Best SME loans up to S$500,000: Standard Chartered Business Instalment Loan, UOB BizMoney Loan and MayBank Business Term Loan
UOB and Maybank can have the loans you need Standard Charters for a business loan in the range of S$300,000 to the content S$500,000.
Standard Chartered Business Instalment Loan
The default chartered business facility loan allows you to borrow between S$70,000 and S$300,000 free of collateral and a 1 to 3-year loan reimbursement period. This loan’s efficient interest rate will vary, but it is currently limited by up to 11%. To qualify, you have to be registered in Singapore and have a minimum sales of S$750.000 per annum for at least three years. Singaporeans or PRs shall own at least 50% of the company.
UOB BizMoney Loan
The UOB BizMoney Loan provides somewhat more capital for enterprises with a loan cap of up to S$350,000. The period of payment is also longer, up to 5 years. At present, the strong interest on this credit is 10,88% annually, with an installation fee of 2%. (a.k.a processing fee). Please note that an annual fee of S$500 is also available. The loan is open for the exclusive ownership of Singapore-registered and operating companies, partnerships, and private companies for at least three years.
Maybank Business Term Loan
The Maybank Business Term Loan may be appropriate if you are seeking a half-million business loan. This loan pays up to S$ 500,000 and has up to 5 years’ loan repayment. To qualify, your company should have an annual minimum sales revenue of at least S$300,000 locally, established at least for three years.
Alternative financing options for SMEs
If you don’t qualify for the SME loans discussed above, there are other ways to secure the finances you need to expand your business or keep it going. You could consider:
- Invoice factoring
- Credit lines
- Personal installment loans
The fact-factoring system is a tool for corporate finance that handles outstanding cash invoices.
How it works: You sell your unpaid invoices to a third-party company, which pays a part of the value of your invoices. The business that buys your invoices then takes obligation for collecting the invoice payments.
With invoice factoring, you can take up to 90% of the value of your invoices in cash. Many financial institutions in Singapore offer this option (is it also seldom known as receivables finance). While this might be an excellent way to get cash fast, know that you are sacrificing a part of revenue upfront. Also, you may still be held liable for any overdue or late invoices.
Another choice for businesses seeking capital is a credit line.
How it works: This provides your business a line of credit to draw upon — up to a stipulated cap. The benefit of a credit line lies in its flexibility; you can use the funds in your credit line account according to your requirements, and you only pay interest on the amount you have used. Credit lines also offer debt restructuring options to assist you in managing your borrowings.
Last but not least, don’t overlook personal installment loans. They offer a quick & convenient way to get the funds you need to tide your company over a dry spell or to pay your suppliers so you can stay in business. Typically, you can borrow up to 6 – 8 times your monthly salary, and you can also pick a repayment period that suits your schedule.