Small Business Loan

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You’re a struggling SME (small-to-medium enterprise) or small business owner, and you’re looking to increase cash flow with a loan. What are the choices? Let’s cover the small business loan options in Singapore & what you can do if you do not pass an SME loan.

When it comes to business loans, (3) factors matter most to you: the maximum amount you can acquire, the interest rates, cash disbursement speed.

Given that there are over twenty (20) private lenders, non-bank financial institutions, and peer-to-peer (P2P) lenders in Singapore, you’re unlikely to get the most suitable loan offer unless you apply individually with each lender.

The criteria they use to evaluate creditworthiness may be the same. But each lender places a distinct emphasis on each factor. Furthermore, their risk appetites vary too.

This is why two (2) lenders’ loan bids can be as low as $100,000, while interest rates are as high as 12% annually!

At Finitude, we’re a company loan platform specialized in helping your business find the best loans – with just a straightforward application form.

The Go-To Loan Platform For SMEs

And yes, all loans are unsecured – which means no collateral is required!

Whether your business is only ten-months old or has low revenue or poor credit score, we can help.

We work with private lenders, non-bank financial institutions, and peer-to-peer lenders.

Their larger risk appetites mean that less emphasis is placed on your business’s track record, annual revenue (most banks and financial institutions require a minimum of $300,000), business ownership, and credit score.

All that’s required is for your business to be a Private Limited Company with annual revenue of $100,000.

How It Works

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About your company & loan needs.

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A matched lender will contact you within 2 hours* to discuss your loan request further. 

What are the Business Loan Options in Singapore?

Business loans are a term used to describe all business-related credits offered to a company. There are many kinds of business loans: Some are just provided for whatever business needs you might have (such as managing cash flow or furthering your growth). In contrast, others are explicitly offered for specific business needs (such as machinery/equipment or property loans) or even types of businesses (start-ups). The most common types are covered below.

Why Might Your Business Loan Be Unsuccessful?

As you can see, SMEs in Singapore are provided with numerous types of company loans. The government has even stepped in to guarantee that funding is available to more small businesses. Nevertheless, your business loan application may still be unsuccessful – and also, you will typically only find out after applying for the loan & waiting two weeks for it to get processed. Here are some potential “problem areas” when you are trying to secure a business loan:

Credit Score

Business loan providers can also decide to reject your loan if you have a poor credit score. A low credit score causes banks to doubt your capability to repay your loan. And yes! Your credit score does impact the results, even if it’s for a business loan.

Track Record

Getting a business loan if you have a fledgeling business can be tricky. Providers typically require your business to be around for at least six months to qualify. Even if your company is established, they may require proof of your annual revenue to lend to you. So if you are only just beginning, it may be challenging to get a business loan.

Business Ownership

Government-aided financing is only open in (and available in) Singapore and is owned by Singaporeans/PRs at least 30 percent. You will find it more difficult to do so secure your business loan if you do not have enough Singaporean/PR shareholders.

Personal Loans for Small Businesses in Singapore (2020)

If you are unsuccessful or do not pass for a small business loan, you may consider getting a personal loan alternatively. A personal loan has somewhat more relaxed requirements; however, the loan amount is also much smaller – for example, four times your current salary. Therefore, personal loans are best suited to salaried workers looking to start their side businesses and don’t need much to kick it off.

Personal Loans for Small Businesses in Singapore (2020)

Best For Foreigners

Best For Low Income

Fast Loan Disbursement

Business Loans vs Personal Loans in Singapore

Loan Amount Up to S$ million Up to 4X monthly salary
Loan Period Up to 5 years Up to 7 years
Documents Required ACRA records, business financial reports, etc. Personal salary records
Business Age Requirement Min. 6 months, some require min. 2 years None
Processing Time 2 weeks or more Within a few days

Common Business Loan Reasons

HSBC Personal Loan

Lowest EIR of 7%! Plus $108 Cashback!

