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Driving Business Financing
in Singapore.

To obtain working capital for your company, we work with banks, approved lenders, and other financing institutions. With extensive experience servicing SMEs and Businesses across all industries, we can provide you financing solutions quickly & easily – and at a low cost.

For a financing expert to contact you for a no-obligation discussion, please click here.

Low Repayments and Fees

Fast Approval Time

High Approved Loan Amounts

FR Capital Loan helps you run your Singapore SME Business smoothly.

These right opportunity doesn’t come by easily.

When it does, don’t let the lack of finances stop your company from moving forward. Taking a business loan or a source of funding to capitalize on business opportunities is somewhat familiar in Singapore.

Just like investments, leveraging on business loans is a form of investment in your business’s future. Business owners take finances and effort seriously to reap the rewards in the future.

We are one of the largest financial institutions in Singapore, where we are dedicated to serving our clients to the best of our abilities. We have built a first-rate reputation & are continually crafting better loan packages for our clients.

A business loan might be the stepping stone to taking you where you want to be. Let us walk with you.

Purchase Order Financing

Purchase order financing gives you sufficient capital to purchase goods & inventory to complete projects.

Think of it as vitamins, resources that will assist you in growing!

With a purchase order financing loan, you get the opportunity to improve competitiveness, differentiate yourself from others while raising the barrier to entry for your industry.

Additional cash flow helps you improve production capacity while lowering your long-run average cost (LRAC). With the ability to achieve more orders & projects, you naturally boost your market share & your company’s presence.

With Us, you can make financial input without any collateral. We also suggest a simple loan application process that replies within a day.

With our unrivalled financial resources & system, let us walk with you.

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Payroll Financing

Payroll financing is short-term loans that help you cover employee remuneration.

With this financial assistance, you can concentrate your capital on other aspects of the business, such as business expansions or research & development.

Year-end bonuses & rewards are usually given to employees, which sometimes strain the business’s finances. With payroll financing, companies can disburse salaries while not harming their finances.

As many surveys have shown, happier employees work harder & are much more productive.

If you need extra cash for your employees’ payroll, you can apply for a payroll financing company loan with us.

As one of Singapore’s best financial institutions, FR Capital is always ready to assist local companies. We offer accessible & fast loan application processes that deliver an outcome within a day.

Working Capital Loan

Stop struggling with everyday operational costs, & don’t risk hurting your credit score.

Working capital loans are designed to help businesses increase their liquidity in daily operations.

It is highly convenient for retailers or manufacturers who have high cyclical or seasonal sales. During specific periods of the year, sales may be lower.

The loans cover expenses such as employee payroll, rental fees, and debt repayments. Working capital loans are not usually used to purchase long-term assets or investments.

Having a significant and convenient source of credit will help your business expand & solve cash flow issues. As a bonus, it will also give you and your staff peace of mind.

You need to focus on essential & paramount tasks that have a substantial impact on your business model.

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Invoice Financing

Are you waiting for your invoices to pay? Stop waiting.

With invoice financing, you can unlock funds trapped in invoices. You get to raise your cash flow quickly, allowing you to focus on business operations without problems.

Imagine paying all of your suppliers on time while focusing on essential business tasks. That’s what having invoice financing is.

Reduce all hassle with FR Capital invoice financing, where we can scale loans to suit your business needs. Furthermore, our financial officers will get back to you within a day.

We explain the entire process to you.

Interest Rates on SME Loans in Singapore

9 out of 10 companies fail in the first year. One of the most popular reasons for a company to fail is due to being undercapitalized. One way to overcome this obstacle is by taking a loan. But, this also shows the entrepreneur abuses from loan sharks.

Thankfully, Singapore is a progressive country that embraces entrepreneurship & does everything it can to stimulate company growth. The reason why Singapore has strict rules that govern SME loans, or also known as small & medium enterprise loans.

In most circumstances, Singapore laws are set in place to stop the practice of loan sharking. This way, upcoming companies are protected from abuses & have increased odds of success.

Current Interest Rates on SME Loans in Singapore

Keep in mind that interest rates are typically moving. The figures below only constitute the rates at the time of writing this article.
Another thing to think about is where you’re getting your loan. As a rule of thumb, the interest rate on unsecured loans is generally more expensive when compared to secure loans—also, the size of the bank matters. Bigger banks will often give you cheaper interest rates but may be more challenging to get approved.

  • SME Micro Loan
  • Unsecured Business Term Loan
  • Trade Financing Line
  • SME Working Capital Loan
  • Overdraft
  • Factoring / Receivables Invoice financing
  • Commercial/Industrial Property Loan
  • Equipment/Machinery Loan
  • Alternative Financing or P2P Crowdfunding
  • 6.5% to 7.5% per annum
  • 10% to 13%
  • 6.75% to 8%
  • 6.5% to 7.5%
  • 10% to 13%
  • 6% to 8%
  • 1.3% to 2.5%
  • 5% to 8%
  • 1% to 5% per month

Keep in mind that the interest rate figures above are in EIR or effective interest rate.

