Quick answer: SME business loans in Singapore range from government-backed Enterprise Financing Scheme loans (up to S$500,000 working capital, 50% government risk-share) to unsecured bank term loans, merchant cash advances, invoice financing and digital-lender loans from providers like Funding Societies. Match the loan type to your need — working capital, trade, or equipment — and compare EIR, not just the headline rate.
Money’s not free, but the right business loan comes close. Whether you’re six months in or scaling up, the trick is finding a facility where the terms don’t eat your margin. This one can, that one wait for offer. Know the difference, and you keep more of your own cash working.
Whether you’re opening a second outlet or bridging a cash-flow gap, Singapore’s SMEs — 99% of the country’s enterprises, per Enterprise Singapore — have several financing routes to choose from, distinct from the personal loan options covered elsewhere on this site. This guide covers the main SME loan types, current government-scheme terms, and what lenders expect to see.
Types of business loans in Singapore
| Loan type | Typical amount | Best for |
|---|---|---|
| EFS – SME Working Capital Loan | Up to S$500,000, 50% govt. risk-share | Daily operational needs |
| EFS – Trade Loan | Up to S$10 million, 50% govt. risk-share | Trade-related financing |
| Unsecured business term loan | Up to ~S$500,000 | Operations, expansion, no collateral |
| Merchant Cash Advance | Up to ~4x average monthly POS transactions | Retail/F&B with card terminals |
| Invoice financing | Up to ~80% of invoice value | Reliable customers, long payment terms |
| Business overdraft | Varies, interest on amount drawn | Flexible short-term cash flow |
Government-assisted loans: the Enterprise Financing Scheme (EFS)
The Enterprise Financing Scheme, administered by Enterprise Singapore with participating banks, shares your loan’s default risk with the lender, making it easier to qualify. As of April 2026, key parameters are:
- SME Working Capital Loan: up to S$500,000 per borrower, with a 50% government risk-share.
- Trade Loan: up to S$10 million per borrower (individual cap), 50% government risk-share, within an overall S$50 million EFS cap per borrower group across all facilities.
- Fixed Assets Loan: up to S$30 million per borrower, 50% government risk-share.
General eligibility: registered and operating in Singapore, with at least 30% local shareholding, and meeting Enterprise Singapore’s SME size criteria. These caps and risk-share percentages were revised in Budget 2026 — confirm current terms with Enterprise Singapore or your bank, as scheme parameters change periodically.
Other loan types explained
Unsecured business term loans don’t require collateral but often need a personal guarantee from directors — useful for operations or expansion, typically repaid over 1–5 years. Merchant Cash Advances (MCAs) suit retail and F&B businesses with card terminals, sized against recent POS transaction volume and repaid via automatic deductions, usually over 6–9 months. Invoice financing lets you draw against unpaid invoices rather than wait for customers to pay — useful if you have reliable customers but long payment terms. A business overdraft is a flexible credit line where you only pay interest on what you draw.
How to choose and prepare
- Match the loan to your need — invoice financing for delayed customer payments, MCA for retail with steady card sales, a term loan for a one-off expansion.
- Keep clean financial records — profit and loss statements and balance sheets, ideally via accounting software, since lenders will scrutinise these closely.
- Maintain your credit standing — avoid late payments and excessive simultaneous applications, both of which can hurt approval odds.
- Prepare your documents: directors’ NRIC/passport, ACRA business registration profile, financial statements, 6 months of bank statements, and personal guarantees if required.
Providers to consider
The banks and platforms below all offer SME financing. Rates and eligibility change frequently — confirm current terms directly.
1. OCBC Business First Loan
A government-assisted loan aimed at newer businesses (typically 6 months to 2 years old), with no collateral required.
- Contact: +65 6538 1111
- Website: ocbc.com/business-banking
For the new business still building a track record. Government-assisted means the rates are friendlier than most. No need to put up your property or inventory. Suits you if you’re past the six-month mark and your daily takings are steady. Application is straightforward, no song and dance. Value is solid for a first facility.
2. DBS Business Term Loan
Available under the SME Working Capital Loan scheme, with tenures up to 5 years — see our DBS business loan review.
- Contact: 1800 222 2200
- Website: dbs.com.sg/sme
Up to five years to repay, so your monthly outflow stays manageable. The SME Working Capital scheme keeps the interest practical. Best for stable businesses making a considered move—new machinery, a second outlet. You’ll talk to a proper banker, not a bot. The paperwork asks for details, but that means the terms are clear from the start.
3. UOB Business Loan
Bundles SME and other UOB facilities; no collateral required but may need personal guarantees.
- Contact: +65 6259 8188
- Website: uob.com.sg/business
Already have a UOB account? Then this loan slots in easily. No need for collateral, but they will ask for personal guarantees—standard for unsecured. The real value is bundling with your other facilities; one bank, one headache less. Processing is quicker for existing customers. A steady option if your banking is already here.
4. Standard Chartered Business Instalment Loan
An unsecured loan generally aimed at more established businesses, with repayment tenures up to 5 years.
- Contact: +65 6743 3000 (Business Banking)
- Website: sc.com/sg/business
For the business with a few years of accounts and predictable revenue. Unsecured, so no assets tied up. Repayment stretches to five years, making it easier to budget. The service feels premium, and your application gets individual attention. Best when your credit history is clean and your numbers show consistent growth. Established businesses will find the process smooth.
5. Funding Societies
A digital SME lending platform offering financing up to several million dollars depending on the product, plus smaller quick-turnaround loans that can disburse within 24 hours. Includes startup-oriented financing options.
- Location: 108 Robinson Road #06-01, Singapore 068900
- Contact: +65 6221 0958 · [email protected]
- Website: fundingsocieties.com
FAQs about business loans in Singapore
Digital from start to finish. Need cash in 24 hours? This platform delivers. Loans scale from small working capital to millions, so it grows with you. Ideal for e-commerce and tech where speed matters. No branch visits, no relationship managers—just punch in your details and see your rate online. You pay for the speed, but when inventory is waiting, time saved is money earned.
What’s the difference between secured and unsecured business loans?
Secured loans require collateral like property or equipment; unsecured loans don’t, though they often require a personal guarantee from directors and typically carry a higher interest rate to offset the lender’s risk.
Can startups get business loans in Singapore?
Yes — options like OCBC’s Business First Loan and Funding Societies’ startup-oriented financing are designed for businesses as young as around 6 months old.
How long does business loan approval take in Singapore?
Digital lenders can approve smaller loans within 24–48 hours; traditional banks typically take a few days to about two weeks, depending on documentation completeness.
What documents are needed for a business loan application?
Typically directors’ NRIC/passport copies, ACRA business registration documents, financial statements, 6 months of bank statements, and personal guarantees from directors if required.
Last updated July 2026. EFS figures cross-checked against multiple public sources as of 22 July 2026, reflecting the scheme update effective 1 April 2026 — confirm current terms directly with Enterprise Singapore, as government scheme parameters change periodically.
Disclaimer: This article is for general information only and is not financial advice. Compiled from publicly available sources; while we aim for accuracy, we do not guarantee completeness. Confirm all terms directly with the lender or Enterprise Singapore before applying. Let us know if you spot anything that needs correcting.
