Temporary Bridging Loan

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

Government Aided Financing Scheme For SMEs

The Temporary Bridging Loan Programme (TBLP) is a government-assisted financing scheme in the Solidarity Budget 2020. This scheme provides access to working capital for eligible SMEs.

Types Of Government Assisted Funding

Temporary Bridging Loans

The Temporary Bridging Loan provides support for Singaporean SMEs and companies through the Government of Singapore. This product is for companies that have been listed in Singapore and are operating with at least 30% Singaporean or Permanent Resident shareholding.

Working Capital Loans

The WCL is an increase over the Microloan of small businesses. The S$100,000 Micro Loan provides companies with access to more affordable capital within the S$100,000 limit. As the risk is distributed between the bank and the government, this provides lenders greater security to grant loans to growing companies in Singapore.

SME Micro Loans

Usually, the first loan for companies in the SME Micro Loan (“ML”). The S$100,000 Micro Loan allows companies to have access to cheaper capital over the S$100,000 ceiling. The risk is shared among the bank and the state, with 90% of the chance absorbed by the Singapore government. This enables small and medium-sized enterprises to receive support in bank loans.

Till 31 March 2021 From 1 April to 30 September 2021
Maximum Loan Quantum $5 Million $3 Million
Government Risk Sharing 90% risk sharing 70% risk sharing

17 financial institutions are participating in this program. Credit criteria & interest rates are different for all banks. Don’t have your applications rejected. Compare across all bank’s options and maximize approval chances.

We can provide your business with a direct comparison of all bank’s Temporary Bridging Loan rates and eligibility.

Get a free online loan assessment and compare all bank’s financing options instantly.

Temporary Bridging Loan Features

Maximum loan up to $5M

Across 19 participating financial institutions, with interest rate capped at 5% p.a.

Maximum five (5) years repayment

Option for principal repayment deferment up to one (1) year, subject to assessment  

Government risk-sharing 90%

Until 30th March of 2021, risk-sharing is 70% from 1st April – 30th September 2021.

Obtain Business Financing From Banks From Equity
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Higher Loan Amounts

Once we receive your documentation, we work immediately. We apply directly to our bankers for a faster response time and processing speed.

Greater Approval Chances

Suppose you have previously been unsuccessful on your own. Our Relationship Managers will be able to resubmit through us for higher approval. This is because we’re very familiar with the bank criteria and will be able to submit it precisely.

Quick And Responsive

Our relationship managers will respond to you within 24 hours & are available seven (7) days a week for an update on your application or any corporate requests from you.

Faster Application Times

We work immediately as soon as we receive your documentation. We submit the application directly to our bankers for a faster response time and processing speed.

SME Financing Institutions

SMEs can apply for the Temporary Bridging Loan with the participating financial institutions, subject to the respective bank’s credit assessment & approval.

What Can Business Loans Be Used For

Business Loans can be used for additional cash flow, for business expansion, or just for an extra boost of working capital.

Funds are disbursed immediately, and the deposit is deducted monthly into your corporate bank account.

There is no pre-payment penalty for the following loans: temporary bridges, micro-loans, working capital credit. That means that you can pay your loan at any time, and the interest is pro-rated.

For example, you will only pay 18-month interest if your original credit tenure is 48 months, but you pay off your credit in 18 months.

Click here to contact our Relationship Managers to obtain a pre-assessment of your loan eligibility.

Temporary Bridging Loan Eligibility:

Temporary Bridging Loan Interest

Each participating financial institution’s interest rate for the Temporary Bridging Loan Program (TBPL) changes depending on its risk assessment of your firm.

The effective rate of interest is limited at 5% p.a. Eligible SMEs can ask their respective TBPL interest rates with the various participating financial institutions. The interest rate could start from as low as 2.5% effective rate per annum (1.3% p.a. simple rate).

Criteria To Obtain Temporary Bridging Loans In Singapore

Temporary Bridging Loans, usually than not, the company owner is an expert in all things than his business. Nevertheless, SME’s are unfamiliarly navigating the different criteria and other requirements that the banks need when it comes to financing.

Equity Capital Solutions Can assist cut through the red tape quickly & easily. With our experienced loan specialists, the application is quick and straightforward, and we do all the work between you and the banks. Upon an inquiry, we usually respond within 3-4 hours to obtain financing quickly & easily.

Sell all SME Working Capital Loan Options in 3 Steps

Increased Loan Amount And Approval Success
With Equity’s Pre-Assessment Process.

Did you know there are many different criteria, and each bank has its own set of requirements? Often than not, a previously rejected application hurts your chances for future applications.

Here at Equity, we maximize your approval chances for the loan or even an increased loan amount.

FAQ’S

How long will it take to apply?

It takes approximately 10 – 12 working days for an application to be approved.

How long before I can receive the money?

Disbursement takes an additional 7 – 10 working days, depending on if you have an existing corporate account with the approving bank.

What is the amount of business financing I can achieve?

The financing loan amount depends on your bank balances, incoming and outgoing transactions, and other financial transactions. Our specialists can assist with your free assessment for your loan amount.

Which bank will I apply to?

Each bank has a different set of risk criteria, and each company different. Upon receipt of your documentation, we’ll be able to perform a free assessment to tell you which bank you’re suitable for,

What is the criteria for application?

Basic criteria for an application is an existing company incorporated in Singapore with at least 30% local or PR shareholding and a active corporate bank account.

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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How This Works

  • Make Free Enquiry.

