FR Capital Singapore SME Micro Loan

Call: +65 8336 3133 or Email Contact@Frcapital.sg

Affordable rates and flexible terms
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early repayment or hidden fees

Government Assisted Financing Scheme for SMEs

The SME Micro Loan is a government-assisted financing scheme to help local SMEs access financing. Enterprise Singapore will provide risk-sharing with participating banks & financial institutions to help SMEs with financing.

Access up to $100K working capital to improve your business. SME Micro Loan can be used to handle daily operations and cash flow.

We can give your company a direct comparison of all bank’s SME Micro Loan rates and also eligibility terms. For larger loan quantum, businesses can also see the SME Working Capital Loan as well as the Temporary Bridging Loan Programme.

Secure the funding you require to develop and scale your business to the next level. Get a free loan assessment and access to all banks Micro Loan options now, fast and hassle-free.

Businesses face these challenges 

affecting their growth potential.

Even in tough times,
we’re here for you.

Did you know?

For various reasons, most small enterprises do not receive grants or bank loans, and they meet at an early end. Cash-IN-Asia can help you solve the many challenges of your finance.

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Businesses have closed down due to Covid-19.

So where can you go?

Cash-IN-Asia helps small businesses
in Singapore with working capital and
cashflow solutions of up to $150,000*

  • Apply in just 3 minutes

  • Get approved in 3 hours

  • Receive funds in 3 hours

SME Micro Loan Eligibility Requirements:

All this from the
comfort of your home

  • Annual fees waived
  • Pay for only what you use
  • 100% digital application

SME Micro Loan Program Features

Mirco Loan Participating Financial Institutions

SME Micro Loan Interest Rate

The interest rate for the SME Micro Loan program is subjected to the participating financial institutions’ risk assessment process.

Qualified SMEs can inquire with the participating banks and financial institutions to determine their respective SME Micro Loan interest rates.

Sell all SME Working Capital Loan Options in 3 Steps

You only pay when you withdraw

Calm your mind by selecting one of the two Business Cashline repayment solutions created for your needs!

  • Daily interest charge 0.072%

  • Minimal monthly payment
    10% or S$200, whichever is higher
  • No early repayment fees

  • Monthly interest at 1.7%-2%

  • Choose between
    6 or 12 months tenor

  • No early repayment fees

How We Can help

SME Financing Institutions

For possible partners or source of funds, we welcome collaborations to bring more funding products to our platform. Kindly contact contact@frcapital.sg

Join hundreds of SMEs just like yours who entrusted us to help grow their business

Free Loan Assessment

Enter your business name & email below to see all your best SME business loan options instantly!

    The Enterprise Singapore SME Micro Loan is a long-term, low-interest small enterprise loan launched to help Singapore SMEs.

    The Singapore Enterprise is a government-related agency that offers small, medium-sized enterprises (SMEs) grants and finance schemes to boost Singapore’s small-scale business growth and development. While the Singapore company does not loan any money, it carries 50% of all default risks of a loan.

    A small business loan program in Singapore, the SME Micro Loan Scheme, is targeted at younger and younger companies. If conditions are met, up to S$100,000 can be paid to an SME delivered over 4 years.

    Enterprise Singapore is the guarantor of up to 50% of the credit risk for companies that have been in business for less than 3 years. The microloan would be opened to emerging companies, which typically have a high risk of default. 90% of all local companies make up emerging companies.

    Companies have to be registered and operate in Singapore to qualify. It would help if you had a local shareholding of at least 30%. Annual sales are expected to fall below S$1 million, or less than 10 employees.

    Group sales shall not exceed S$100 million, or group employment shall not exceed 200.

    The SME Micro Loan provides support for the government to provide access to funding to local SMEs. Enterprise Singapore will offer financing for small and medium-sized enterprises to participating banks and financial institutions.

    To grow your business, access up to $100K working capital. The SME Micro Loan is for daily operations and cash flow management applications.

    We can provide your company with a direct comparison for all SME Micro Loan rates and eligibility terms. Companies can look at the SME Working Capital Loan and the Temporary Bridging Loan Program to increase loans.

    Provide financing to expand and scale your company to the next level. Get a free loan evaluation and access now, quick and hassle-free, to all bank’s Micro Loan options.

