Government Aided Financing Scheme For SMEs

SME Working Capital Loan is a government-assisted funding loan under the Enterprise Financing Scheme, It is a type of business loan. 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.
18 financial institutions are participating in this system. Credit criteria and interest rates vary across the banks. We can directly compare all bank’s 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 bank’s 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. Could you enquire with us today?
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 assisting 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 installments 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.
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 fulfill 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.
Enhanced SME Working Capital Loan Interest Rate
The interest rate for SME Working Capital Loan varies from the numerous participating banks and financial organizations 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.
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
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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.