Financial Assistance and Loan
Types of Loans
- Unsecured Business Term Loan
- Trade Financing Line
- Factoring / Receivables Invoice financial
- Overdraft
- Equipment/Machinery Loan
- Commercial/Industrial Property Loan
- Alternative Financing/P2P Crowdfunding
Government Supported Financing Scheme
As an ever growing nation, Singapore has set many schemes in place to provide financial assistance to new startups and growing businesses.
Enterprise Singapore, a government entity, has initiated SME Loan schemes with participating financial institutions to help small companies get funding to better manage daily operations and cash flow.
The applicant company must be a Singapore registered company with at least 30% local shareholder, depending on the loan scheme, the group annual sales must not exceed the cap or group employment size must not exceed the limit.
Enterprise Singapore shares the risk of loan default with the participating financial institution. These loans generally have lower interests.'
We recommend SMEs to consider using these schemes to get the funding it requires for growth and daily operations if the company is eligible:
Small companies that are just starting out can apply for the SME Micro Loan that offers funding of up to S$100,000 to help you better manage daily operations and cashflow.
To make the loan more accessible to new companies set up in three years or less, Enterprise Singapore shares the risk of loan defaults with Participating Financial Institutions in the event of company insolvency.
- Daily operations
- Automating and upgrading factory and equipment
- Up to S$100,000
- Up to 4 years
- Subject to Participating Financial Institutions’ assessments of risks involved
Companies should meet the following criteria:
- Registered and operating in Singapore
- At least 30% local shareholding
- Annual sales of up to S$1 million or have up to 10 employees
Get greater access to unsecured working capital loans of up to S$300,000 through the SME Working Capital Loan. Launched in June 2016, the loan acts as an additional financing option by helping eligible companies cope with larger working capital and cash flow needs.
Enterprise Singapore partners Participating Financial Institutions and co-shares 50% of loan default risks in the event of company insolvency.
- Working Capital (e.g. daily operations)
- Up to S$300,000
- Up to 5 years
- Subject to Participating Financial Institutions’ assessments of risks involved
Companies should meet the following criteria:
- Registered and operating in Singapore
- At least 30% local shareholding
- Group annual sales of up to S$100 million or group employment size of not more than 200 employees1
1Annual sales turnover and employment size will be computed on a group basis (i.e. all levels for corporate shareholders holding > 50% of total shareholding of the applicant company and any subsequent corporate parents, and subsidiaries all levels down)
Fast-growing and innovative companies can expand their operations with venture debt financing of up to S$5 million.
Introduced in October 2015, the Venture Debt Programme (VDP) serves as an additional financing option for SMEs where venture debt providers may combine loans with rights to purchase equity.
To facilitate continued access to alternative financing, the VDP will be extended for another three years from 1 April 2018 to 31 March 2021.
Enterprise Singapore shares 50% of the risk of loan defaults with Participating Financial Institutions (PFIs) in the event of company insolvency. Interest rates, repayment structures, collateral and warrant structures will be determined by the PFIs.
- Working Capital
- Asset Financing
- Project Financing
- Mergers & Acquisitions
- Up to S$5 million
- Warrants will be required
Companies should meet the following criteria:
- Registered and operating in Singapore
- At least 30% local shareholding
- Group annual sales of up to S$100 million or group employment size of up to 200 employees.1
1Annual sales turnover and employment size will be computed on a group basis (i.e. all levels for corporate shareholders holding > 50% of total shareholding of the applicant company and any subsequent corporate parents, and subsidiaries all levels down)
Small and medium enterprises (SMEs) can apply loans of up to S$15 million through the Local Enterprise Finance Scheme (LEFS) to purchase equipment, machines or selected factory properties.
Enterprise Singapore shares the risk of loan defaults with Participating Financial Institutions in the event of company insolvency.
- Automating and upgrading factory and equipment
- Purchasing JTC Corporation or Housing & Development Board factory and business premises
- Up to S$15 million
- Up to 8 years for Equipment Loans
- Up to 10 years for Factory Loans
- Subject to Participating Financial Institutions’ assessments of risks involved
Eligibility
SMEs should meet the following criteria:
- Registered and operating in Singapore
- At least 30% local shareholding
- Group annual sales of up to S$100m or group employment size of not more than 2001
1Annual sales turnover and employment size will be computed on a group basis (i.e. all levels for corporate shareholders holding > 50% of total shareholding of the applicant company and any subsequent corporate parents, and subsidiaries all levels down)
There is a wide variety of financial loans and schemes offered by various banks and financial institutions. Most of these loans differ in financing criteria and requirement,
Depending on your requirements, we will appoint our affiliated banker best-suited to assist you for the loan application.
