Business Loan
Criteria
Business incorporated in Singapore (including LLP, Sole proprietorship)
Business ownership with at least 30% of the company owned by Singaporeans / PR
Satisfactory credit rating of guarantors &/or shareholders
At least 3 months of operating revenue
A private business loan is provided by an alternative funding source instead of a traditional brick-and-mortar bank. Here are several different types of private business financing your business can use:
a) Business Term Loan ("BTL"):
Loan Amount: From $20,000/- to $150,000/-
- Rates: From 2.88% per month
- Tenure: Maximum 6 months
- Approval & Funding Time: Within 5 working days
We will provide and disburse BTL in one lump sum and there is typically no restriction to the loan usage, which can then be used for various business needs, such as inventory purchase, payroll, marketing campaigns etc. Additional fees, like facility fee and early prepayment fees, may apply during / after loan disbursement.
b) Long Term Business Term Loan / Property-Backed Business Term Loan ('PBTL"):
- Loan Amount: From $100,000/- to $1,500,000/-
- Rates: From 1.88% per month
- Tenure: Up to 24 months
- Approval & Funding Time: With 1 week from acceptance of our loan offer
Best suited for companies which are looking for HIGHER loan quantum, LOWER interest rate, LONGER loan tenure (of up to 24-month repayment term) and FASTER loan approval, we might require the company &/or its company directors to pledge their properties (Private residential, commercial &/or industrial) as collaterals for the loan.
Common Requirements
Depending on the lender and loan type, the company directors might be required to provide personal guarantor &/or to put up some form of collateral. Beyond that, here are some of the standard documents required for our credit assessment:
- A brief write-up of existing business model and future plans, if any.
- Audited financial statements for past 2 years
- Management accounts
- Bank statements for past 6 months
- Declaration of Company Borrowings (amount, instalment and loan balance)
- Latest Debtors’ Ageing Report
- Guarantor’s Credit Bureau Report
- Guarantor’s Income Tax Returns for past 2 years
- CPF Property Withdrawal Statement (for PBBTL only)
Pros and Cons of Private Business Loans
A private business loan can give business owners some financial breathing room. They can be used for many kinds of expenses and can prevent folks from using their personal savings to cover business expenses. But, like anything else, private business loans have their advantages and drawbacks.
Pros
- Private business loans are generally easier to obtain when compared to traditional lending options.
- Higher loan amount, lower interest rates, longer loan tenure with greater ease of approval are highly possible for PBTL.
- Funding is relatively quick (can be as fast as 3 working days from loan acceptance).
- The company may still qualify for such loans with less-than-ideal corporate financial standing &/or credit worthiness of the personal guarantors.
Cons
- Interest rate tends to be higher than banks.
- Short loan tenure – typically not more than 24 months (for UBTL).
- Company financial standings, current leveraging positions and credit worthiness of the guarantors might greatly affect the application.
- Company directors are likely required to provide a personal guarantee.
- Revenue requirements could create a barrier for some borrowers.