MoneySmart Exclusive: As low as 3.7% p.a. interest rate + S$0 processing fee + $108 Cashback

Online Promo: Min. loan repayment of 1 year to the max. of 7 years

Online Promo: *E.I.R: Effective Interest Rate of 7.00% p.a. is applicable for all loan tenors

If you are a foreigner in Singapore who’s looking to kick-start your business idea with some funding, the HSBC Personal Loan is an excellent point to start. Unlike other banks, which may require very high minimum income requirements on foreign lenders, HSBC’s income requirement is just S$40,000 per annum. That’s within grasp for many PMETs here. You will also require an Employment Pass with a minimum of one year validity to apply.
If you are commission-based or self-employed, HSBC also gives it to you. You will need to show evidence of at least S$40,000 a year in income.
With an HSBC Personal Loan, you can borrow up to four times your monthly income, capped at S$100,000. (Special allowance for those earning S$120,000 a year and up to eight times your monthly payment, capped at S$200,000.)
Overall, HSBC Personal Loan is a good option for small business owners as it boasts one of the most inexpensive interest rates in Singapore and the longest loan tenure of up to seven (7) years.
HSBC’s personal loan interest rates are assured when you apply through MoneySmart, so you need not worry if you have a less-than-stellar credit score from past mistakes. You can get in-principle approval for your loan within 1 minute.

Standard Chartered CashOne

3.88% Interest rates + cashback!

Online Promo: Get 50% cashback on your 1st month’s instalment + $199 Cashback!

Online Promo: Instant cash disbursement + $20 cash back!

Online Promo: *E.I.R: Effective Interest Rate of 8.04% p.a. based on three (3) Year loan tenure

Online Promo: Min. loan repayment of one (1) year to Max. five (5) years

Standard Chartered’s personal loan product, CashOne, has a lower-than-usual income requirement for locals. You just need to be earning S$20,000 yearly to qualify for this loan, so it’s great for low-income earners who want to start their own company. For foreigners, the income qualification is S$60,000.

If you qualify, you can borrow up to four (4) times your monthly income, capped at S$250,000. It’s hassle-free, too: You can get your loan immediately approved & disbursed to any bank account (no need to set up a StanChart bank account).

Standard chartered personal loan interest rates are also assured for customers who apply through MoneySmart. Be assured that your credit score will not result in a sky-high interest rate.

Citibank Quick Cash

0% interest rates for 1 year tenure

MoneySmart Exclusive: 3.99% p.a. is only valid for three (3) years loan tenor and min. loan amount of $20k

Online Promo: Min. loan repayment of (1) year to Max. five (5) years

Online Promo: *E.I.R: Effective Interest Rate of 8.50% p.a. based on three (3)  Year loan tenure

If you are new to Citibank, you can enjoy preferential interest rates on Citibank personal loans, exclusively on MoneySmart.

To get the preferential interest rate, you will require to borrow at least S$20,000. We would not approve borrowing more than you need, but this amount is fair for those who are planning to kick off their small companies.

To pass for a Citibank personal loan, you need to be earning at least S$30,000 p.a. (Singaporeans/PRs) or S$42,000 (foreigners).
The maximum you can borrow is four (4) times your monthly salary, and you can choose a loan period of up to five (5) years.
When applying for Citibank personal loan, you will need to set up a Citi deposit account if you don’t have one already. Your funds will go in there. You can apply for both products in the same form, and the cash will be in within two (2) to five (5) working days.

Get Approved From The Comfort Of Your Office

In every company, cash flow is essential.

It makes no variation how much money the business makes will generate in two years if it doesn’t have sufficient funds to get by.

Employees need to get paid. Landlords will ask for rent. And if not taken advantage of quickly enough, They can miss market opportunities.

Complete the form underneath to receive a free loan appraisal and learn the maximum amount you can borrow – at today’s lowest interest rates.


1.Build personal and business credit scores

Personal ratings for credit indicate that you can repay your personal debts, including credit cards, car loans, and mortgages. Keep small business lenders looking at how you manage debt requires a personalized credit score.

Include any inaccuracies and the full payment of bills in your report to improve your personal loan.

More established companies with credit bureaus such as Experian, Equifax, and Dun & Bradstreet have business credit scores (ranging from 0 or 1 to 100). Business credit steps involve establishing business lines and maintaining public records smoothly.

To qualify for an FR Capital loan or traditional small business bank loan from the government, you’ll probably need excellent company credit and an outstanding personal loan. Online creditors can be more lenient and emphasize cash flow and track records for your company instead.

2. Know the lender’s minimum qualifications and requirements

Typically, you will have to meet minimum criteria for credit, annual income, and business years to qualify for a business loan. If you fail to perform in one area but over-perform in another, specific lenders may be flexible.

