Term Loans

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.

Eligibility Criteria

  • 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.