  • An Equity financing expert will reach out to you for some simple details.
  • We will work together with you on the documentation.
  • You relax, and we do the heavy lifting for you.
  • We contact you when it’s approved for signing down the loan.

Free Loan Assessment

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

    There are 19 financial institutions involved. For all banks, the rate of interest and credit criteria vary.

    Accept your requests. Identify possible problems which could lead to a refusal.

    To maximize the opportunity for approval and secure the best terms, compare all banks’ options.

    Use our free loan valuation tool and instantly compare the best options for temporary bridging!

    The TBLP was first introduced in Budget 2020 for tourist enterprises, providing businesses with access to working capital. These companies could borrow up to S$1 million with an annual interest rate of 5%.

    The TBLP was subsequently extended from 1 April 2020 to 31 March 2021 for all industries. Businesses may borrow up to S$5 million, with an interest rate of 5% annually.

    They announced an extension of 1 April 2021 to 30 September 2021 in October 2020 to extend TBLP applications. For applications made during this period, they will reduce the maximum loan amount to S$3 million.

    Applying for the TBLP companies in Singapore, including central banks, can approach the financial institutions concerned. For the loan, no collateral is necessary.

    Do you need more options for short-term financing to help your company over this period? Find out more about the available options here.

    The majority of bridging lenders, particularly those without regulation, are more flexible than the creditors of mortgages. Still, the strength of the exit strategy is probable when your application is successful. The tighter your plans are, the higher your chances of getting a loan.

    As you have not yet sold your home, you may make two mortgage payment payments for at least one month or two or perhaps longer. It’s not easy to qualify. Bridge loans can have strict credit and debt-to-income conditions for those who apply for this type of debt burden.

    A bridge loan isn’t always the same as a different kind of loan. Yes, a high credit score, tax returns, and an acceptable debt/income ratio are necessary for some lenders. In this situation, not all lenders require this information. If you qualify for a home loan, some lenders will assume you qualify for a bridge loan.

    The lender for the bridge loan will decide to offer you a loan because you can receive a bridge loan financially.

    Bridge lenders will also determine whether you are entitled to a second mortgage. You probably won’t qualify if they don’t believe you can pay a bridge loan and a second mortgage.

    Usually, the lender takes over the mortgage on your existing property and finances the purchase of the new property when you take out the loan. The total amount borrowed is called the maximum debt and includes your loan balance, the new home purchase cost, and any buying costs such as stamping duty, legal fees, and loan fees.

    The minimum reimbursement for a bridging loan is generally calculated based on an interest-only basis, and this interest can, in many cases, be capitalized until the existing home has been sold, i.e., added to the peak debt.

    Once you sell your first property, the net proceeds of sales are used to reduce the peak indebtedness (sales price minus all sales costs, such as sales agent fees). The remaining debt is then the final debt, which will be repaid from that point on as a standard mortgage product.

    Otherwise known as interim financing, gap finance, or swing loans, bridge loans bridge the gap in need but are not available. These loans may be tailored for many different situations, both for companies and individuals using bridge loans and lenders.

    Bridge loans can help homemakers buy a new home while waiting to sell their existing home. For a down payment when purchasing a new home, borrowers use their equity in their present home. This happens as you wait until your current home is sold. This gives the householder extra time and thus peace of mind while waiting.

    The credit rates are usually higher than other credit facilities, including a home equity credit line (HELOC). And people who haven’t paid off hypothecs have to pay two things—one for the bridge and the hypothecary until the old house is sold.

    To calculate the overall costs of a bridging loan, there are several separate elements in addition to the interest charges. These include arrangement fees, assessment fees, exit fees, and fees for the applicant.

    Arrangement/broker fees

    Bridging costs generally include arrangement fees and represent a percentage of the loan types. Some 2% is standard, but some lenders can decrease to 1% by a considerable amount, and others can altogether waive this fee. Some providers also charge administration charges if you choose to take the loan out. Note: brokers who charge high initial fees not reimbursable should be avoided, as brokers must be paid only on a successful basis. The consultants we work with only pay if they secure an agreement and refund upstream charges if this is not the case.

    Valuation fees

    To create a bridging loan, you must carry out a security assessment on the property or properties provided by the borrower. The inspection is payable to the lender, and the costs depend on the value, location, and type of assessment needed.

    Sometimes a desktop appraisal – i.e., a remote assessment through the Internet – will suffice. This will add less to your total cost of bridging finances than an on-site appraisal (drive-by appraisal carried out outside the property).

    Take note: You can pay additional valuation fees if you have more than one object/asset as security because a separate valuation for each one is needed.

    Exit fees

    Apart from that, exit fees are possible when calculating the costs of a bridging loan. Some of the lenders (but not all) charge a restitution fee to delete a security property fee. Approximately 1% is standard and is added to the loan when it is paid off.

    Solicitor fees

    In calculating the cost of a bridging loan, the reimbursement fee and any fees for applicants fall under the ‘legal cost’ banner. The lender will make legal due diligence by using an advisor and expect the bill to be paid. This will not only be your legal costs but can vary across the board in the amount you are liable for.

    If you are looking for cheap bridging loans with the best rates on the market, contact the entire market consultants we work with will link you to a suitable lender.

    Whether regulated or unregulated, the costs of bridging the loans are generally the same.

    You shall guarantee regulated bridge loans against property occupied by the applicant. The financial behavior, which means the borrower is protected against poor advice and misspell by lenders or brokers, is governed by the finance authorities.

    In the meantime, non-controlled bridging credits are being used to buy lending or investment property. They are not regulated because business borrowers need more flexibility and agreements to meet their 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.