Steps In Getting A Business Loan In Singapore

Setting up a business in Singapore is always a big deal. But to start up such a project, you need to make a huge investment. But most of the time, it is not possible to invest that much huge amount of money. So, in this case, financial support is required in the form of a business loan to start up your business or make it better if you already have one. And if you want a business loan, you will be happy to know that it’s not that hard to get approval for a loan in Singapore.


Starting up a business in Singapore 


For starting up a business in Singapore, there are some steps and methods you need to have some basic knowledge about. To initially set up a business, you need to have a company name that ACRA approves. Your company must have at least one shareholder and have at least one director who is a Singapore resident. Your company secretary must also be a Singapore resident. Also, you need to have a minimum paid-up capital of S$1 and a registered office address.


Licensing and getting permits 


Like everywhere else, if you want to set your company in Singapore, you need to complete some legal steps and procedures. You need to have a license and permits depending on your business type, which a Singapore government agency issues. In addition to your company name being approved by ACRA, your office hours should be registered at least three hours per weekday. If your business requires importing or exporting, your company should have customs registrations with Singapore customs. GST registration is needed on your goods and services if your annual taxable revenue exceeds S$1 million.


Already having a business 


If you are the owner of your company and want your business to expand and succeed on a larger scale, a business loan can be essential. If you want to outgrow your competitors taking a proper loan can affect your business in a very positive way. So it is advised for entrepreneurs in Singapore who want to expand and have more financial profit but are having financial issues to take a proper business loan. Once you get a company loan in Singapore, it will help maximise your cash flow and stabilise your account transaction activities, which in the long run, is very beneficial.


Getting a business loan for your company


Having a company in Singapore and expanding it is certainly quite ambitious, and for that, you need a business loan. To establish such a project getting a proper business loan is necessary. You can now apply for a business loan in the bank branch office or via the internet, as you can even get fast business loans online. You will be getting a call from the financial institute you applied to, as then you have to submit your needed documents for getting the approval. Once the loan is approved, you need to sign documents to agree to the terms and conditions.


Requirements for getting a business loan 


You can be a Singapore resident or a foreigner, but it has some requirements to get a business loan for your business. To apply for a business loan, you need to show ACRA business documents, as this shows directors, shareholders, the company’s paid-up capital, and your other business information. You need your financial statement and bank statement to check your daily bank account activities and balance sheets. You also need NOA of all the directors over the last two years to check their declared incomes and CBS reports of them all to see their past repayments, any current loans, or any high unsecured loan amount.


Where to get business loans from


A few different types of financial organisations lend business loans in Singapore, which includes banks that are the most common ones. These private lenders are companies that mainly lend company or business loans and family offices, wealth administration firms that serve investors with very high net worth. There is also a new category of lenders called peer-to-peer lenders and other non-bank financial institutes licensed by either Ministry of Law or the Monitory Authority of Singapore.


Categories of business loans in Singapore


In Singapore, there are many types of business loans to choose from, such as the unsecured business term loan that is not secured by any physical collateral, be it property or equipment, thus not a mortgage system. These loans are very flexible so are very popular amongst SMEs. Or, if you have a retail or F&B business involving credit card terminals, then Merchant Cash Advance is the right choice for you. Or, if you want to put invoice credit faculties as collateral, you can go for invoice financing. A business overdraft is good for short-term working capital in SMEs or government-assisted business loans introduced in 2020 due to the Covid-19 pandemic to support companies in Singapore.


Advantages of taking a business loan


Business loans or any other SME loans are very helpful if you try to start your business and establish your company as there is a risk of late payments, which in the long term might hurt your business. If your clients or customers have late payments because you have to urgently pay your dealers, suppliers, and employees, you have cash flow issues. Thus it is recommended to take a business loan as it helps improve cash flow and working capital. It also allows you to expand plans and projects and take over your competitors, and ultimately save you more money in the long run.




As in Singapore, many enterprises are having expansion plans and executing new projects. So if you want to outgrow them but you cannot as you are having financial problems or cash flow issues, taking a business loan are highly recommended as it is extremely beneficial. There are many types of loans to choose from, as there are many schemes and plans for businessmen in Singapore. So feel free to take the best kind of loan that suits your business and is profitable to you and your company.