Business Financing · Singapore
Getting a business loan in Singapore is more straightforward than most SME owners think — if you know what banks look for, which product fits your situation, and how to present your application correctly. This guide covers every major business financing option available in Singapore, eligibility requirements, and the fastest path to approval.
According to the Singapore Business Federation National Business Survey 2025, around 27% of businesses sought financing in the past 12 months, primarily to support expansion (37%), hiring and workforce development (22%), and the launch of new products or services (20%). Here are the main products available:
Government-backed via Enterprise Singapore's EFS scheme. For operational cash flow — payroll, inventory, rent, utilities. Up to 5-year tenure. No collateral required. Personal guarantee from directors needed.
Unsecured loan from banks for business expansion, hiring, equipment, or general use. DBS offers up to $500,000 with interest from 7%, up to 5 years. Larger amounts available for established businesses.
Up to $10 million for import, export, and local trade transactions — permanently enhanced from 2025. Trade factoring converts outstanding invoices into immediate cash within 24–48 hours.
Borrow against your private property at mortgage rates — far cheaper than unsecured business loans. Ideal for business owners who own private property and need larger amounts at lower rates.
Regardless of which product you apply for, Singapore banks assess business loans using a consistent set of criteria:
| Criterion | Typical Requirement | Notes |
|---|---|---|
| Business registration | Singapore-registered (ACRA UEN) | Pte Ltd, sole proprietor, LLP all accepted |
| Local shareholding | At least 30% local shareholding by Singapore Citizens or PRs | Applies to government-backed schemes |
| Operating history | Minimum 6 months (some products); 2+ years preferred | Most banks prefer 2–3 years of operations for standard term loans |
| Annual revenue | Recommended minimum $200,000 per annum for most bank products | Startup schemes may have lower thresholds |
| Director's income | At least 1 guarantor with minimum $30,000 p.a. | Banks assess personal credit of all directors |
| Group turnover | Under $500M for SME schemes | Most Singapore SMEs qualify easily |
Although the SME Working Capital Loan doesn't require physical collateral for standard loan amounts, banks almost always require personal guarantees from all directors. This means founders are personally liable if the business defaults — a commitment that can feel more significant than asset-based collateral. This is the most commonly overlooked requirement in business loan applications.
| Loan Type | Indicative Rate | Max Quantum | Tenure |
|---|---|---|---|
| SME Working Capital Loan (EFS) | ~6%–8% p.a. EIR | $500,000 | Up to 5 years |
| Business Term Loan | ~7%–10% p.a. EIR | $500K–$1M+ | Up to 5 years |
| Trade Loan | ~4%–7% p.a. | $10,000,000 | Up to 1 year per drawdown |
| Trade Factoring | ~1.5%–3% per month | Based on invoice value | 30–90 days per invoice |
| Property-backed business loan | ~3%–6% p.a. | Up to 75% of property value | Up to 30 years |
As announced by MOF on 29 July 2026, the enhanced 70% risk share under the Enterprise Financing Scheme will take effect from 1 September 2026 to 31 March 2027. This means banks carry only 30% of the credit risk, making approvals more accessible for SMEs during this period.
For business owners who own a private condominium, landed property, or commercial unit, a property equity cashout is often significantly cheaper than an unsecured business loan — and available in much larger amounts.
An SME Working Capital Loan caps at $500,000 at 6%–8% EIR. A property equity loan against a $2M condo can provide up to $1.5M at 3%–6% p.a. — with no business revenue requirement, no director income assessment, and potentially no income check at all if the loan stays within 50% of the property's value.
For business owners who need more than $200,000 and own private property, VeFi recommends assessing the property equity route alongside the business loan route — the cost saving is typically substantial.
See our detailed guide: Can I Use My Property Equity to Fund My Business? and our guide on Trade Factoring for Singapore SMEs.
A loan broker adds specific value in business lending for three reasons. First, banks differ significantly in their appetite for different industries, business ages, and loan sizes — a broker knows which bank is most likely to approve your specific profile before any application is submitted. Second, multiple applications trigger multiple CBS enquiries, which progressively damage your credit score — a broker identifies the right lender first. Third, brokers can structure the application to present your case in the most favourable light within the bank's own assessment criteria.
VeFi brokers business loans across DBS, OCBC, UOB, Standard Chartered, Maybank, and CIMB — covering SME Working Capital Loans, Business Term Loans, Trade Factoring, and Property-Backed Business Financing. We serve business owners across Singapore from Tampines, Jurong, and Woodlands to Orchard, Toa Payoh, and the CBD.
Free assessment, 48-hour response. Tell us your business profile and we'll identify the right product and the right bank — before anything is submitted.