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SME Working Capital Loan

SMEs in Singapore can tap into the SME Working Capital Loan under Enterprise Singapore's Enterprise Financing Scheme (EFS-WCL).

The SME Working Capital Loan (WCL) is a government financing scheme for SMEs to access working capital for cash flow and expansion needs. Here are the loan details:

•  Maximum loan quantum: Up to S$500,000 (across multiple banks)
•  Repayment period: 5 years
•  Interest rate: Subject to participating financial institutions' risk assessment
•  Government risk sharing: From 50% risk share

The WCL financing scheme is offered by over 16 different banks & financial institutions. There are also other government financing schemes and loan products for SMEs.

Credit criteria and interest rate varies across all banks. Compare across all banks for more options & maximize approval chances.

Now, you can compare all SME loans easily in just 1 minute! Use our free online loan assessment tool to compare all SME financing facilities.

 

Try out our free loan assessment tool and see all
your best SME loan options instantly!

What are SME Loans?

SME loans are business financing solutions tailored for small and medium-sized enterprises (SMEs) in Singapore. These loans help SMEs manage cash flow, support day-to-day operations, expansion, or invest in assets and inventory. Common SME loan types include working capital loans, invoice financing, fixed asset loans and trade financing.

 

Types of SME Loans

SME Working
Capital Loan

Government financing scheme with up to maximum loan amount of $500K for working capital. Maximum repayment period up to 5 years. From 50% government risk sharing.

Enterprise Financing Scheme (EFS)

Various government financing schemes streamlined under one umbrella to support various stages of your business growth. Government risk sharing with participating finance institutions.

SME Fixed Assets Loan

Finance SMEs' investments of fixed assets such as equipment and machinery for automation and productivity upgrading. Up to 50% risk sharing from Enterprise Singapore.

Trade Loan -
EFS TL

To support trade financing needs such as inventory and invoice financing. Usually structured as a revolving credit line for both domestic and overseas transactions.

SME Loan Interest Rate

Every bank's unsecured SME loan interest rate is different and typically ranges between 7.5% to 9% p.a. effective rate.

Factors affecting interest rate include business's credit risk profile and age. Businesses with better credit scoring and higher age (above 5 years) will obtain lower interest rates.

Different banks' financing products bear different rates. To apply for the lowest business loan rate your business is eligible for, try out our loan comparison tool.

Loan Calculator

Loan amount
$50,000 $500,000
Repayment period
1 years5 years
Interest rate
7%11%
Estimated monthly installment:
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SME loan requirements and criteria

Group annual sales not more than $100M OR group employment size not more than 200.

Singapore registered and operational business incorporated for at least 6 months (preferably 1 year)

Minumum 30% shareholdings owned by Singaporeans or PR

SME Financing Institutions

  • DBS SME loan
  • standard chartered sme loan
  • Maybank SME loan
  • RHB SME loan
  • OCBC SME loan
  • UOB SME loan
  • CIMB SME loan

Best SME loan in Singapore

Which is the best bank to apply for financing? Here are some popular banks' loan products:
Interest Rate From 7.75% p.a. 7.75% p.a. (indicative) From 7.5% p.a. From 7.59% p.a.
Loan quantum Up to S$500,000 Up to S$500,000 Up to S$500,000 Up to S$500,000
Repayment period Up to 5 years Up to 5 years Up to 5 years Up to 5 years
Facility fee From 0.75% of loan amount 1.5% of loan amount 2% of loan amount 2% of loan amount

Last updated: April 2025

Aside from these banks, there are over 40+ financial institutions in Singapore that you can apply SME loans with.

Try out our free online loan assessment tool to see your best financing options instantly.

What You Get

  • Lower Interest Costs

    We will help you compare and secure current lowest interest rates via our wide network of banks and financial institutions. Don't pay higher interest.

  • Higher Approval Rate

    Improve your approval chances. We are familiar with the credit criteria of most banks, with solid track record of >80% approval rate for SME loan applications.

  • Secure Funding Faster

    We help your company secure financing fast! Reduce SME loan application processing time by 3-5 working days.

  • Hassle Free Approach

    Leave the tedious SME loan application process to our specialists while you focus resources on your core business.

