Looking for a super convenient way to get a competitive business loan?

A business loan is a loan specially catered to business owners for various business needs. It is typically unsecured, so no collateral is required.

A business loan can be used for various business purposes, such as inventory expansion, equipment upgrade, purchase of new machinery, upfront payment of materials, staff salaries, operating expenses and more.

Depending on the sum of money you’re borrowing, your business loan may be regarded as a long-term loan or short-term loan. 

A long-term business loan involves large amounts of money coupled with a longer loan tenure that stretches months or even years. You’ll have to make monthly repayments to pay down your debt.

A short-term business loan involves smaller amounts of money with a shorter loan tenure, typically stretching just several months. Instead of making monthly repayments to pay down your debt, it is common for the loan to be repaid in full at the end of the loan tenure as defined in your loan agreement. 

You can get small business loans from banks, financial institutions and licensed money lenders in Singapore, such as 111 Credit. Licensed money lenders are a viable option if you need to get a business loan for a quick injection of working capital — the amount of paperwork as well as processing time required are much lesser compared to traditional lenders. 

You can borrow anywhere from $10,000 to $300,000 on small business loans from licensed money lenders in Singapore.

The average business loan interest rate you can expect from licensed money lenders in Singapore ranges from 2% to 8% per month. Just to put things into perspective, 111 Credit’s business loan interest rate starts from 4.28% per month.

To ensure your business loan application proceeds seamlessly and quickly, prepare the following documents in advance: 

• Your company’s BizFile details
• Your company’s bank statements from the last 6 months
• Your company’s financial reports from the last 2 years
• A copy of the ICs (front and back) of all directors and shareholders
• All directors’ and shareholders’ Notices of Assessment (tax filings)
• All directors’ and shareholders’ credit reports from CBS 
• Your CPF contribution to staff in the latest month 
• Your business’ tenancy agreement 

Yes, you can still get a business loan despite having bad credit history. Keep in mind your loan terms are up to the lender’s discretion.

You may want to consider getting a personal loan to fund your new business since business loans in Singapore are usually available only to businesses that have been in operation for at least one year.