Best SME Business Loan Singapore
[2022] Compare All Banks

Free online loan assessment tool

Compare multiple loans from all banks at once

Business loans in Singapore are offered by over 20+ banks and financial institutions.

Different banks' criteria, rates and products are different. You need not call up every bank to source for the best offer.

Simply use this free online loan assessment tool to compare all SME business loans instantly!

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Which Bank Has Lowest Business Loan Interest Rate?

Typical unsecured business term loan interest rate range between 7% to 12% p.a. effective rate. Different banks and small business loan products bear different rates.

Use our loan calculator to check indicative monthly installment and repayment table.

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Business Loans
In Just 3 Steps

  • Step 1

    Enter your business name & email in the form.

  • Step 2

    Take 1 minute to input information. System will generate indicative banks your business might be eligible for.

  • Step 3

    See all your financing options instantly!

Business loan requirements

Minimum annual revenue of $200K

Operating for at least 6 months to 1 year

Minimum 30% local shareholdings

Minimum average daily bank balance of $10K

Bank loan for business criteria and documents required are different across all financial institutions.

Use a loan assessment tool to check your financing eligibility and best rates before application.

SME Loan Financial Institutions

Best business loan in Singapore

Which bank is best for business loan? Here are some popular banks' corporate loans:

Name Business Term Loan Business First Loan BizMoney Business Term Loan
Interest Rate Not published 7-12% p.a. 10.88% p.a. Not published
Loan quantum Up to S$500,000 Up to S$100,000 Up to S$350,000 Up to S$500,000
Repayment period Up to 5 years Up to 4 years Up to 5 years Up to 5 years
Facility fee Not published 2% of loan amount 2% of loan amount 2% of loan amount

Aside from these banks, there are more than 20 over 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.

How to get a business loan in Singapore?

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 & 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)

Linkflow Capital is a member of

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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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Frequently Asked Questions

How much bank loan can I get for business?

Maximum SME loan amount is typically between S$300K to S$500K for most banks. Loan quantum granted is dependent on business's revenue, current debt servicing ratio and credit profile.

As a very general rule of thumb, the maximum loan quantum a bank can extend to a particular SME is usually between 20% to 40% of the borrower's annual revenue. Different banks have varying credit policies on the maximum loan quantum they can grant. 

Are there any business startup loans available?

Most banks do not offer startup business loan. Your business must be minimally 6 to 12 months old to apply for financing. Even so, financing options and quantum are very limited for businesses less than 1 year old.

More commonly, banks will prefer at least 2 to 3 years of business history for reviewing applications. If the keyman of a relatively new business has at least 5 to 7 years of related industry experience managing another business in the same industry as an appointed director, this might help to mitigate the new business's lack of operating history.

What documents are required for a commercial loan application?

Different banks require different list of documents. Some common documents that might be requested for include:

  • ID copy of business owner
  • Income tax Notice of Assessment (NOA) of business owner
  • Credit bureau report of business owner
  • Latest 6 months operating bank account statements of the business
  • Latest 2 to 3 years financial reports or management accounts of the business
  • Latest 4 quarters GST form F5 (if GST registered)
  • Debtors and creditors ageing list, if applicable
  • Recent awarded contracts, purchase orders, accepted quotations etc
  • List of top 5 suppliers and customers (for B2B companies)
  • Operating premise proof of address (utility or telco bill)
  • Copy of operating license or professional certificate (for businesses in regulated industries that require licensing, certification or professional accreditation from relevant authorities)
  • Memorandum and Articles of Association (for Pte Ltd entities)

What is the SME loan application processing time?

Application usually takes 1 to 2 weeks to be processed once required documents are in order. For weaker or complicated cases, application could take up to 4 weeks. An experienced SME finance consultant might be able to help expedite applications and save on processing time.

What types of business loan options are available?

  • Business term loan: Lump sum unsecured loan disbursement, repaid over equal monthly term instalments, typically between 3 to 5 years. This is the most common form of financing instrument available for most SMEs.
  • Trade financing: Revolving working capital credit line facility to finance purchases of inventory and supplies. Trade financing is suitable for businesses that have to stock or trade in physical inventory and goods. 
  • Invoice financing/factoring: Short term credit facility to unlock cash in receivables. Useful for B2B businesses that sell to other companies on credit terms.
  • Property financing: Mortgage loan to finance purchase of commercial or industrial properties. SMEs can also pledge current property to banks for financing facilities. Cheapest form of financing due to collateral nature.
  • Equipment/machinery financing: To finance purchase of fixed assets such as machinery and equipment. Typically structured as hire purchase or finance lease.
  • Government financing schemes: Government assisted SME loans such as the Enterprise Financing Scheme and SME Working Capital Loan. These schemes typically bear lower interest rate than banks’ commercial term loans due to risk sharing mechanism by the government and are typically facilitated by Enterprise Singapore.

What do banks look for in a business loan application?

There are multiple credit criteria in banks’ credit assessment and underwriting. These are not made public and differs from each bank. Common factors that banks evaluate on include:

  • Age of business: At least 6 months to 1 year old but most banks will prefer minimum 2 to 3 years.
  • Business industry: Different banks might have different outlook on the same industry. The industry you are in could be deemed favorable to some banks, but might be classified as high risk to other banks.
  • Sales revenue turnover: Most banks require applicants to have at least a bare minimum annual revenue of $200K. However, many banks do set a higher benchmark and common minimum revenue requirement could be up to $700K to $1M per year for some banks.
  • Bank statements: Almost all banks will assess the latest 6 months operating bank statements of applicant company. Figures that are taken into consideration include average daily balances maintained, month end balances, any excess or overdrawn account due to insufficient funds, total crediting amount per month and cash flow volatility. In general, the higher the better for average cash floats maintained and total crediting amount. Most banks typically require a minimum of $10K average daily balances maintained in the latest 6 months bank statements.
  • Credit score: The business owner’s personal credit score is a critical component in banks’ credit evaluation. Most banks will not be able to finance companies where the keyman has a credit bureau score of HH, the worst grade. Past adverse defaults, recent discharged bankruptcies and multiple late payment records on current personal credit facilities are all flagged out as rejection causes.
  • Financial performance: Financial figures that are commonly assessed include profitability, net profit margin, gearing ratio, inventory cycle and working capital cash flow. Most banks will require the business to be profitable and with positive equity in the last financial year.

Do you need a personal guarantor for business loan application?

Yes, personal guarantee is required. By default, the managing director and majority shareholder will be required to provide their personal guarantee for company loan applications.

Some banks might also request for shareholders with significant shareholdings (i.e. >30%) to provide personal guarantee, even if they are not appointed as directors.

In certain situations where the keyman of the business has a weak credit score, banks might also require third party guarantors provide additional guarantees.