Small Business Loan Singapore: Comprehensive Guide to Financing Options for SMEs
Estimated Reading Time
7 minutes
Key Takeaways
- Many types of small business loans are available in Singapore.
- A range of requirements are covered by both government-backed schemes and private bank offerings.
- Eligibility requirements and application processes may vary greatly.
- Using online facilities to compare loan will help you to find an ideal loan.
- ‘It depends on the specific sector,’ sector-specific loans can act as lube for some enterprises
- Section-specific loans can be useful to stimulate growth specific to the sector (dopamine).
Table of Contents
- A Peek Into Small Business Loans in Singapore
- Discovering the Types of Small Business Loans
- Sizing up the Application Process
- Loan Application Rejection Explained
- Finding and Comparing Loan Options
- FAQs
A Peek Into Small Business Loans in Singapore
Small business loans in Singapore enable the supplement of operating costs, extra cash flow, business expansion, and project financing among other needs. Government-supported programs or private bank programs are available to ensure that businesses have the funds to meet short and medium-term cash flow needs, grow, or maintain their operations. This varied offering includes solutions for different business life stages and industry niches—a bespoke solution for every entrepreneur (source).
Discovering the Types of Small Business Loans
Government-Assisted Loans
- SME Working Capital Loan: A low-interest loan offering concessionary rates to help businesses finance their working capital, available up to S$500,000 for a maximum tenure of five years (source).
- Enterprise Financing Scheme (EFS): Includes multiple sub-schemes related to working capital, trade, projects, and green loans. Of note is the Sustainable Loan Grant Scheme which promotes sustainable business (source).
- EFS-Green: Financing for green solutions extended up to March 26, 2026 (source).
- Temporary Bridging Loan: Now replaced by resized schemes, this loan aimed to provide temporary cash flow support during crises (source).
Bank and Financial Institution Business Loans
- OCBC Business First Loan: Offers up to S$100,000 with an interest rate of 8%–11% p.a. for businesses registered for 6 months to 2 years (source).
- UOB BizMoney: Provides up to S$350,000 at around 10.88% p.a. for businesses with a minimum of 1 year in registration (source).
- CIMB BizGrow: Offers loans up to S$400,000 at up to 9.88% p.a. (source).
- DBS Business Loan: Services all Singapore registered businesses with options up to S$500,000 and interest as low as 7% p.a. (source).
- Standard Chartered Business Instalment Loan: Up to S$500,000 at 9% p.a. for businesses registered for more than three years with strong local shareholding (source).
- OCBC Business Term Loan: Provides up to S$700,000 at 7%–11% p.a. for businesses incorporated for at least two years (source).
Alternative and Fintech Loans
- GrabFinance SME Loans: Short-term loans available for cash-strapped SMEs needing a fast turnaround (source).
Personal Loans for Business Owners
In specific cases, business owners can use personal loans for business purposes with lender consent. These personal loans tend to have lower limits and fewer requirements, thus they might not be ideal for companies needing extensive capital or looking to build credit (source).
Sizing up the Application Process
Applying for a small business loan means fulfilling certain requirements and submitting necessary documents:
- General Requirements: Businesses need to be ACRA-registered, showing an operating history of 6 to 36 months, and submit financial documents like profit and loss statements. Ownership structures require majority ownership by Singaporeans or Permanent Residents (source).
- Government Loans: Require meeting specific eligibility criteria including maximum turnover or level of local share (source).
Loan Application Rejection Explained
A significant number of loan applications are not approved, primarily due to:
- Lack of operating history or performance record.
- Complicated or ambiguous ownership arrangements.
- Unacceptable credit of the business or its owners (source).
Finding and Comparing Loan Options
Start by accessing online resources such as GoBusiness Singapore and lending comparison sites like MoneySmart.sg to find the right loan products. Sector-specific loans are also available for industries like construction, trade, or green business developments under the EFS (source).
