SME Working Capital Loan Singapore is a loan used by companies to cover day-to-day operational expenses in Singapore.

To support viable SMEs that may have cash flow concerns or wish to continue growing their business, the Government has introduced a new SME Working Capital Loan scheme, for loans of up to S$1million per SME. Under this scheme, the Government will co-share 90% of the default risk of these loans with participating financial institutions, to encourage lending to SMEs. This will help SME pay a lower amount of interest.

The SME Working Capital Loan will be available for three years, started in 2016 and was revised in 2020 to the loan to $1million. Recently, Government has just announced to renew their Working Capital loan scheme.

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Suitable for companies that are at least 2 years old, enjoy cashflow certainty with a government-assisted working capital loan of up to S$1million*.

  • Working capital of up to $1millon
  • Tenure up to 5 years
  • Interest rate from 3.5 – 5.5% per annum
  • No Collateral
  • Fast and immediate attention to your company details

Funding Support

Working capital (e.g. daily operations)Up to $1millionUp to 5 yearsSubject to Participating Financial Institutions’ assessments of risks involved

To help SMEs access working capital loans, Enterprise Singapore shares the risk of loan defaults with Participating Financial Institutions in the event of company insolvency.

  1. Must be Singapore registered SME company and at least 1 years in business
  2. Annual turnover $100K and more
  3. Group employment size size of not more than 200 employees
  4. Minimum 30% shareholding by Singaporean or Singapore PR

The maximum small business loan funding amount differs among various banks and also depends on your company credit profile (revenue size, industry, cash flow position etc.).

Most banks’ maximum financing amount granted to SMEs range between $300K to $500K. However, it is exceedingly hard to secure the maximum amount unless the company has close to perfect credit profile.

If your main bank is not able to meet your requested financing amount, you can also apply across other banks concurrently to maximize the financing amount you’re targeting.

1. Call and meet our consultants for professional advice.

2. Bring the following supporting documents for the meeting;

  • Bank Statement
  •  Financial statements
  • Personal income tax assessment of owners and directors

The typical turnaround time for SME loan applications is 2 to 4 weeks.

The turnaround time takes this long because

  1. You may not be familiar with the documents required and the application process.
  2. You may have more back-and-forth communication with the banker to get the financing application right.

If you managed to secure approval after the loan application review, you’ll have to wait for about another 1 week for funds to be disbursed. So from application to receiving funds, expect a turnaround time of between 3 to 5 weeks.

For those who can’t afford to wait, alternative financiers such as P2P crowdfunding platforms is another viable option as they typically process applications faster, within 1 week is the norm. However, be prepared to pay for higher interest rate or fees compared to bank options.

Most SME loan applications can be rejected due to multiple reasons, such as

  1. Approaching the wrong banks
  2. Business owner’s personal credit profile
  3. Limits to financing for existing bankers
  4. Weak cash flow

Imagine this scenario: You require funds urgently. Perhaps, to confirm bidding for a tender or seize opportunity for a big project .

Yet, when your SME loan application is declined, you will either have to cancel or postpone this project. Your company’s expansion plan might be stalled due to the missed opportunity.

Moreover, when your application is declined, you might not be able to submit another application to the same bank for the next 6-12 months!

It is critical that you identify the right bank to seek financing with and to be able to address the bank’s credit concerns and queries adequately, to minimize rejections.

There are various working capital loan products available to meet the different requirements of SMEs

Common SME loan facilities include:

  • Unsecured business term loans
  • Trade financing (Letter of Credit)
  • Invoice Financing / Factoring
  • SME Micro Loan
  • SME Working Capital loan

How do you cut through the complexity and technical jargon to determine the most appropriate working capital loan to utilize?

Through our expertise and experience in securing SME finance, we describe to you the various financing products in basic terms and explain how you can best utilize them for your business.

There are close to 20 banks & financial institutions (FIs) providing small business loan to SMEs.


Therefore, there is no definite answer to this because different banks have varying credit criteria and risk appetite.


Do you know that some banks shun certain industries whereas other banks might welcome these same industries?


However, most SMEs are not aware which banks are suitable for their respective profile and could waste precious time speaking with banks that are not the right fit.


Aside from traditional mainstream banks, there are also multiple alternative financiers offering various financing options to SMEs.


Assisting SMEs with business financing remains our core business.


Due to our familiarity with the credit criteria of the various banks, we can help identify the most suitable banks for your company’s profile to ensure highest chances of commercial loan approval at the best terms.

If your personal credit rating is bad, your commercial loan application might be adversely affected.

When you apply for a SME loan in Singapore, your personal credit record will usually be assessed by the relevant banks. Your personal credit record will thus affect your company loan approval chances as well.

It is absolutely critical as a business owner to keep your personal credit score acceptable. Any negative impairments on your personal credit will adversely affect your business loan applications, making it next to impossible to obtain any form of business financing.

Therefore, always be conscious to protect your personal credit grading by paying all your personal credit cards, home loan, car loan etc on time. Settle any overdue payments promptly and be cautious not to over-extend your personal credit at all times.

Yes you can but options are very limited for new start ups. Most banks do not provide start up business loan for newly registered companies.


Most banks lend on track record and would require applicant company to have at least 1 to 2 years of operational business history before considering extending financing.


If your business is operational and at least 6 months old, a competent SME loan broker might still be able to help you secure business financing.


However, expect very limited financing options for a start for very young companies and also smaller financing quantum. If you manage to secure any form of business loans, ensure prompt subsequent repayments to build up a good credit record for your company.


As your business matures and coupled with a good credit record, it’ll be easier to source for financing in future from more banks, with more options.

What is the SME loan interest rate?

The SME loan interest rate ranges between 3% to 5% p.a. effective interest rate. Different banks have different rate and rates are subject to respective banks’ credit discretion.

How to apply for a SME loan?

Businesses can apply SME loans from a myriad of banks, financial institutions or alternative lenders. There are about 20+ SME financiers and many more financing products to choose from.

What government assisted financing schemes and loans can SMEs apply for?

SMEs can apply for the Temporary Bridging Loan or SME Working Capital Loan via the respective participating financial institutions.

Do I need to engage a SME loan broker?

Engaging a business loan consultant is optional. If you’re not familiar with banks’ credit criteria, a competent broker might help improve approval chances and negotiate better terms.

Is there startup SME loan available for new business and company?

There are very limited financing options for new startups. Most banks prefer financing companies with minimum 1 to 2 years of operational history.

What is the SME loan eligibility criteria and requirement to qualify for financing?

Every bank have different credit criteria. Generally, most banks require company to have minimum 30% local shareholdings, at least 1 to 2 years old, and revenue of $200K minimally.