What is EIR?

Calculating the interest rate of a loan can be complicated. Most people get the numbers wrong most of the time. To make it easier, we’ll discuss the basics.

Some lenders will give you an interest rate when you take a loan. The next question to ask is if it’s the nominal, accurate or effective interest rate.

The nominal interest rate is perhaps the easiest way to express. It’s just the loan amount & the interest you need to pay. The actual interest rate generally takes into account the inflation factor. The effective rate is what you should focus on because it has the most significant impact on compounding.

Usually, the interest rate between nominal versus effective rate is very minimal if the period is shorter. But, on more extended periods, the effects of compounding will start to kick in & may surprise you.

Calculating the effects of an effective interest rate can be very complicated. A more straightforward way to do it is to use a loan calculator. There are plenty of loan calculators you can use online that are free to use.

Conclusion

The subject of SME loans is a very rough sea to navigate through. It would help if you worked with a professional to help you get the loan you want or need at the rate and terms beneficial for both parties. If you need a recommendation, FR Capital.sg is there to help you. They have loan specialists in Singapore lending laws and are continuously updated to help you find the best rates.

Benefits of a Business Loan with FR Capital

Ease of application
and approval

0% Processing fee
for business loans

Flexible loan tenures

Increased
convenience

If you have inquiries or concerns regarding business loans, don’t hesitate to contact the specialists here at FR Capital!

We work with the following lenders

How to Get a SME Business Loan in Singapore

Supporting both the expansion & operations of a small business that’s growing fast requires extra financial support. Acquiring a business loan in Singapore will help you bridge the gap whenever capital investments are needed, may it be to expand your workforce, move to a larger commercial space, or add more branches.

Since you can fund your business in Singapore in various ways, this article aims to help you make the best choice on which method to use.

Check out your best financing options below.

Getting a loan from banks or Peer-to-Peer (P2P) lenders may take 2 -4  weeks to complete. Do you want to raise money as soon as possible? It’s likely through the following options:

Types of Loans

Get accurate and Updated Loan Advice from a team of loan specialists

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Get FR Capital to Help with Your SME Loan

About FR Capital

Easy Way to Get  Your Loan

  • Search Loan Options or Enquire Directly Here

  • An FR Capital specialists will call you based on your selection

  • We work with you for documentation

  • You relax, & let us get you financing

  • We will reach you when business financing has been approved

You might be disappointed if you have just founded a new company and sourced a startup company loan in Singapore. There are limited banks with no operating track record that offer a new enterprise unsecured business loan.

Most banks require borrowers to be operational at least 2 to 3 years before considering applying for a corporate loan.

A competent FR Capital consultant can provide alternative financing options for you if your business is active for at least 6 months to 2 years and has a decent cash flow. But prepare yourself for the limited funding options for the beginning.

For brand new startups, most banks believe the risk of bankruptcy is too high. You may want to find other finance channels instead for entrepreneurs to obtain a loan to start a business.

The familiar sources of startup capital are personal lending from banks, personal savings, or funds from friends or family. If you’re a fast-scale technology startup, you will also have to offer private equity funding, angel investors, and venture capital.

When applying for a business loan, you will need to submit the following documents: Annual Business Turnover: Minimum S$. 25,000 or above (for existing businesses or enterprises) Non-Collateral Overdraft.

Your loan aim will help you to determine if a short-term or long-term need is being fulfilled. For example, the finance requirements for buying a rapid recess stock differ markedly from purchasing an expensive heavy equipment piece or a new restaurant location. For instance, it might not be worth borrowing for the inventory sold over a four or five-year term.

If you go to business for yourself, it may be problematic to find funding, but it certainly is not impossible. You can apply for loans from many sources, including government, banks, and credit unions if you can prove that your business idea is practicable and if you have a solid financial history.

Show That Your Business is Ready

When you apply for a corporate loan, your business plan is the first thing the lender asks for. A business plan explains how you plan to generate money from all sources of income, how your expenses will be, where your market is, and how you will bring your goods or services on the market. In addition, before applying for a loan and creating a bank account specifically for your business, you should also decide your company structure, such as a limited liability company or company.

Look for all Available Loan Programs

New companies from government and local governments often have loans available. Scour the area you plan to open shop on your town, county, and state websites. In the past, New Jersey has, for example, offered various options for loans and loans to small firms with additional funding options for specific sectors, such as technology, production, and life sciences.

In Singapore, SMEs can apply for loans ranging from S$5,000 to S$500,000 via FR Capital. Not only are the lenders more motivated than the bank to lend your money, but you can secure favorable conditions in these government and local government loans.

