Putting up a business comes with tons of sacrifices and money. Even if you have the skills and the passion, it’s all for nothing if you don’t have the money to make it work. This is one of the many reasons why some businesses would close only after a year. There will always be times when the going gets tough, and profits are not enough to keep your business function like before. That’s why getting a Business Loan is important. Once you get the help you need, you can slowly start building your business again.
Equity is one such business financing portal where you can find all of the business loans your company might need. There are four business loans in Singapore at the moment, and it’s time for you to check if you are qualified to apply for any of these loans. Check if you are eligible and start looking for a business loan for you.
The Qualifications Needed to Apply for a Business Loan
Before applying for a business loan, you must check whether you can apply for it or not. You need to check only three things, but these are very important, and you won’t be allowed to apply if you lack even one of these things:
- Your business has to be incorporated in Singapore for a minimum of two years.
- It has to be at least 30% Singaporean or Permanent Resident Shareholding.
- It has to have annual group sales of up to S$100 million, or the group employment size is not more than 200 employees.
If you have all of the above, the next step is to see which of the four business loans will fit perfectly according to your business needs. These four business loans are made exclusively for every SME, and you should take full advantage while it’s still available. You can obtain up to S$1,000,000 and stretch it up to five years too.
What are the Four Types of Business Loans in Singapore?
The four types of business loans in Singapore are the SME Working Capital Loan, the Temporary Bridging Loan, the Business Terms loan, and the SME Micro Loan. Each of these has certain qualifications, which you will have to take a look at. You might be qualified to apply for all, or maybe you only need to apply for one loan type. To better understand what each business loan is about, read more below:
- The SME Working Capital Loan – This type of business loan is supported by the government, and it’s for SMEs and other businesses in Singapore. Those who are qualified can get up to S$1,000,000, compared to the initial minimum of S$300,000.
- The Temporary Bridging Loan – This is a financing product by the Singapore Government and is administered by the Enterprise Singapore for SMEs and Businesses in Singapore.
- The Business Term Loan – This is offered directly by Banks in Singapore. It is separate from government initiatives like the Temporary Bridging Loan.
- The SME Micro Loan – It is the lowest possible business loan, which is used to help SME businesses get a foothold for business development.