Small businesses, have severe cash flow issues that can be fixed with an operational loan. In cities like Singapore, businesses utilise working capital loan Singapore to launch new projects or grow their operations in addition to paying for their regular operational costs.
A lack of working capital can cause several small and medium-sized businesses (SMEs) to fail because they can’t pay their future bills. Most SMEs are aware of the money necessary to fund their daily operations. The ability to access liquid assets for day-to-day operations is essential to the proper functioning of any firm.
To pay for routine expenses like office supplies, rent, payroll, utilities, advertising, business travel, and depreciation, your company must have enough money. You should set aside money in addition to the running costs to cover non-operating expenses, such as interest on bonds, changeable debt, bank loans, inventory charges, and restructuring expenditures.
SMEs are eligible DBS offers working capital loans to SMEs to help them manage unpredictable seasonal sales, boost cash flow, and capitalise on new business ideas. There are various ways that SMEs in Singapore might obtain a working capital loan:
Schemes Assisted by the Government
SME Working Capital Loan
You can satisfy your operating cash flow needs with this government-assisted funding arrangement. This SME working capital loan has several noteworthy aspects, including:
- The highest loan amount that a borrower may obtain is SGD 5,00,000. However, the bank’s credit assessment serves as the foundation for it.
- The loan has a five-year repayment period.
- The processing charge is a meagre 1.5%.
- The interest rate is determined by how the bank assesses the associated risks.
A quick and easy online application process that gathers the required data from ACRA or MyInfo Business
Eligibility Requirements:
Businesses registered and operating in Singapore, such as businesses, partnerships with limited liability, individuals, and partnerships registered with the ACRA.
- A cooperating bank, like DBS Bank, must assess and authorise the loan.
- At least 30% of the local stock in the lender needs to be held directly or indirectly by Singaporeans or Permanent Residents.
An SME is considered to have satisfied the requirements for obtaining “SME Working Capital” if the size of its group employment is equal to or less than 200 employees or if its group yearly income is equal to or lower than SGD 100 million.
How Can I Apply in Singapore for a Working Capital Loan?
1. Go to the “Apply for SME Loan” tab on the website of the specific institution, such as DBS. To complete the required information, visit MyInfo Business or ACRA.
2. If DBS is not your operational bank, you could be required to submit the most recent three-month bank statements and two-year financial statements.
3. Ascertain that your guarantors are prepared to approve the application.
4. Check the online progress of your loan application. For further information, utilize the DBS IDEAL business banking app.
5. The bank will present you with an offer if your loan application is approved.
6. You can accept the offer locally or online with the help of a relationship manager.
7. You will receive a notification from the bank as soon as the money is deposited into your DBS business account.
In addition to the SME Working Capital Loan Singapore, government-assisted programs in Singapore offer SME Fixed Asset Financing, Project Loans, Enterprise Financing Scheme Trade Loans (EFS-TL), and Venture Debt Loans.