    A small business loan can help you if you are a business owner who needs access to cash. However, it is essential to choose the correct loan type.

    Choose the incorrect loan, and you can wait months to get funds if you need them quickly or get the wrong type of funding.

    You can tailor small business credits to specific needs, such as expanding or starting a franchise. You can also get loans if there is a pile of unpaid invoices to access cash.

    Most small companies are lent by online lenders, banks, and credit unions. Interest rates, charges, loan ceilings, and terms vary according to the loan type.

    It is essential to understand how every loan works to select the best choice for your company. Below, CNBC Check out nine types of SME loans that can be of benefit to your business.

    Term loans

    Term credits are one of the most common types of small business credits and are a penny of cash you pay back over a fixed term. Typically, the monthly payments are fixed, and the interest is in addition to the principal balance. You can use a term loan for a range of needs, such as daily costs and equipment.

    FR Capital loans

    For business owners that need a low-cost government-backed loan, FR Capital lending is encouraging. However, FR Capital loans are known for a long request that can delay receipt of funding. The approval and loan can take up to three months. FR Capital loans can be a good choice if you don’t need money quickly and benefit from lower interest rates and fees.

    Business lines of credit

    Like a credit card, borrowers with business lines have a revolving credit limit, which you can usually access through a checking account. You can spend, pay, and then withdraw more money up to the maximum credit limit. These are great options if you’re unsure of the exact amount because only the amount you can withdraw is subject to interest charges. This is compared with a term loan, in which you pay the entire loan – whether you use part of it or everything. Many credit lines are unbundled, so you do not need collateral.

    Equipment loans

    If you want to finance large equipment purchases but have no capital, you must take the equipment loan into account. These loans are designed to support paying for costly machinery, cars, and devices, such as computers and furniture, that maintain value. The equipment you buy is most often used as collateral if you can’t refund the loan.

    Invoice factoring and invoice financing

    Business owners with difficulty receiving on-time payments can choose the factors or the financing of their invoices (aka accounts receivable financing). You can sell overdue invoices to a bank through invoice adjustment and receive a percentage of the invoice value in advance. You can use outstanding invoices as guarantees through the financing of the invoice to get an advance on the amount you are due. The main difference is that the company which purchases your invoices controls collection, while finance still requires you to collect payments from reimbursing the amount borrowed.

    Commercial real estate loans

    Commercial real estate loans can help you finance new and existing properties, such as offices, storage spaces, and retail spaces (e.g., commercial loans). These loans act like term loans and allow you to buy, expand or refinance an existing loan on a new commercial property.

    Microloans

    Microloans are small loans that can give you a minimum of S$50,000. Because the loan amounts are relatively small, these loans can be a good option for new companies or those with very little cash.

    Many microloans, such as FR Capital, are offered by nonprofits or the government. However, you might have to put up collateral for these lending activities (such as corporate equipment, real estate, or personal assets).

    Merchant cash advances

    Like traditional cash advances, commercial cash advances are costly. You need to borrow this kind of cash advance for your future sales. You’ll repay it with your day-to-day credit card sales or by wave transfer from your bank account in exchange for a lump amount of cash. While you can often get a cash deposit quickly, the high interest rates pose significant risks for this type of loan. Credit card sales are a guarantee instead of unpaid invoices, as opposed to invoice financing/factoring.

    Franchise loans

    You can become a franchisee to achieve your business ownership goal more quickly and efficiently than from the ground up, although you will still need money. Franchise loans can give you money to pay the initial allowance so that you can get up and running. While you are taking the loan from a lender, some franchisors can offer new franchisors financing.

    Bottom line

    It can be overwhelming to select a small business loan with so many options available. But you can restrict options if you evaluate your business needs. Then look at a few lenders for interest rates, fees, loan amounts, and terms. This can assist you in finding the best loan and making your company a success.

    False statements to receive an FR Capital loan can lead to severe criminal sanctions. A convicted person is faced with federal jail terms and steep fines for a federal loan fraud offense.

    Federal loan fraud happens when an individual or company deliberately makes a wrong material statement to obtain a loan to a federally insured financial institution or federal agency. A federal credit fraud conviction can impose severe penalties, including national prison terms and fines up to six digits.

    Many federal institutions and agencies manage to lend. This article will cover some federal crimes in which a loan guaranteed by the Small Business Administration is made false declarations (SBA).