  • Higher Finance Amount

    Secure larger financing & higher loan amount. Procure up to $1M or more unsecured business loan in Singapore across multiple banks.

  • Risk Free Process

    No upfront fees, no fees applicable if we’re not able to secure financing for your company. Performance guarantee, pay only for results!

Join hundreds of SMEs just like yours who entrusted us to help grow their business

"

Fast efficient response

"We are very satisfied with the service and capability of Linkflow Capital in assisting with our company’s expansion. They have provided us clear financing solutions with fast response and turnaround time.”

Mr Frankie Gwee
Tuan Yuan Pork Ribs Soup
(F&B restaurant)

"

Trusted advisor

"Linkflow Capital has assisted our company with trade financing, enabling a 300% revenue growth in 2 years. They are our trusted advisor and served us with efficiency and honesty over the years.”

Mr S.S. Lee
Powerzone Technologies
(Engineering and trading firm)

"

Sincere customer service

“Linkflow Capital has helped us identify facilities suitable for our company’s growth. The consultant is sincere, efficient and provided prompt follow up service.”



Mr Toh
WaWe Design
(Reno & ID firm)

"

Professional consultant

"The consultant’s service exceeded my expectations. He is professional and provided me with useful insights. I would gladly recommend Linkflow to anyone looking for a professional who knows their stuff and can deliver."

Mr Wong
Hola Pte Ltd
(Retail and e-commerce)

"

Flexible solutions

"Ben is a professional and exercised flexibility in our engagement. Others have approached us but we choose to stick with the consultant. He delivered beyond expectations and justified our decision."

Mr Phua
Rave International Group
(Events company)

"

Trustworthy and reliable

“Linkflow Capital is our long-term partner, supporting the growth of our company from the start. They are trustworthy, reliable and responsible, key qualities why they are my sole and preferred finance consultant over the years.”

Mr Kamesh
Appali Engineering Pte Ltd
(Construction company)

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What is the SME loan interest rate?

SME loan interest rate ranges anywhere between 7.5% to 9% p.a. Different banks offer different rate and interest rates are subject to respective banks’ credit discretion.

Do I need to engage a SME loan broker?

Engaging a business loan consultant is optional. If you’re not familiar with banks’ credit criteria, a competent broker might help improve approval chances and negotiate better terms.

How to apply for a SME loan?

Businesses can apply SME loans from a myriad of banks, financial institutions or alternative lenders. There are about 40+ SME financiers and many more financing products to choose from.

Is there startup SME loan available for new business and company?

There are very limited financing options for new startups. Most banks prefer financing companies with minimum 1 to 2 years of operational history.

What government assisted financing schemes and loans can SMEs apply for?

SMEs can apply for the Enterprise Financing Scheme or SME Working Capital Loan via the respective participating financial institutions.

What is the SME loan eligibility criteria and requirement to qualify for financing?

Every bank have different credit criteria. Generally, most banks require the borrower to have minimum 30% local shareholdings, at least 1 year old, and revenue of $200K minimally.

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SME Loan Singapore FAQs

The maximum small business loan funding amount differs among various banks and also depends on your company's credit profile (revenue size, industry, cash flow position etc.).

Most banks’ maximum financing amount granted to SMEs range between $300K to $500K. However, it is exceedingly hard to secure the maximum amount unless the company has close to perfect credit profile.

If your main bank is not able to meet your requested financing amount, you can also apply across other banks concurrently to maximize the financing amount you’re targeting.

The typical turnaround time for SME loan applications is 1 to 3 weeks.

For complicated cases or companies with weaker credit profile, loan application time could take up to 3 to 5 weeks. 

If you managed to secure approval after the loan application review, you’ll have to wait for about another 1 week for funds to be disbursed. So from application to receiving funds, expect a turnaround time of between 3 to 5 weeks on average.

For those who can’t afford to wait, there are some non-bank alternative financiers who could process loans within 1 week. However, be prepared to pay for higher interest rate or fees compared to bank options.

Most SME loan applications can be rejected due to multiple reasons, such as

  1. Approaching the wrong banks
  2. Business owner’s personal credit profile
  3. Limits to financing for existing bankers
  4. Weak cash flow

Imagine this scenario: You require funds urgently. Perhaps, to confirm bidding for a tender or seize opportunity for a big project .

