What is it?
- A fixed-term business loan with a maturity of at least one year or more.
- Typical Loan maturities or repayment periods range from one year to 5 years.
- Provides businesses with a funding source to raise working capital, or to finance capital investments such as equipment, machinery, automation or vehicles.
- The term loan is the most common form of intermediate-term financing arranged by commercial banks.
- Maximum up to S$200,000 unsecured.
- With a small fixed deposit of S$10,000, the loan amount can be leveraged up to 3-5 times.
How it benefits you
- Through careful planning term loans help to make proper investments which generating fresh cash flows.
- These new cash flows help to self-finance the loan repayments.
- Finance major purchases or investments over the loan period.
- Depending on the lender, flexible repayment terms are possible. For example, repayment periods could be based on business cash flow cycle, e.g. monthly, quarterly, semi-annually or annually.
- Choice of either fixed or floating interest rates.
- Must be Singapore registered SME company
- At least 1 year in business, preferably 2 years
- Annual Turnover S$150K and more
- Minimum 30% shareholding by Singaporean or Singapore PR
Documents Required on Application
- A photocopies of your Directors’ or Owners’ NRIC (front and back).
- Your company’s bank statements for the past six months .
- Personal income tax assessment of owners and directors for the past 2 years.
- Annual Financial Report for the past 2 years.