SME Working Capital Loan in Singapore

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Government Aided Financing Scheme For SMEs

SME Working Capital Loan is a government-assisted funding loan under the Enterprise Financing Scheme. The improved scheme in the Solidarity Budget 2020 supports SMEs to access financing till March 2021.

Under the new Enhanced SME Working Capital Loan, access up to $1 million to finance cash flow needs. Enterprise Singapore associates with participating financial institutions with up to 90% risk-sharing.

There are 18 financial institutions participating in this system. Credit criteria and interest rate vary across the banks. We can give you a direct comparison of all banks SME Working Capital Loan rates & eligibility terms.

Ensure the funding you require under the SME Working Capital Loan to grow and scale your business.

Get a free loan assessment and compare all banks financing options now, fast and hassle-free.

SMEs FUNDING SMEs

We offer a variety of working capital loans in Singapore. Devised to assist our clients in generating additional liquidity to ease your cash flow, you can now concentrate on your business growth.
Our working capital loans involve factoring, term loans and purchase order financing. Our skilled Relationship Managers are in the best position to advise and customize a business financing solution that meets your business requirements. Enquire with us today!

Once an SME ourselves, we know the constraints of small businesses having cash flow issues. Having to pay for infinite operational costs like salaries and maintenance while coping with late fees from clients is not an easy task. At times, these late fees can be delayed up to 90 days. With strong cash flow, businesses struggle to make ends meet rather than focusing on improving their business.
With our factoring solutions, you can turn your account receivables into cash, generating extra liquidity for your company. By trading in outstanding invoices or receivables, businesses can receive up to 90% of the invoice amount within a day. Save the hassle while we assist you in collecting fees from your debtors and even protecting you from buyers’ default.
With steady cash flow, you can now focus on growing your business while we take care of the rest.

TERM LOAN

To promote the growth of your business and produce more revenue, the company has to invest in some avenues from time to time. Whether it’s an equipment upgrade, an inventory order, a new location, or even marketing campaigns, it needs a large sum of cash.

The term loan is a lump sum of capital that you will pay back in instalments at a fixed interest rate. As the name implies, the repayment period will be for a fixed term, usually 1 to 5 years long. This business term loan can assist finance something that helps create more profits for your business.

PURCHASE ORDER FINANCING

As a small business or a startup, it’s sometimes challenging to keep up with the number of orders from your customers. Lacking the capital to purchase raw materials or access inventory to fulfil the charges will turn customers away, decreasing your profits.

Purchase order financing provides working capital to growing businesses to pay suppliers for verified purchase orders. With this additional financing, companies no longer have to decline new orders due to limited cash reserves or cash flow challenges.

Steps (Process Flow)

Benefits

Loan tenure up to 10 years

Extensive experience in the automotive value chain

Receive up to 90% cash in advance

SME Working Capital Loan Features

Up to $1M financing

Raised from $300K to $1M till 31 March 2021

Up to 5 years repayment

Option to defer principal up to 1 year subject to assessment

Government risk sharing 90%

Raised from 50% risk sharing with banks

Enhanced SME Working Capital Loan Eligibility:

  • Minimum 30% ultimate ownership shareholdings owned by Singaporeans or Singapore PR(s)

  • The government is risking 90% shares with participating financial institutions. SME borrowers are still liable for 100% of the loan outstanding in the event of default. Banks will proceed first with their usual commercial recovery method.

  • Local company registered and operating physically in Singapore.

  • Annual sales of ≤ S$100m or employment size ≤ 200.

SME Loan Comparison Made Easy

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Enhanced SME Working Capital Loan Interest Rate

The interest rate for SME Working Capital Loan varies from the numerous participating banks and financial organisations and is dependent on their risk assessment.

Qualified companies can enquire with the various participating financial institutions on their respective SME Working Capital Loan interest rates.

Participating Financial Institutions

These are some of the participating financial business in the Enterprise Singapore SME Working Capital Loan.

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

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    About iBusiness

    iBusiness 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.

    Our Services

    At iBusiness, we believe that everyone should have an equal opportunity to financial access.