    Other federal charges may be relevant depending on the behavior (such as racketeering, conspiracy, or money laundering). State criminal charges might also come into play. It is possible.

    (To check our fraud and financial crime content for information on mortgage fraud and related crimes)

    For acts involving loan fraud, several federal criminal laws apply. Dependent on the conduct and associations involved in the specific crime charged. Prosecutors can apply for criminal sanctions for fraudulent acts in connection with SBA and SBA-backed loan applications:

    • a federal agency false statements
    • SBA False Declarations
    • In the loan application, false statements,
    • bank fraud.

    The mail’s use or Internet to promote a crime may also lead to charges of wire fraud or mail.

    False Statements to a Federal Agency

     It’s a crime to make a false, substantial statement knowingly to deceive or mislead a federal or federal agency matter. Material statements, such as a loan application, are those that influence decision-making. The sentence imposes a five-year maximum prison penalty and a fine of S$350,000. (18 U.S.Code §§ 1001, 3571 (2020).)

    False Statements to the SBA

     Anyone who wisely makes the wrong declaration or overvalues securities or collateral to obtain the SBA loan or influence the SBA to obtain a loan shall commit a fine of up to S$7,000 for two years. (15 U.S.Code §§ 636e(1); 645(a) (2020).

    Loan Application Fraud

     It is also a crime by the federal government to deliberately file a falsifying statement in an attempt to influence loan application decisions with certain federally insured financial institutions (such as a local bank or credit union). The fraud in the loan application shall be punishable by up to thirty years imprisonment and fines of up to S$1,400,000. (18 U.S. Code § 1014 (2020).

    Bank Fraud

     Bank fraud includes an arrangement or ploy used to scrupulously defraud a bank by using pretenses, representations, or promises to obtain funds or funds controlled through the bank. This section covers a wide range and diversity of criminal activities, from forging bank checks to falsifying mortgage or credit applications information. A conviction is punishable with a 30-year term and fines of S$1,400,000. (18 U.S. Code § 1344 (2020).

    Wire or Mail Fraud

     A further charge may be levied for wire fraud or mail fraud if you can show an individual user:

    • Internet, email, telephone, or any other service (wire fraud),
    • the U.S. mail or an interstate delivery service (mail fraud)

    Involve another money or property in a plan to defraud. Like with the other fraud charges, any money has been obtained, and a crime has been committed.

    The consequence of a conviction is significant, while charges against cables and courier fraud tend to be federal charges. Penalties in federal jail for mail and wire fraud can reach $ 1,400,000 for 20 to 30 years. (18 U.S. Code §§ 1341, 1343 (2020).

    To obtain their loans as quickly as possible, business owners work with the latest Paycheck Protection loans round to complete their applications correctly and fast. If you apply for the PPP loan, you must complete the application for the best results accurately, but you are not totally losing if you have made an error.

    Errors occur. Perhaps you have misplaced the EIN or have not provided the amount of your loan. Maybe you ignored including some income and remembered it later so that you are actually eligible for more PPP funding. Regardless of the situation, you can handle it.

    First, if your application for a PPP loan is mistaken, reach your lender as quickly as possible. See if your application has yet been submitted to the SBA (you should receive a notification when they do). If you don’t, you can request the correction of mistakes to submit a new application.

    You might need to wait to see what happens when the SBA receives your application for approval already. They can still approve the loan, depending on the mistake made. Unfortunately, it doesn’t contain much information about whether or not to ask for your PPP application to be updated as soon as it reaches SBA. Still, options depend on whether or not you are approving or refusing your loan application.

    You can still get your loan if you made an error and your loan application was approved. (Read on, if you get too many or too little for your loan, to find out what to do.)

    If a bug has not approved your application, your bug(s) will be correct, and your application can be re-submitted.

    Apart from correcting your request, there is little to be done before it is sent to the SBA if you accidentally request too much or not too much until you receive a notice of your credit authorization.

    In general, if you have asked too much, during the application/approval process SBA and your lender will rectify your mistakes and offer only the maximum lending amount for which you have qualified based on the records that have been verified. You can either work on spending your funding under PPP rules (at least 60 percent on payroll and the rest on approved PPP charges) or refund the unused portion to your loan holder if you feel you have been approving a larger loan than you believe you can spend within your covered period. Document your loaner and the SBA carefully to ensure that they have proof of any overage returned.