Yet, when your SME loan application is declined, you will either have to cancel or postpone this project. Your company’s expansion plan might be stalled due to the missed opportunity.

Moreover, when your application is declined, you might not be able to submit another application to the same bank for the next 6-12 months!

It is critical that you identify the right bank to seek financing with and to be able to address the bank’s credit concerns and queries adequately, to minimize rejections.

There are more than 20+ banks and financial institution providing SME loans. Their interest rate are different and varies according to factors such as credit grading of applicant and the loan quantum.

SME loan interest rate ranges between 4% to 6% simple rate p.a. (EIR about 7%-11%). It is also prudent to compare widely through multiple banks to source for the best financing deal.

Do note that the lowest rates quote that you receive might not necessarily mean it’s the best financing offer. Check with the banks on their processing fees, annual fees if any and any other fee charges that could effectively increase your cost of borrowing.

Alternatively, consider engaging a loan broker to help comb through the various banks business loan products to find the lowest rates for your company.

There are various working capital loan products available to meet the different requirements of SMEs

Common SME loan facilities include:

  • Unsecured business term loans
  • Trade financing (Letter of Credit/Trust Receipt)
  • Factoring
  • Receivables financing
  • Asset financing
  • Project based financing
  • SME Working Capital loan

How do you cut through the complexity and technical jargon to determine the most appropriate working capital loan to utilize?

Through our expertise and experience in securing SME finance, we describe to you the various financing products in basic terms and explain how you can best utilize them for your business.

Business owners can approach any bank that offers SME loan facilities to submit an application.

There are close to 20 banks & financial institutions (FIs) providing small business loan to SMEs.

Different banks have varying credit criteria and risk appetite.

Do you know that some banks shun certain industries whereas other banks might welcome these same industries?

However, most SMEs are not aware which banks are suitable for their respective profile and could waste precious time speaking with banks that are not the right fit.

Aside from traditional mainstream banks, there are also multiple lenders offering various financing options to SMEs. These include MAS licensed digital banks, financial institutions, and alternative non-bank financiers such as P2P platforms or B2B lenders.

Assisting SMEs with business financing remains our core business.

Due to our familiarity with the credit criteria of the various banks, we can help identify the most suitable banks for your company’s profile to ensure highest chances of commercial loan approval at the best terms.

If your personal credit rating is bad, your commercial loan application might be adversely affected.

When you apply for a SME loan in Singapore, your personal credit record will usually be assessed by the relevant banks. Your personal credit record will thus affect your company loan approval chances as well.

It is absolutely critical as a business owner to keep your personal credit score acceptable. Any negative impairments on your personal credit will adversely affect your business loan applications, making it next to impossible to obtain any form of business financing.

Therefore, always be conscious to protect your personal credit grading by paying all your personal credit cards, home loan, car loan etc on time. Settle any overdue payments promptly and be cautious not to over-extend your personal credit at all times.

Yes you can but options are very limited for new start ups. Most banks do not provide start up business loan for newly registered companies.

Most banks lend on track record and would require applicant company to have at least 1 to 2 years of operational business history before considering extending financing.

If your business is operational and at least 6 months old, a competent SME loan broker might still be able to help you secure business financing.

However, expect limited financing options for a start for very young companies and also smaller financing quantum. If you manage to secure any form of business loans, ensure prompt subsequent repayments to build up a good credit record for your company.

As your business matures and coupled with a good credit record, it’ll be easier to source for financing in future from more banks, with more options.

About Linkflow Capital

Linkflow Capital Pte Ltd is an independent Singapore SME loan consultancy firm incorporated since 2012. We assist businesses with financing solutions, through varied platforms including banks, financial institutions and private financing. We specialize in SME finance and through our expertise and extensive network, we help clients secure funding with low interest rates efficiently and hassle free.

  • Expertise

    We are familiar with the documentations and information banks will require as well as various banks’ business loan credit criteria.

  • Network

    We have access to more than multiple banks and financial institutions offering SME loans in Singapore, with relationships cultivated over the years.

Linkflow Capital does not purport to represent in any manner, nor is an affiliate of any banks, financial institutions or commercial lenders. We provide independent consultancy services in SME financing and working capital management through our network of financiers and private business financing solutions.