Best SME Loans for Small Businesses 2020

Choosing the right business loan in Singapore for your business is crucial for your continual success.

Loan Advisor Mission – “We’ve chosen the best lenders in town, compared their interest rates, terms and conditions, then came up with the best loan deal for your business.”

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Our Top Pick for The Best SME Business Loans

Best Bank: Citibank Singapore

citibank

What We Like

As one of the best premier banks in town, Citibank Singapore offers some of the best term loans with the lowest rates and in larger amounts to businesses around Singapore. The banking giant offers a wide variety of business loans to businesses, such as CitiBusiness Unsecured Business Loan for your business needs. 

  • Fantastic…
    • Large choices of business loans available
    • Lengthy repayment term loans of up to 4 years
    • Lower than average interest rates
    • Larger unsecured loan amounts of up to $350K
    • Easy to apply
  • Mindful tips…
    • Low approval rates
    • Business needs to have excellent credit scores
    • Not for startups or new businesses below a certain period of operations
Financing Amount: Min $50k
Interest Rate: 6.25% – 15%
Requirements:
– $750k Annual Turnover
– Recent 6 months Bank Statement

Best Financial Institutions

A1 Credit - Good for quick financing for business opportunities

A1 Credit Logo

What We Like

With some of the best customer service provided in the industry, it’s no wonder the company has steller online reviews everywhere online. With their ability to personalize your business loan needs quickly and efficiently, your business will be able to grab any opportunity that comes its way without undue delay.

A1 Credit provides a variety of business loan types, ranging from simple short-term business loans to the more complex working capital loans for business owners to help them grow their business.

  • Fantastic…
    • Quick processing times
    • Good for business financing
    • Large variety of business loans
  • Mindful tips…
    • Loan quantum of only up to 200K
    • Only available to businesses that are in operation for at least 1 year
Financing Amount: $10k to $200k
Interest Rate: 5% – 10% per month
Requirements:
– $60k annual turnover
– business must be active and profitable for the recent 1 year period

Documents Required

  • Information report (Business Profile) from the Accounting & Corporate Regulatory Authority (ACRA, the date is not more than 2 months from the application date)
  • Income tax assessment notice (Both individual & company)
  • Recent Financial statement
  • Recent & incoming Invoices or Business Contracts
  • Latest Utility bills under the company name
  • Latest 6 months bank statements
  • Directors / Partners NRIC
  • List of Assets owned by the Company (If any)
  • Office / Shop Tenancy Agreement (If any)

Bugis Credit - Good for short term loan financing

Bugis Credit Logo

What We Like

As a company that values professionalism and its customers, Bugis Credit’s short-term business financing is top-notch. It is a great option for any SMEs that are seeking immediate financing to weather through slightly turbulent times in their businesses and Bugis Credit’s quick disbursement of funds makes it easy for a business to go about their dealings quickly.

  • Fantastic…
    • Great for short-term business financing
    • Very quick loan disbursement service
    • Loan officers understand SME business financing options well
  • Mindful tips…
    • Not suitable for larger businesses that need large sums
    • Not suitable for long term loans
Financing Amount: $10k to $200k
Interest Rate: 5% – 10% per month
Requirements:
– $60k annual turnover
– business must be active and profitable for the recent 1 year period

Documents required:

  • Information report (Business Profile) from the Accounting & Corporate Regulatory Authority (ACRA, the date is not more than 2 months from the application date)
  • Income tax assessment notice (Both individual & company)
  • Recent Financial statement
  • Recent & incoming Invoices or Business Contracts
  • Latest Utility bills under the company name
  • Latest 6 months bank statements
  • Directors / Partners NRIC
  • List of Assets owned by the Company (If any)
  • Office / Shop Tenancy Agreement (If any)

Raffles Credit - Good for businesses that have significant amounts of invoices & limited cash flow

Raffles Credit

What We Like

Two things we like about Raffles Credit. Their good business loan offerings to an SME business and their low rates. Both of these are crucial for a small business seeking to increase their cash flow in a pinch. With their ability to give out flexible rates, any small business owner around Singapore can consider the company for their financial needs.

However, do note that they can only give out loans to a small business that have been in operation for a year or more.

