As one of APAC’s financial hub, there are over 100 commercial banks and 40 merchant banks based in Singapore, each providing a wide variety of loans to aid businesses in their quest to achieve healthy liquidity.
With that many options available, searching for the right one can be extremely time-consuming, having to shortlist and follow through with tedious application procedures.
At Reliance Advisory, our consultants will partner you to help identify and analyse your business needs while making financial recommendations on how you can access funds in the quickest time possible.
MAIN TYPES OF BUSINESS LOANS FOR SME(s)
Government Assisted Schemes
Generally favoured by participating financial institutions
PRIVATE BUSINESS LOANS
Acquiring greater financing from conventional financial institutions
Unsecured Term Loans
A very common and flexible form of working capital loan that provides your business with a quick access to funds. Unsecured business loans generally do not require physical collateral but are assessed through financial health of the business, such as creditworthiness, revenue and liquidity.
Businesses seeking greater working capital for short term & long-term needs. Good financial performance will be a plus as it determines loan amount, of which is usually capped at SGD$1,000,000 for each financial institution.
*Subject to current regulatory framework
Loan tenor of 1-5 years with varying interest rates. Generally follows a “Principal + Interest“ structure.
Government Assisted Schemes
Government supported financial schemes that are usually dispersed as term loans. Given the backing of the government, these loans are generally favored by participating financial institutions as they are exposed to reduced risk.
All business entities that are registered and have a physical presence in Singapore with at least 30% local shareholdings.
Maximum Borrower Group** revenue ceiling of SGD$500 million
Group annual sales should not exceed SGD$100 million
*Subject to current regulatory framework
**Comprises borrower and corporate shareholders that hold more than 50% of total shareholding of the company, and any subsequent corporate parents (all levels up), and subsidiaries all levels down.
Loan tenors of up to 5 years, with varying interest structures set by the financial institution.
There is no repayment penalty.
Private Business Loans
Financing provided by non-banking institutions that are usually dispersed as term loans, line of credit, or sales of future business receivables. Unlike angel investors or venture capitalists, these private lenders do not require equity in return for financing your business. Proper usage of private loans can be a stepping stone for acquiring greater financing from conventional financial institutions.
Businesses that are unable to obtain required financing through traditional or conventional financial institutions.
*Subject to private investors terms and conditions
Loan tenors usually between 1-5 years with varying interest rates.
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