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Business Term Loans

A simple straightforward Collateral-free loan.

A business term loan is the most common type of financing that allows businesses to obtain financing without the need of any collateral. They can be used for pretty much any business need from working capital to purchasing of new equipment.
A business term loan is a type of loan where a lump sum amount is provided to a business upfront and then repaid over a pre-agreed period of time, typically ranging from three months to five years. The repayment schedule consists of fixed monthly installments, which include both principal and interest. The interest rate and the loan amount are determined by the lender based on factors such as the creditworthiness of the borrower, the purpose of the loan, and the financial health of the business. By making regular payments, the borrower gradually pays off the loan amount over the term, allowing the business to fund large expenses and investments over an extended period of time.

Interest Rates

Depending on your credit quality, your interest rate might differ. For most banks, interest rates fall between 5.5% to 11% p.a, while alternative lenders start at 1-3% per month. Do note that loans typically come with a processing fee of about 1-5%.
Business Term Loan
Banks
Digital Banks
Private Funders
Loan Amount
$30k – up to $1m
$30k – up to $1m (Usually up to 300k)
$3k – up to $1m
Interest %
EIR 7.25% – 9.5% per annum (i.e Flat 3.6% – 5%)
8.88% – 12.88% per annum
Flat 1.5% – 4% per month
Tenor
3 – 5 years
1 – 5 years
6 – 12 months
Processing Fee
1.5% – 3% of approved loan amount
1% – 2% of approved loan amount
3% – 5% of approved loan amount
Processing Time
2 – 4 weeks
1 – 3 weeks
1 week
Eligibility
Registered business and physically present in Singapore. Minimum 30% shareholdings held directly/indirectly by Singaporean(s) or PR

Why get your Business Term Loan through Beez Rev?

A team that will support you

We have a dedicated team that will walk you through your entire loan process and help you do the market research you need.

We let lenders compete for your loan

Be ready to be spoilt for choice when we help you compare the best deals across all banks and non-banks so you only get the lowest interest rate and the highest cash out amount. Our rates are same as what the banks can offer or even better.

Frequently Asked Questions

Yes, if you have available collaterals, you can consider taking a secured loan using publicly traded shares. You can also cash out your property with a property-backed loan which commands interest of less than 3% p.a. Alternatively, if you can also sell your invoices through invoice financing whose interest is also lower at 3-4%.
  • The SME Working Capital Loan, offered under ESG’s Enterprise Financing Scheme, provides an unsecured loan of up to SGD 500,000. The default risk share is at 50%, while younger companies (incorporated within the last 5 years) enjoy a higher risk share of 70%.
  • Most Bank’s unsecured working capital loan offer financing to SMEs of up to S$500,000.
  • As for non-banks, unsecured business term loans are usually capped at S$50,000 although there are outliers that can go up to S$1,000.000.

Document required are quite standard across most banks and lenders. They include:

  • Past 6 months bank statements
  • Financial Statements for the past 2 years (Management Accounts are acceptable)
  • CBS report for the guarantor(s) (At least one)
  • Personal Notice of assessment for the 2 latest years for the guarantor(s) (At least one)
  • Money Lender Credit Bureau Report (Optional)
Non-bank lenders can take a much shorter time as fast as 1-2 days but typically a loan application takes at least 1-2 weeks. As for banks, these can take up to 1 month as the time for assessment is longer.
Most banks have a early repayment penalty applicable of about 2-5%. Some non-bank lenders allow for an early repayment without fee and some have a minimum loan period of 6 months and is without fee after.

Typically at least one personal guarantor is required. The guarantor needs to be qualified such that they:

  • Have at least an annual income of more than S$24,000
  • Is a Singaporean or PR
  • Has no default or bankruptcy records outstanding