  • Fantastic…
    • Excellent choice for SME invoice financing
    • Good for small business owners
    • Reasonable loan rates
  • Mindful tips…
    • Only for businesses with an annual turnover of $60,000 a year
    • Only for businesses in operation for over a year

Financing Amount: $10k to $200k
Interest Rate: 5% – 10% per month
Requirements:
Business requirements:
– $60k annual turnover
– business must be active and profitable for the recent 1 year period

Documents required:

  • Information report (Business Profile) from the Accounting & Corporate Regulatory Authority (ACRA, the date is not more than 2 months from the application date)
  • Income tax assessment notice (Both individual & company)
  • Recent Financial statement
  • Recent & incoming Invoices or Business Contracts
  • Latest Utility bills under the company name
  • Latest 6 months bank statements
  • Directors / Partners NRIC
  • List of Assets owned by the Company (If any)
  • Office / Shop Tenancy Agreement (If any)

GM Creditz - Good for its wide variety of business loans

GM Creditz

What We Like

GM Creditz, known online as one of the best local licensed moneylenders online, is an excellent choice for businesses that require more than just one single business loan type. Their best business loan offers can range up to $200K with longer payback tenures, making it easy for any businesses to survive the coming turbulent months.

  • Fantastic…
    • Knowledgeable loan officers who can advise on business loans properly
    • Wide variety of business loans
    • Flexible terms of repayment
  • Mindful tips…
    • Only for businesses that have been in operation for 1 year
    • Loan quantum does not exceed $200K
Financing Amount: $10k to $200k
Interest Rate: 5% – 10% per month
Requirements:
– $60k annual turnover
– business must be active and profitable for the recent 1 year period

Documents required:

  • Information report (Business Profile) from the Accounting & Corporate Regulatory Authority (ACRA, the date is not more than 2 months from the application date)
  • Income tax assessment notice (Both individual & company)
  • Recent Financial statement
  • Recent & incoming Invoices or Business Contracts
  • Latest Utility bills under the company name
  • Latest 6 months bank statements
  • Directors / Partners NRIC
  • List of Assets owned by the Company (If any)
  • Office / Shop Tenancy Agreement (If any)

Fortune Credit - Good for SME microloans & businesses that need quick funding

fortune credit logo

What We Like

A business that needs quick funds to manage the day to day operations should seek out Fortune Credit for its easy application process, high approval rates, and fast disbursement of cash. The company’s loans start off at $10,000, which makes it easy for any business to pay off their debts and focus on the business of running the company. If you are looking for larger loan amounts, Fortune Credit would be able to assist you with that as well.

  • Fantastic…
    • Good for a small business that needs a quick cash infusion
    • Great for SME microloans
    • Great turnaround time
  • Mindful tips…
    • Not suitable for loans above $200k
    • Not suitable for new companies below a year

Financing Amount: $10k to $200k
Interest Rate: 5% – 10% per month
Requirements:
– $60k annual turnover
– business must be active and profitable for the recent 1 year period

Documents required:

  • Information report (Business Profile) from the Accounting & Corporate Regulatory Authority (ACRA, the date is not more than 2 months from the application date)
  • Income tax assessment notice (Both individual & company)
  • Recent Financial statement
  • Recent & incoming Invoices or Business Contracts
  • Latest Utility bills under the company name
  • Latest 6 months bank statements
  • Directors / Partners NRIC
  • List of Assets owned by the Company (If any)
  • Office / Shop Tenancy Agreement (If any)

365 Credit - Great for secured loans like vehicle financing

365 Credit Solutions

What We Like

365 Credit has proven itself to be a good choice for SME business owners who need the extra working cashflow in order to keep their business operational. Businesses that require more working capital than usual are encouraged to apply for one of their business loans in order to keep things running smoothly and efficiently.

  • Fantastic…
    • Good for businesses that rely heavily on their equipment
    • Excellent secured business loans
    • Fair contract terms and conditions for businesses
  • Mindful tips…
    • Not suitable for loans above $200k
    • Not suitable for new companies below a year
Financing Amount: $10k to $200k
Interest Rate: 5% – 10% per month
Requirements:
– $60k annual turnover
– business must be active and profitable for the recent 1 year period

Documents required:

  • Information report (Business Profile) from the Accounting & Corporate Regulatory Authority (ACRA, the date is not more than 2 months from the application date)
  • Income tax assessment notice (Both individual & company)
  • Recent Financial statement
  • Recent & incoming Invoices or Business Contracts
  • Latest Utility bills under the company name
  • Latest 6 months bank statements
  • Directors / Partners NRIC
  • List of Assets owned by the Company (If any)
  • Office / Shop Tenancy Agreement (If any)

Need Help With Applying?

Get FREE quotes from our Loan Advisor Consultant when you apply for a Business Loan with us!

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Business Loan FAQ

A business loan Singapore is a type of financing that is used to fund your business’s expenses. Typically it’s used for the business’s expansion – purchasing inventory, new business locations, or expanding your staff headcount.

Business loans in Singapore are typically available through banks, credit unions, and even moneylenders, though there are certain stipulations attached before a business can take out a loan with them. Some of the most common factors include the length of time the business has been in operation, its yearly revenue, your credit score, the type of SME loan required, and more.

