YOUR GUIDE TO UNDERSTANDING SINGAPORE BUSINESS LOANS

If you’re the owner of a medium or small business, you’ll require financing for your business during the course of your venture. In Singapore there are business loans available to expand your company, to cover any gap in your working capital or to finance purchase of inventory, and then renting out commercial properties or to purchase the property. This guide will provide you with a business term loans in Singapore.

In 2020 The government of Singapore introduced the government-backed commercial loan program browse around this website. The scheme was introduced in the course of the COVID19 epidemic. It was a means to give assistance to businesses. The loans are offered through Enterprise Singapore and the financial institutions that are part of the Enterprise. This is extremely appealing to businesses of all sizes because, in this instance the risk-sharing of the government can be up to 90%..

Enterprise Singapore offers three different credit facilities.

SMALL OR MEDIUM ENTERPRISE WORKING CAPITAL LOAN

  • The maximum amount of loan that is available is S1 million dollars.
  • The government can offer the risk share up to 90 90%.
  • The loan is available only to small and medium-sized businesses.

TRADE LOAN

  • For this particular loan, the maximal sum is S$10,000,000.
  • In this instance, too the government is offering an insurance risk share of 90 percent.
  • TEMPORARY BRIDGING LOAN PROGRAM
  • In this program the maximum amount of loan you are able to avail is S$5 million.
  • In this scenario the government can offer an amount of risk sharing that can be as high as 90 90%.

ELIGIBILITY EVALUATION CRITERIA FOR THE LOANS MENTIONED ABOVE

In order to be eligible to be eligible for these loans the financial institution has to assess the company in a holistic manner. Past performance, the current financial records of banks, etc. All of these will be examined. Additionally, the credit history of the guarantors is also going to be examined to determine whether the company is eligible to be funded through the loan.

Structure

These business loans for working capital as well as the program for temporary bridging loans are not secured. So, their loan arrangements are also comparable to loans for businesses that are unsecured.

UNSECURED BUSINESS TERM LOAN

If you’re looking for an unsecured loan that is not secured by any physical security such as equipment or real estate. It is best if you opt for an unsecure commercial term loan. For the unsecure term loan the security is offered through the personal guarantee of the director of the company.

ELIGIBILITY EVALUATION CRITERIA

Financial institutions will then analyze the company in a holistic manner based on the current financial statements, and the previous financial track.

STRUCTURE

A business loan that is unsecured offers the opportunity to have fun while still earning with a maximum of $500,000. The term of repayment for this loans is between 1 and 5 years. The interest rate ranges from between 7 and 12% annually and the administration fee is 1-5 percent of the loan amount.

Remember that the tenor, fees the loan amount and repayment timeframe may differ among the different banks. So, it is important to consider a non-secured commercial term loan which is reasonable and will meet all your business needs.

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