    That’s why we have committed ourselves to making affordable financial products and services that are accessible to all businesses, regardless of size and net worth. Through investments in digital technology and operational efficiency, we continually devise new methods to provide convenience to SMEs.

    At the same time, we never lose sight of our service excellence. We want to build a relationship with our clients that goes beyond finance.

    In order to be eligible for a loan, you must be

    • A Private Limited Company registered with ACRA
    • One of your directors must be a Singaporean / Permanent Resident or foreigner residing in Singapore.
    • Your business should also have an annual revenue of at least $100,000.
    • Preferably, your business has also been in operation for at least 10 months.

    Loan Information

    • Latest 6 months of Bank statements
    • Company Financial Statement for the past year
    • Latest Credit Bureau Singapore (CBS) Credit Report of Applicant(s)
    • Latest Moneylenders Credit Bureau (MLCB) report of Applicant(s)

    In addition, you may provide any upcoming contracts, aging reports, expected invoices, and other documents that you think may be applicable to the loan assessment.

    Each loan is subject to assessment. Our loan rates range from $5,000 to $300,000 per application.

    Depending on your company’s SME profile and credit analysis, interest rate can vary from 2% to 7% per month.

    We have a flexible repayment structure. Repayment can be made in weekly, bi-weekly, and monthly instalments over 2 to 12-month terms.

    Once you have submitted your documents, we will contact you to verify the application. During this process, additional documents may be requested to have a better understanding of your company’s creditworthiness.

    If your application meets the credit risk criteria, approval is typically completed within hours. Once all the required documents and information has been submitted properly, you can get your loan within 24 hours of the application.

    As a business owner, we understand the need for cashflow and hence our various loan products such as working capital loan, business line of credit, and bridging loan are meant to do just that!  We aim to provide business owners like you with liquidity to tide through that tight cash flow period.

    Obtaining Your Loan

    Upon the approval of your application, you should receive your loan within 24 hours.

    A personal guarantee is required for all loan applications.

    You may make full repayment prior to the end of the contract period. However, an early redemption fee may apply.

    During Application

    We have gone digital!
    All documents can now be submitted electronically to us. If your application meets the credit risk criteria, approval is typically completed within hours and you can get your loan within 24 hours of the application

    Other Information

    Every business is of a different financial standing and health.  We will perform a comprehensive credit assessment before providing you with a tailored loan package.

    There are many variables that contribute to a poor credit score. As long as you are not currently under any litigation or bankrupt, we are always happy to explore how we can assist.

    The basic criteria for a loan with us is that your business must:
    • have been in operations for at least 10 months at the point of application
    • be a private limited company or LLP
    • have an annual revenue of at least $100,000
    If you do not meet the above but have a great business idea, do share it with us too.
    We are excited to explore how we can work together.

    Your loan application can be declined if a lender doesn’t think you can afford to repay the loan, either because you don’t earn enough or the lender can’t verify your income with the information you provided…. Your loan application may be declined if it doesn’t look like you’ll be able to take on new debt.

    Be it for a new startup or a growing business, additional finance can help keep your business momentum up. You can avail a business loan from FRcapital for your short or long term financial needs to avoid any form of working capital fall short or any timely opportunities that come along your way.

    The business turnover ratio measures the proficiency of a business with which it effectively collects their receivables or the credit it has extended to its customers.
    To know how to calculate business turnover ratio, the total amount receivable from customers at the start of the accounting period must be added with the ending balance and divided by 2. The business turnover ratio is calculated by then dividing the total sales on credit by the average balance(excluding the cash receipts).

    To be eligible for business loan, the business must have incorporated for at least 3 years and must have filed Income tax for a minimum of 1 year. Also, a good business loan turnover ratio gives a positive reflection of business growth and profitability, making it a good profile for business loans.

    Credit Bureau Singapore. You can request a copy of your credit file online, at any of the SingPost
    branches, at the Credit Bureau office or at CrimsonLogic Service Bureaus. Prices reflected below are accurate and current: CBS Credit Report is chargeable at $6.42 (inclusive of GST).

    We take your privacy very seriously.

    Firstly, your contact details (company name, director’s name and number) will only be shared with
    relationship managers who are interested to finance your business loan request.