Other Financing
Other Financing
One of the biggest struggle that new companies face is the lack of track record or even an existing operation. Thus, it becomes almost impossible to obtain a traditional business loan. Even if a loan is obtained, it is likely that you might be faced with a high interest loan (possibly 3-4% per month). As such, when you actually do the math, a personal loan might actually be a way better option.
Mortgage Financing

- Resi/Commercial Property Financing
- Property Re-financing
- 1st & 2nd legal mortgage
- Cash-out of property
Overdraft Financing

- Revolving credit facility
- Secured with collateral (e.g; property, fixed deposit, key-man Insurance, vehicles)
The Classic Personal Loan
Here’s a classic path to your personal loan
1. It all starts with your income
Depending on your annual income, you may be entitled to a loan quantum that is a multiple of your monthly income. See table below.
Maximum Loan quantum
Maximum Loan quantum | Banks | Licensed Money Lender |
---|---|---|
Less than S$20,000 | – | Max S$3,000 |
S$20,000 – S$30,000 | – | x6 |
More than S$30,000 | x2 | x6 |
More than S$40,000 | x4 | x6 |
More than S$120,000 | x8 | x6 |
As you can see, banks in Singapore only serve the segment earning more than $30,000 a year and can lend up to 8 times your monthly income. Thus, anyone earning less than S$30,000 can only borrow from a licensed money lender.
Individuals earning S$20,000 to S$30,000 are best served as they can borrow up to 6x of their monthly income. For individuals with no declared income, or income lesser than $20,000, the maximum loan they can obtain is S$3,000.
2. Second, your Credit Bureau Score
The second most important thing that many lenders see is your Credit Bureau Report. Here’s a quick guide to understand your credit bureau report.
While there are many things to look at the report, the 3 things that can determine your eligibility are:
- Overall Grade
- Presence of default or bankruptcy
- Absence of score
Maximum Loan quantum
Factors | Banks | Licensed Money Lender |
---|---|---|
Overall Grade | Min DD and above | No restriction |
Presence of default or bankruptcy | Not eligible | Not eligible |
Absence of score | Typically not eligible | No restriction |
3. Third, interest rates
Banks | Licensed Money Lender |
---|---|
6 – 8% p.a. (EIR) | 1 – 4% per month |
1.5% processing fee | 2.5 – 7% processing fee |
Effective Interest Rate (EIR) | Annual Percentage Rate (APR) |
---|---|
The effective interest rate, or EIR, must be stated alongside the advertised rate in Singapore. This includes processing and other costs, as well as the specifics of your repayment plan. In a nutshell, EIR displays the personal loan’s “actual” interest rate as it takes into account the compounding of the interest as you make your repayment. | The yearly interest earned by an amount charged to borrowers or paid to investors is referred to as the annual percentage rate (APR). APR is a percentage that indicates the real annual cost of money for a loan or investment over the period of the loan. This includes any fees or other expenditures incurred throughout the transaction, but does not include compounding. |
4. Figure the tenor.
Banks | Licensed Money Lender |
---|---|
Up to 5 years | Up to 24 months |
In summary
Your income is less than $20,000 | You do not have a good CBS record | You need a larger quantum but earn less than $40,000 |
---|---|---|
Licensed Money Lenders can provide loans up to $3,000 | As long as you are not in default, licensed money lenders are still open to providing credit | While most banks can only extend up to 2 times, Licensed money lenders can lend up to 6 times your monthly income |
Why get other Financing Funding 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.