    For paying off your loan early, there is no prepayment. You can also work with your creditor to accept only the portion of the loan you actually need and to deny acceptance of the rest, ensuring you receive only the amount you can properly spend to maintain full forgiveness of the loan.

    Again, there is quite a small chance that you will receive the wrong amount because you will only be approved based on your records for the maximum allowable amount of the PPP.

    However, there may be certain instances in which the SBA can agree to increase your PPP loan if you feel that you have asked too little of your PPP loan. See here for an in-depth list.

    If the amount of your approved loan was too low or too high because of the input error, you could file this form with the SBA to seek rectification.

    If you haven’t yet submitted your application, the best thing you can do is first get it right. Do whatever you need to do to prepare your application. Get all the numbers you need and the documentation you need to verify.

    It is also a critical step to work with the right lender. A borrower can help you connect to an eligible SBA 7(a) borrower to ensure no mistakes are made.

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    Before you decide how to finance your franchise, it is essential to weigh the advantages and disadvantages of various loan products; however, if you don’t fully understand who makes capital available to you and how it can be easier said than done—point-of-service: loans from SBA.

    Randy Jones, Head of Originations for Apple Pie Capital, says, “There’s a bit of a confusion about what the SBA loan is. “This is a bank loan guaranteed by the U.S. Small Business Management.

    SBA loans belong to a federal program which varies from 7(a) loans to 504 loans and other funding based on your capital requirement.” The SBA loan program is often the most applicable of the franchise owners’ loans 7(a). The SBA guarantees 75% of these loans to encourage lenders to distribute capital to people who otherwise could not get financing.

    “So in the end the government guarantees that a credit of S$ 400,000 or SD 300,000 will be paid out to the lender if the loan is bad,”

    Advantages of SBA loans

    SBA loans allow projection-based underwriting, meaning that prospective franchise owners can acquire the capital for initial enterprises or expand their store according to profitability estimates. Other advantages may be:

    • Generous duration for real-estate loans, like a 10-year term.
    • Interest rate caps, which include a maximum of 2.75 points above loans over S$50,000 for a period of at least seven years.
    • Financing for up to 80 to 90% of project costs.
    • Lower down payment requirements.

    “The use of SBA loans is good for borrowers,” “All project costs, including franchise, construction, equipment, soft opening costs, lease deposits and cash operating capital, are allowed to be utilized for proceeds. You add it all and say it’s S$500,000. It’s all. Many SBA lenders are allowed to reduce your payment by 10 per cent so you pay a down payment of S$50,000 plus you get back the business capital. This is a strategic step in preserving your own cash. You put less down and get money back. You put down. When you’re light on cash, it’s good.”

    Disadvantages of SBA loans

    Although SBA loans benefit borrowers, they also have certain disadvantages.

    “If a lender has personal assets to ensure that the loan is secured, the SBA Standard Operating Procedure is to be provided by the borrower with additional security,” states Randy. “The banking company must put a lien on that house if I have a home worth S$500,000 dollars and owe S$300,000 because its value is collateral. To secure the loan, you commit personal assets.”

    This can affect your personal as well as your professional goals. A link on your home will take you to your next residence if you decide to move to buy a new house, for example, beyond the risk of losing personal wealth. Furthermore, suppose you commit bonds or cash as collateral. In that case, your liquidity will have a negative influence, and it will become challenging to open your following franchise location to inhibit the growth of your business.

    The loan approval process can also slow down when you work with a lender that is not SBA preferred.

    “The preferred lenders may decide on SBA’s behalf; they are not directly required to submit to the SBA,” says Randy. “Standard process lenders are able to approve the transaction internally but must then submit the transaction to the SBA Bureau. You have a further approval stage, which slows down things.”

    Stay strategic

    The choice of various loan products is based on education. SBA lending might be the only option to access the financing you need on your franchise or be the most useful in some instances. However, it is best to avoid collateral requirements that can hinder future growth when qualified for other loan products that offer similar benefits, such as long-term benefits supporting positive cash flow or financing the majority of project costs.

    Work with your lender to find out if your current financial profile and long-term business plans make sense of an SBA loan. ApplePie Capital provides SBA loans and a full suite of franchise financing solutions.

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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.