Ltd
  • RHB Bank Berhad
  • Sing Investments & Finance Ltd
  • Standard Chartered Bank
  • The Bank of East Asia Ltd
  • The Hongkong and Shanghai Banking Corporation Ltd
  • United Overseas Bank Ltd

Application

For the application you can head over to Enterprise Singapore’s page:

https://spring.enterprisesg.gov.sg/Growing-Business/Loan/Pages/SME-Working-Capital-Loan.aspx

  • Download the forms Local Enterprise Finance Scheme and the application guide.
  • Your application takes three weeks or more to be processed depending on the amount of money you are borrowing and other factors.
  • Compile all the documents that you need to submit and file them.

 

Post- Application

You will receive the funds from your Financial Institution if you are successful in your application. The repayment for the loan usually starts one month after your loan is released.

Conclusion:

Whether you are a seasoned businessman or a start-up entrepreneur you can be sure to get financial aid from the business loans in Singapore offered by the government. Just follow out easy steps in applying for either an SME Micro Loan or an SME Working Capital Loan.

For more business loan options in Singapore, visit Enterprise Singapore’s loan page

https://www.enterprisesg.gov.sg/financial-assistance/loans-and-insurance