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Guide to Small Business Loans in Singapore (2025): Options, Eligibility, and Alternatives
- Yours Digitally
- Sep 10
- 4 min read
Key Takeaways
Compare Singapore’s 2025 government-backed SME loans like the Working Capital Loan (WCL) and Temporary Bridging Loan (TBLP) to find the lowest-cost financing.
Most SME loans require 30% local ownership, annual sales under S$100 million, and good credit standing.
Licensed moneylenders like 1133 Moneylenders offer fast approval small business loans with flexible terms, but interest costs may be higher than banks.
New or small businesses can consider personal loans as alternatives, but keep in mind you’re personally liable for repayments.
Match your loan tenure to cash flow cycles, shorter terms work for inventory and working capital, while longer terms suit expansion.
Be ready with your ACRA profile, six months of bank statements, and board resolution to speed up approvals.
Why Small Business Loans Matter in Singapore
Running an SME is exciting but comes with constant financial hurdles. Cash flow can be unpredictable, suppliers need to be paid, inventory has to be restocked, and operations can’t stop. On top of that, expansion opportunities often need upfront capital, whether it’s opening a new outlet, investing in digitalisation, or hiring more staff.
Choosing the right financing helps your business remain stable while seizing growth opportunities. Below, we cover the main SME loan options in Singapore, their eligibility criteria, and what to do if your business is too new to qualify.
Types of Business Loans in Singapore
1. Standard Business Loan
The most common loan offered by banks.
Usually unsecured, meaning no property collateral needed.
Loan tenure: up to 5 years.
Can be used for most business needs, from working capital to renovations.
2. SME Working Capital Loan (WCL)
Government-assisted loan to support local SMEs.
Loan amount: up to S$1 million.
Tenure: 1 to 5 years.
Eligibility: at least 30% local shareholding, business registered and operating in Singapore.
Benefit: Lower interest rates since the government shares part of the lending risk.
3. Temporary Bridging Loan Programme (TBLP)
Initially launched during Covid-19, still available in 2025.
Loan amount: up to S$5 million.
Tenure: 1 to 5 years.
Eligibility: 30% local ownership.
Suitable for businesses needing large amounts for cash flow support or expansion.
4. Startup Business Loan
Designed for new businesses with little financial history.
Loan amount: typically up to S$100,000.
Documents: business plan, cash flow forecast, or proof of personal income.
Best for: small startups, home-based businesses, or retailers needing seed capital.
5. Business Loan from Licensed Moneylenders
For businesses that don’t qualify for bank loans or need faster funding.
Licensed under the Ministry of Law, ensuring compliance with regulations.
Approval in days instead of weeks.
More flexible for newer businesses or those with weaker credit history.
Downside: Higher interest rates than banks—best for short-term, urgent needs.
Personal Loans as an Alternative for SMEs
If your company is too new or doesn’t meet SME loan criteria, a personal loan can provide quick financing.
Borrow up to 4–6x monthly income (depending on salary & credit).
Documents: NRIC, payslips, CPF history, employment letter.
Used by sole proprietors to pay suppliers, buy stock, or cover urgent repairs. Note: You are personally liable for repayment, even if the business struggles.
Feature | Business Loan | Personal Loan |
Loan Amount | Up to S$5 million (TBLP) | Up to 6x monthly income |
Tenure | Up to 5 years | Up to 7 years |
Documents Needed | ACRA biz profile, GST filings, bank statements, board resolution | NRIC, payslips, CPF history |
Minimum Biz Age | 6 months to 2 years | Not needed (based on personal income) |
Processing Time | Around 2 weeks | A few days |
SME Loan Eligibility in Singapore
Most banks and government-backed loans require:
Local ownership: At least 30% owned by Singaporeans or PRs.
Registered and operating in Singapore: Must be an active ACRA-registered entity.
Annual turnover: Not exceeding S$100 million.
Staff size: 200 employees or fewer.
Operating history: 6 months to 2 years.
Credit standing: Both company and directors’ credit history reviewed.
Documents: ACRA profile, financials, bank statements, GST returns, board resolution.
How to Apply for a Business Loan in Singapore
Compare lenders – Review banks, fintech lenders, and licensed moneylenders.
Use MyInfo – Many banks allow auto-filling company details via SingPass.
Prepare documents – Have ACRA profile, bank statements, GST filings, and board resolution ready.
Choose loan type & tenure – Match to your business cash flow cycle.
Submit application – Bank approvals usually take 2 weeks; moneylenders can be much faster.
Conclusion
Financing can make or break an SME. From government-backed loans with low rates to fast-approval licensed moneylender loans, Singapore offers many ways for businesses to stay resilient and grow.
At 1133 Moneylenders, we provide flexible personal loans that can support your small business—whether you’re facing cash flow issues or ready to grab new opportunities. With transparent terms and quick processing, we’re here to help SMEs stay on track.
Need a flexible loan to support your business? Apply for a personal loan with 1133 Moneylenders today.
FAQs for Business Loans
Q1. What documents do I need for a business loan vs a personal loan?
Business loans need ACRA profile, financial statements, and resolutions. Personal loans require NRIC, payslips, and CPF history.
Q2. How fast can I get approved?
Banks: about 2 weeks.
Licensed moneylenders: a few days.
Q3. Can sole proprietors apply for business loans?
Yes, but your personal credit history will be scrutinized.
Q4. Can I repay early?
Most banks allow it, though some charge early repayment penalties. Licensed moneylenders often allow flexible repayment options.
Q5. Do I need collateral for an SME loan? Most SME loans in Singapore are unsecured, but banks may still ask for personal guarantees.
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