Business Term Loans
A simple straightforward Collateral-free loan.
Business term loans provide a reliable way to finance your business needs with structured, predictable repayments over a fixed period. These loans can help you secure large sums upfront for investments in equipment, expansion, or working capital, with terms that align to suit your business’s financial health and goals.
Whether you’re looking to grow, launch a new product, or simply stabilize cash flow, business term loans offer flexible, multipurpose funding for various applications.
Compared to trade financing options designed for import-export businesses, or revenue-based financing for companies with fluctuating revenue, term loans provide consistency in both repayment schedules and available funds.
The benefit of a business term loan is its flexibility of usage. This includes:
- Purchasing of inventory
- Hiring of new staff / payroll
- Refurbishments
- Rental downpayment
- Purchasing of equipment
These criteria often include a minimum business operating period such as at least six months, demonstrating the stability and potential for future growth. Lenders also assess the business’s annual revenue and monthly bank balance to ensure the ability to repay the loan. Additionally, the personal credit scores play a crucial role, with higher scores increasing the likelihood of approval and potentially leading to better loan terms. Financial documentation, including recent 6 months bank statements, 2 years financial statements, and NOA, may also be required to assess the company’s financial health and cash flow.
However, new businesses with strong projections may also be considered. It’s essential to review criteria for other financing options, like property-backed loans, if collateral is an option, or trade financing for companies involved in imports and exports.
Interest Rates
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
Any business seeking predictable monthly payments and large upfront capital can benefit from term loans, especially those investing in growth, expansion or sustain daily operations expenses.
- 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)
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
Repayment periods vary but generally range from 1 to 5 years.