Here is a rundown of the common types of instant business loans in Singapore you can secure for your business.
1. Unsecured Business Term Loan
An unsecured business term loan is funding assistance where your bank or financial institution doesn’t need any business asset or personal asset to use as collateral for the loan. The funding usually ranges between $50, 000 to $500, 000 with 3 to 5 years installments. To qualify for these loans, you must have a good financial history, credit rating or cash-flow forecast.
2. SME Micro Loan
SME Micro Loan is a Singapore government’s initiative of helping Small, and Middle-sized businesses (SMEs) to get sufficient funds in purchasing work equipment, and to fulfill critical business needs. The maximum funding for SME Micro loan is $100, 000, and it comes with fixed monthly installments.
3. SME Working Capital Loan
SME Working Capital Loan was introduced in the Singapore government’s 2016 budget as another initiative of helping SMEs to get unsecured business loans. The maximum capital loan you may receive from this initiative is $300, 000 and is repayable at any time. It also doesn’t have any penalty or pro-rated interest rates.
4. Trade Financing
If you’re looking for quick funds to order for goods from suppliers, then this is the loan for you. It’s given out based on your credit. Therefore, your bank will give you a letter of credit to give your suppliers. After which, you can purchase your desired products until you exhaust your financing limit. You will, however, pay a percentage interest to the bank.
5. Property Loan
Property loan is a loan type that’s designed to help you get financial assistance for your business needs by using your property as collateral for the loan. Most businesses prefer it because it has more affordable interest rates.
6. Equipment Financing
In Equipment financing, you get financial aid to help you acquire goods through leasing or hire purchase. It’s a quite favorable loan option for most entrepreneurs because it doesn’t only help you expand the business but also help unlock your cash flow.