Qualifications may also differ according to the type of company loan you want. For instance:

  • Loans supported by the Singapore Small Business Administration: You have to meet the FR Capital definition of a “small” enterprise, act as a profit-making enterprise and not become an unacceptable business such as life insurance companies and financial enterprises such as banks. Also, all government loans without past defaults must be current — if you’re late on federal student loans, for instance, or government-supported loans, you’ll be disqualified.
  • For bank and corporate loans online. Banks and online loans typically take on traditional loans, but online loans have fewer demands. Some online lenders, for example, offer bad loans or can approve companies that are not in business for so long. A costlier loan generally accompanies this easy qualification.

3. Gather financial and legal documents

When you apply for a small business loan, banks and other traditional lenders generally need a wide range of paperwork. You may require financial and legal documents for a small-scale loan:

  • Returns on personal and business income.
  • A statement of balance and revenue are both financial statements.
  • Bank statements, both personal and business.
  • A photo of your driver’s license.
  • Commercial leases.
  • Business licenses.
  • Articles of incorporation.
  • A summary was showing relevant management or experience in the business.
  • If you have a limited business history, financial projections.

Online lenders can offer fewer documents and faster underwriting to the streamlined application process. Some online lenders can provide you with rates comparable to bank loans if you have good credit and strong business finances.

Make sure you compare options to find the loans that suit your company’s needs when receiving your company loan.

4. Develop a strong business plan

The lenders will want to know how you plan to use the money, and you can pay it back. You may have to draw on a sound business plan that details the purpose and expectation of the loan.

The following should also be part of your business plan:

  • Company description.
  • Product and service description.
  • Management team.
  • Industry analysis.
  • Facilities and operations plan.
  • Current and projected financials.
  • Promotional, marketing, and sales strategy.
  • SWOT analysis (strengths, weaknesses, opportunities, threats).

You should prove that you have your business plan enough cash flow to cover your current obligations as well as new loan payments. This can increase the lender’s confidence in your business and increase the chances of your loan approval.

For estimating your monthly credit payments, use FR Capital business credit calculator:

5. Provide collateral

You may need to provide collateral to support the loan to qualify for a small business loan. The business collateral is the asset that the loaner can seize and sell if you cannot make your payments, such as equipment, real property, or inventory. It is a way for creditors to recover money if your company fails.

For example, FR Loans over S$25,000 in capital require collateral plus a personal guarantee of 20% or higher for each company owner. A unique warranty covers your credit score and your personal assets.

Specific online lenders do not need guarantees but may want a personal contract. Others can also pursue an entire lien on their business properties – basically a different type of collateral – to allow the creditor to take out the commercial property (real property, inventory, equipment) to collect an unpaid credit. Each borrower has its own rules, so ask if you are unsure of what’s necessary.

If you have no collateral or want to risk losing your personal or business assets, unsecured corporate loans may be a better option.

The start-up or expansion of an existing company may be based on business loans often used for the security of inventory, purchase equipment, renting functional space, hiring employees, or covering a large number of other costs. But new companies can find entrepreneurial loans challenging to obtain. Be aware of the eight blocks you can prevent for a small business loan from being approved.

Credit reports are one of the instruments used by lenders to determine the credibility of a borrower. You may be refused a loan if your credit report shows that you have failed past due diligence in paying back debts.

“For reasons outside your control, very good people sometimes have credit problems, and sadly this is a genuine barrier to entry into the world of small enterprises,” Steck said.

A small company loan with a loan score lower than 700 is challenging to qualify.

“Score 720 appears as the magic number, above which your probability dramatically increases and below which it dramatically decreases,” said Brian Cairns, founder of ProStrategix Consultancy.

Cairns recommends that you focus, if you can, on fixing your score below 700. First, check your personal and corporate credit scores to make sure that they are correct. If errors are found, correct them before the loan application process is started. Each of the 3 credit reporting firms may order a free personal credit report on or individually based on TransUnion, Equifax, and Experian, from each credit reporting agency. Contact Equifax, Experian, and Dun & Bradstreet to check your company credit score.

You should also create a solid personal credit score and reduce any debt before applying for a company loan.

Jared Weitz, CEO, and founder of United Capital Source, the lender to small and mid-size enterprises, said: “The better your personal finances are, the more likely that you are to be approved for a reasonable lending option.

“The majority of the loans require some form of down payment and this is usually different based on the financial history of the borrower and the collateral placed on the loan,” added Weitz. “Accordingly, many loans range between zero and 20% below loan payment.”

If, after these actions, your credit is still far from ideal, consider non-traditional financing options – which tend to focus less on credit ratings – before giving up on loan.