The most common type of business loans in Singapore are secured loans, which require collateral, and unsecured loans, which do not require collateral.

There are also other types of SME loans available which are listed below:

Unsecured Business Term Loans – these are loans that are usually unsecured and used to cover a one-time expense. The business will receive a lump sum loan amount and then repay back the loan, interest, and fees over a period of time. 

Lines of Credit – this loan is similar to a credit card, where you receive access to a line of credit that your business can draw from. Depending on the lender and terms of the agreement, you will have to repay the minimum loan amount monthly or through installments.

Equipment & Vehicle Financing – while working akin to a term loan, the loan is secured by the vehicle or equipment you are buying, with lower interest rates and better terms. However, should you default on the loan, the risk is that the item will be repossessed by the lender.

Short-term Business Loans – these loans for SMEs are ideal for any that need funds quickly. They are also more expensive, with tighter and more stringent terms associated.

SME Micro Loan – Small amounts of capital that smaller and newer businesses would go for as the loan amount isn’t very large.

Receivables Financing / Invoice Financing – The financing allows you to receive a percentage of your invoice amount paid earlier. Once the sale has been completed, the financier will give you the remaining percentage from the invoice, after deducting the fees.

SME Working Capital Loan – Is a loan taken out to finance a business’s daily operations. They are not used to purchase equipment or any other long term plans, but to keep the daily operations running smoothly.

Trade Financing – These are short term loans used for import and export transactions, regardless of how the transportation works, be it road, sea or air. 

Property Loan – A loan for a business to acquire more property relating to the business in order for the business to expand its operations or franchise.

Depending on the lender itself, the average approval time could be anywhere from a day to a week. Typically, licensed moneylenders will approve your loan application within a day, should you present all relevant documentation and necessary identification correctly.

Banks, like Citibank, would take a longer period of time to approve your loan application, with some taking more than a week to approve. 

Depending on the lender or bank, your credit score could mean the difference between an approved loan or a rejected loan. Banks typically require great credit scores, with most wanting to see your credit repayment trends over the last 12 months, and records of your credit history.

On the other hand, licensed moneylenders do not take into account your previous credit scores, only the ability to repay the loan itself. This would be good for any business owner with less than stellar credit scores who need a loan in order to grow their business further.

According to the Ministry of Law Moneylenders’ Act, the maximum rate of interest a licensed money lender can charge is 4% per month.

Citibank however, will charge 6.25% – 15% per annum depending on the loan amount sought after.

The biggest difference between a licensed moneylender and a bank is the amount of loan available to the borrower. While a bank loan oftentimes offers lower business loan rates due to their access to larger sources of funds, the process of application and difficulty in approval means that smaller lenders should also be considered.

Moneylenders might not have access to a large amount of funds, but the ease of their loan application and fewer restrictions would make it easier for small businesses to obtain the funds they need for their businesses.

Singapore business owners do not have to worry about that. All you need to do is to apply to a licensed lender and bring along the following documents.

  • You and all other directors and partner’s National Registration Identity Cards
  • All recent information reports from the Accounting & Corporate Regulatory Authority (ACRA)
  • Your personal and business’s most recent income tax assessment notice
  • Your company’s most recent financial statement
  • All recent invoices or business contracts
  • Recent utility bills under the company name
  • Your company’s recent 6-month bank statements
  • The list of assets owned by the company, directors & partners

Your company’s office/shop tenancy agreement

  • Expanding Your Operations

All businesses seek to expand, be it opening new franchises or expanding their operations. A business is unlikely to remain small for long, especially when it could be offering its products or services to a wider group of people out there.

  • Purchasing Additional Inventory

If your business involves retail or seasonal items, you need to ensure you already have supplies and inventory ready before the next season comes in or before stocks run out. SME business loans would help you purchase the required inventory needed to get things ready to ensure you have enough to meet the rising demand of your customers.

  • Boosting Your Business Capital

A business capital or working capital is the money you use to ensure your operations continue daily, which presents the need to have a large overhead and working capital to run your daily operations.

  • Improving Your Business Credit

 A short-term SME loan with a fixed-term loan can help you develop a good credit history for your business, allowing you to take out larger loans in the future when you need to expand your business.

  • Enable New Business Opportunities

When opportunity knocks, you need to ensure that you have enough working capital to meet those opportunities, be it an expansion, new business partnerships, or even further investments in the company. Such opportunities need money, something that an SME loan provides.

  • Recruiting & Refining Talent For Your Business

If you want to stay in business and keep competitive, you and your employees need to keep up with developing trends and innovation. A business that doesn’t innovate will stagnate and fail.