Compare All SME Loans
in Singapore

SME loans are financing facilities catered for small and medium enterprises (SMEs).

SME loans can be used for financing expansion growth, fixed asset purchase, general working capital cash flow management or purchasing inventory.

• Financing expansion - SME loan can be used for new outlets or branches expansion, with funds deployed for fitting out or rental deposits. Funds can also be used for hiring of manpower to expand your business's team and talent.
• Working capital - A SME loan can be used to plug operational cash flow gaps or seasonal dips. Commonly used for working capital gaps between buyers' payment terms and sellers' purchase terms. It can also be used to finance purchases of larger volume of inventory for fulfillment of bigger buyers' orders.
• Asset purchase - SME loans can also be used to finance the purchase of fixed assets that the business expects to derive positive ROI or productivity gains over a term of period. Such lumpy asset purchases can be financed and stretched over a longer period to ease cash flow.

The maximum SME loan amount for most banks range between $300K to $500K.

However, this is subjected to other credit factors, and could vary across all banks. Main credit metric that affects maximum loan amount would be the business's revenue. Other important factors include age of business, cash flow, and financial performance.

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 2 weeks.

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

If you manage to secure a loan approval after bank's credit review, it takes another 1 week or so for funds to be disbursed.

From application to receiving funds, expect a turnaround time of between 3 to 5 weeks on average.

For SMEs who can’t afford to wait, there are non-bank alternative funders who could process loan applications within 1 to 3 working days. Interest rate are typically higher compared to banks' options.

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

Factors that affect interest rate include loan quantum and applicant business's credit profile.

You can find out the current market interest rate via SME loan comparison portal such as smeloan.sg

• Unsecured business term loans are suitable for all SMEs who require financing over 3 to 5 years repayment terms.
• Trade financing facility is suitable for businesses that needs to purchase physical inventory, materials and stock with credit terms.
• Factoring/invoice financing is suitable for business selling to major corporate buyers such as MNCs and government bodies on credit terms, and need to advance payments from receivables. 
• Asset based financing such as commercial property loan and equipment/machinery financing is useful for financing acquisition of physical assets. 

To apply for and get a SME loan, generally most banks require the business to have minimum 30% local shareholdings, preferably at least 1 year old, and annual revenue of $200K minimally.

There are multiple other credit factors and nuances that determines financing eligibility. Use an online SME loan comparison tool such as smeloan.sg to check indicative financing eligibility.

The business owner's individual credit rating and credit conduct record is a critical factor banks assess for business loan applications.

Negative impairments on your personal credit will adversely affect your business loan applications.

Always be conscious in protecting your personal credit score by keeping all your personal credit facilities payment prompt. Settle any overdue payments  and be cautious not to over-extend your personal credit.

Options are very limited for new start ups. Most banks require applicant business to have at least 1 to 2 years of operational business history.

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

However, expect smaller financing quantum if your business is below 1 year old.

Government loan for SME falls under the Enterprise Financing Scheme by Enterprise Singapore, a government entity.

SMEs can apply for such government assisted loan facility via participating financial institutions (PFIs). The financial institutions will assess and underwrite such loans, subject to their credit approval. 

Government assisted financing schemes typically has a risk sharing mechanism from the government entity (Enterprise Singapore) to the PFIs. This risk sharing mechanism incentives and encourages banks and financial institutions to improve credit access to SMEs and could also lower interest rate and cost of financing for SMEs.