Business Loans

Businesses commonly consider:

1. Working capital/term loans (unsecured)

2. Government-assisted SME loans (e.g. EFS-WCL, if eligible)

3. Invoice financing

4. Equipment/machinery financing (secured)

5. Trade finance

6. Commercial property loans

EFS-WCL is an Enterprise Singapore scheme that supports SMEs financing operational cashflow needs. Key published criteria include:

• Entity registered and operating in Singapore

• At least 30% local equity held directly/indirectly by Singapore citizens/PRs

• Group annual sales turnover not exceeding $500m

• For “SME Working Capital”, SME defined as group revenue up to $100m or maximum group employment size of 200

Loan details published by EnterpriseSG include maximum loan quantum $500,000 per borrower and maximum repayment period 5 years (terms apply; final approval is by participating financial institutions).

For some government-assisted scheme assessments, borrower group definitions can include the borrower, corporate shareholders holding more than 50%, and relevant subsidiaries in the ownership chain. This is why banks and financial institutions may ask for group structure and consolidated figures.

Requirements vary, but common documents include:

• ACRA BizFile/company profile

• Directors/guarantors IDs (and shareholding/structure where relevant)

• Latest 3–6 months business bank statements

• Latest financial statements (if available)

• Tax filings/Notices of Assessment (NOAs), where applicable

• Existing debts schedule (outstanding facilities + monthly obligations)

• Use-of-funds statement (1–2 paragraphs)

It depends on revenue, profitability, recent bank statements, existing debts, and guarantor strength. For EFS-WCL specifically, EnterpriseSG publishes a maximum loan quantum of $500,000 per borrower (subject to scheme and bank assessment).

Focus on:

• Interest pricing (e.g. EIR/APR where applicable)

• Processing/admin fees

• Late charges/default interest

• Early repayment terms

Best practice: compare total payable amount across the same repayment tenure, then read the terms and conditions before acceptance.

With complete documents, expect a few days in general; some digital-first banks and financial institutions can be faster when they handle straightforward cases.

When the financing supports cash-generating investments (such as inventory, working capital gaps, equipment investment, further expansion etc.) and monthly repayments remain sustainable even during slower months.

Yes, startups can apply, but the range of available options may be more limited and interest rates slightly higher, since banks assess risk based on trading history and cash flow.

Under the EFS, “young enterprises” – defined as businesses less than 5 years old, with at least one employee and over 50% individual ownership – may qualify for a higher risk-share of up to 70%.

However, approval still depends on the lender’s credit assessment and documentation review.

Tip: Having clear financial projections and up-to-date bank statements can help strengthen a startup’s loan application.

For company-use funds, business financing keeps liabilities ring-fenced and builds entity banking history. Personal loans can be faster but may blur personal vs. business obligations.