  1. Calculate startup costs. Until you know how much you need to borrow, you cannot apply for a startup loan. A single-time factor in prices, including permits, licenses, equipment purchases, and ongoing expenses such as payroll, rent, and inventory for a minimum of one year. This gives you a realistic picture of how much money your business needs to get out of hand.
  1. Write a business plan. A strong business plan demonstrates that lenders have taken things such as your target market, price structure, marketing costs, potential challenges, and industry competition. Enter the calculation of your startup costs, the detailed funding request, and the expected revenue. The aim is to show your business’ lenders that they will be successful, particularly if you don’t have multiple years of profit.
  1. Choose a loan and lender. Determine the option for your SBA startup loan, and you will find a participating loan.

To search for a bank, a credit union, or a local lender participating in your chosen lending program, you can use the SBA Lender Match tool. Remember that the SBA supports the loan, but the borrower processes your request and then asks if it is approved.

  1. Prepare your loan application and apply. You will depend on the credit and lender to complete the SBA startup loan application.

You will probably have to supply the following documents in addition to your business plan and loan application:

  • Personal tax returns.
  • Cash-flow projections.
  • A list of collateral.
  • Contracts, quotes, or purchase agreements.

You will also need to show business finances if your business is already operational, including:

  • Business tax returns.
  • Balance sheet and income statement.
  • Business licenses and permits.
  • List of current business assets.

The complete loan process can take 30 to 90 days, depending on the type of loan, from applying to your bank account.

Many of the leading financial institutions in Singapore are now offering SME loans to address the financial needs of small and medium-sized enterprises. The lenders have eligibility requirements for these business loans, as are all types of loans.

For business loans, you should know some of the essential requirements for eligibility.


For independent professionals (SEPs), such as doctors, chartered accountants, architects, and corporate secretaries, a business loan is generally available. This type of loan is eligible even for self-employed non-professionals (SNPs), for example, producers, resellers, dealers, suppliers of service, and owners.

SME loans can also be requested by corporate entities, such as partnerships, private limited companies, and limited liability partnerships.


The requirements for business turnover vary greatly depending on the type of lender and loan you choose. For example, to meet business credit eligibility, a Line of Credit (LOC) credit requires a company to have a minimum turnover of S$10,000.

Similarly, your annual business turnover exceeds S$40,000, and an unsecured business loan is approved only.


While loans for start-ups are now also available, the bulk of business loans are only approved if the business owner has extensive business management experience.

If you are looking for small business lending, you will need to have at least 5 years of experience and a minimum of 2-3 years of operations in your company. If you have extensive knowledge of running your business, you can also obtain a better business loan rate.


No lender would like to give a loss-making company a loan as this significantly increases the likelihood of loan default.

Therefore, most of the best lenders only accept SME loans if the company has made profits for at least 2-3 years.


Only people over the age of 21 years can apply for a corporate bank loan. The applicant’s age should not exceed 65 years at the time of the loan maturity.

The lender will also take into consideration the applicant’s loan authorization credit score. In general, if your credit score is over 650-700, the loan will be approved easier.

A loan for Small and Medium-sized Enterprises (SME) is also known as a loan. It is a loan facility for the long-term, operating capital, growth, or expansion needs of medium- and small enterprises. It can be beneficial for SMEs, especially for women-owned enterprises which would otherwise find it difficult to obtain funding, to realize their full potential with appropriate financing.

At FR Capital, we know it’s essential to build and expand your organization the way you envision it. With our FR Capital Rebate, you are in the driver’s seat. You control when and how to grow your company.

The FR Capital SME Term Loan with Prime Rebate offers competitive rates for small businesses and customized repayment options suitable for your company’s needs. It provides you with a specific amount of funds perfect for fixed asset acquisition, construction, or boosting your permanent working capital. It is also an ideal option for covering your organization’s long-term financing needs while preserving your funds.

The FR Capital SME Term Loan with Prime Rebate comes with a maturity of 1 year up to 7 years. Repayment is through amortization of principal and interest during the loan period. What’s more, it comes with Prime Rebate, which allows you to get a loan interest discount whenever you make advance or excess payments on your monthly due, making your money work for you.

A loan specifically designed for your businesses that, from time to time, requires financing to bridge gaps in your cash flow. You can use this type of loan to fund day-to-day operations, replenish stocks or inventory, or any other short-term requirements.

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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.