Business Financing Solutions

Unsecured business term loans are a popular type of financing where the lender provides a lump sum of money to the borrower without requiring collateral. The borrower repays the loan in fixed intervals with interest over an agreed period, typically ranging from 12 to 60 months. This flexible option allows businesses to access necessary funds quickly and efficiently, supporting their growth and operational needs without risking valuable assets.

The Enterprise Financing Scheme – SME Working Capital Loan (EFS-WCL) provides Singapore SMEs with essential financing to meet their operational cashflow needs. With the maximum loan quantum enhanced to S$500,000 from 1 April 2024, this scheme ensures businesses have access to vital funds. Offering a repayment period of up to 5 years and a risk-share component with EnterpriseSG, the EFS-WCL is designed to support business stability and growth, helping SMEs navigate financial challenges and sustain their operations effectively.

A business overdraft is a standby revolving credit facility integrated with your business current account. It provides the flexibility to withdraw funds exceeding your available balance, ensuring that your business can cover unexpected expenses and manage cash flow fluctuations. Interest is only charged on the amount utilized and is calculated on a daily basis, making it a cost-effective solution for short-term financing needs.

Trade financing is a facility provided by reputable financial institutions to bridge the gap between importers and exporters. Exporters mitigate payment risk and accelerate receivables with arranged payments from FIs. Importers benefit from reduced risk, as FIs release payments upon receiving the bill of lading, and enjoy extended credit terms. For domestic trades, FIs pay suppliers on behalf of the client while granting extended credit terms. This solution ensures smooth, secure, and efficient trade transactions, supporting business growth and stability.

Revenue-based financing offers a flexible, non-dilutive funding solution for fast-growing businesses, particularly startups, SMEs, and e-commerce companies. This model provides quick access to capital without requiring equity or collateral. Repayments are based on a percentage of future revenue, aligning with the company’s cash flow, which reduces financial strain during slower periods. This funding method enables businesses to scale and seize growth opportunities efficiently, with funds typically available within 48 hours following a streamlined application process.

Invoice financing/ factoring allows businesses to improve their cash flow by converting unpaid invoices into immediate working capital. This solution is ideal for companies with significant accounts receivable but long payment cycles. By selling their invoices to a factoring company at a discount, businesses can receive a substantial portion of the invoice value upfront. This not only helps to maintain steady cash flow but also provides the necessary funds to cover operational expenses and invest in growth opportunities without waiting for customer payments. Factoring is especially beneficial for industries with long billing cycles, such as manufacturing, logistics, and professional services.

Purchase order (PO) financing helps businesses fulfill large customer orders by providing the necessary capital to pay suppliers upfront. This financing solution allows businesses to take on substantial orders without straining their cash flow. A lender pays the supplier directly, enabling the production and delivery of goods. Once the customer pays the invoice, the business repays the lender, including any fees. PO financing is ideal for businesses that receive large orders but lack the immediate funds to fulfill them, ensuring they can meet customer demand and grow effectively.

Commercial/industrial property financing provides businesses with the capital needed to purchase, develop, or refinance commercial and industrial properties. This type of loan is tailored to help businesses acquire real estate for operational use, such as offices, warehouses, factories, or retail spaces. By leveraging this financing, businesses can secure prime locations, expand their operations, or invest in property improvements. With flexible terms and competitive interest rates, commercial property financing supports long-term business growth and stability by allowing companies to build or enhance their physical infrastructure.

A secured working capital loan provides businesses with the funds needed to cover daily operational expenses, such as payroll, inventory, and accounts payable, by using assets like equipment, real estate, or inventory as collateral. This type of loan offers lower interest rates and higher borrowing limits compared to unsecured loans due to the reduced risk for lenders. Secured working capital loans are ideal for businesses seeking to maintain liquidity, manage cash flow fluctuations, and invest in short-term growth opportunities while leveraging their existing assets.

Refinancing with cash-out allows property owners to refinance their existing mortgage and access a portion of the property's equity as cash. This loan option provides liquidity to address cash flow issues, with repayment terms typically up to 25 years. Some financial institutions offer interest servicing options, where only the interest is paid initially, easing cash flow management. This solution is ideal for those needing immediate funds while leveraging their property's value, and can also accommodate borrowers facing Total Debt Servicing Ratio (TDSR) constraints with tailored advice and financing alternatives.

Equipment financing/ hire purchase loan enables SMEs to acquire essential machinery and equipment without a significant upfront cost. This financing option spreads the cost over a fixed period through monthly installments. The business gains immediate use of the equipment while paying for it over time, preserving cash flow and capital. At the end of the term, the business typically owns the equipment outright. This solution is ideal for businesses looking to expand or upgrade their operational capabilities without straining their finances.

Business owners can leverage personal loans as a flexible financing option to support their business needs. Unlike traditional business loans, personal loans often have simpler application processes and fewer restrictions on usage. This makes them an attractive choice for entrepreneurs needing quick access to funds for covering operational expenses, purchasing inventory, or investing in growth opportunities. With competitive interest rates and fixed monthly repayments, personal loans provide a straightforward way to manage cash flow and finance business activities without the need for collateral or extensive documentation. This can be a practical solution when conventional business financing options are unavailable.