Banks and Credit Unions

You may find it more than willing to lend your new enterprise funds to your bank or credit union if your personal finances are solid and have a great business concept. In other cases, if you have collateral, such as a house or other property, it can be willing to lend you the loan if you don’t get away with the credit. You can give lenders money as a personal loan if you have an outstanding loan rating. You will pay the money with a personal loan even if your new company leaves the business.

The company should have annual minimum revenue of 5,000 SGD per year. When applying for the loan, the applicant should be at least 21 years old and at the maturity of the loan not older than 65 years.

When creating a credit, every credit source wants to reduce its risk. One way to do this is to get additional financial guarantees to secure your loan if your company fails to pay it’s repays. This usually takes the form of receivables, facilities, or some other easy-to-sell assets for a company.

A further qualification for an enterprise loan may include providing the company’s owner with a personal guarantee of their loan or providing additional collateral such as personal property or other financial assets.

Many companies, big and small, rely on borrowed capital to fuel business growth and fund business initiatives daily. Many small businessmen are asking, “Is it difficult to receive business loans, especially in the present business climate?”

It is not a short answer, as several factors go to the approval for a company loan. In general, however, the greater your chances of being approved, the longer you are in business, your own personal and corporate credit records, and the better your financing shape is.

Business loan approval factors

You may be given different qualification chances depending on the type of loan and your financial and credit situation if you want to be approved for business loans. Some common factors are considered by commercial lenders when examining your application.

Credit history

With a solid business loan history and a track record of your financial commitments, your chances of being approved with favorable conditions for a business loan can increase. Most corporate lending companies also check your personal loan score to get an idea of how you manage your money. Some even determine if they are willing to take your application into account or not. This can be true regardless of whether your company is brand new and not yet or for several years has had a credit history.

It can show you that you are not responsible for credit and that you are likely to be reluctant to accept your petition for a small business credit if your personal credit history is not in good form. However, if your credit is excellent, it shows that lenders take your debt seriously and make every payment more likely.

Based on what you have done in the past, lenders are trying to evaluate in the future so that the better the loan history, the better the chance of a successful borrowing application.

Time in business

Although it is not your age for lenders, your company’s age does. Recall, the longer you have a track record, the better; they try to estimate what you’ll be doing based on what you’ve done in the past.

For example, most traditional lenders, such as banks or credit unions, prefer to look into business for a couple of years, but not all lenders.

Some online and alternative lenders have less business time – if you have only been in business for six months, some of them will work with you and your company. However, a loan for an idea-story start-up can be essential. There aren’t many options without revenue or a track record.

But think about it: Lenders who require you to be in business for a time usually study you to be less of a risk to offer a lower interest rate. On the other hand, lenders willing to lend to new owners can charge higher interest rates to offset the risk of failure.

If they are unemployed, the borrower can receive business loans, but several facets influence their chances of approval.

“Securing financing while unemployed is a hard but not impossible task,” said Rob Schmidt, founder of 29doors.com and former trading banker.

He said most lenders would follow “five C’s” for loans: character, capability, capital, collateral, and conditions.

“When you show a viable source of reimbursement, the financing of a new startup or debt project can generally be achieved,” said Schmidt. “If you can persuade them that you will have no difficulty repaying your credit regardless of their jobs, you will have a greater opportunity to receive financing.”

There can be contradictions with how funding can be obtained as an unemployed borrower. Schmidt said that one way to get money is to be wealthy independently. He said that most corporate loan applications are from self-employed entrepreneurs with business history.

Jeanette Dugas, Florida’s certified public accountant, helps customers prepare business plans which the banks will submit when requesting a Business loan. She agrees with Schmidt that the banks want to lend stable financing, despite this ruling.

She said banks must reach some benchmarks to lend money responsibly. Although unemployed people are not deal-breakers, the application for the loan is subject to other factors. If a borrower is unemployed, he does not receive a different source of income; it will be considered a hazardous bank venture.

“The cash flow is an important factor for a banker, so the main source from which the bank can be refunded is a permanent job,” said Dugas. “To this, a certain industry or line of business can be indicative of a level of experience and success.”

Schmidt stated that a viable idea in the following way is to obtain funding. Creditors have to present a well-developed business plan and a sufficient financial background for reviewing a lender.

A borrower’s third step is to illustrate a logical repayment plan. Banks focus mainly on the risk factor. It is essential to have a way of repaying if borrowers can prove that some revenue and larger collateral are available to secure the loan, their chances of authorization increase.

The final approach is to persuade other wealthy persons to guarantee the company loan by creating credibility and reinforcing the company package.

Schmidt said that when banks determine a loan amount, they look back to historical financial performance. “If you have strong background, high net worth, high liquidity and a viable project, you will probably get a loan although you don’t have a paycheck from an enterprise technically.”

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About FR Capital

FR Capital is a Singapore consultancy firm that helps SMEs to secure business loans from banks and financial institutions. We concentrate on SME finance, and through our expertise and network, we help clients secure funding with low-interest rates efficiently and hassle-free.