ORIX Working Capital Loan Review ᐈ Check Rates

Launch Application

Content Overview

Annual Interest Rate

$500,000.00

Max Loan Amount

1-2%

Processing Fee

Loan Amount (S$)

Tenure (Months)

Monthly Repayment aaa

Current ORIX Working Capital Loan Rate

Today's working capital loan interest rate trends for ORIX - As of Friday, February 27th, 2026, the lowest working capital loan interest rate ORIX charges stands at 7%. Rates are not guaranteed and are based on each applicant's own credit risk.

Product Review

ORIX Leasing’s working capital loan offers a strategic financing solution tailored for SMEs in Singapore seeking to stabilize cash flow, fund daily operations, or support short-term expansion. As a subsidiary of the globally recognized ORIX Corporation, ORIX Leasing leverages its financial strength to deliver practical lending options to local businesses.

With a competitive annual interest rate of 7% and no annual fees, this loan is positioned to assist businesses with flexible access to capital without hidden long-term costs. The maximum loan amount of S$300,000 and a tenure of up to 4 years provide a healthy balance between repayment flexibility and financing capacity.

How much do you want to borrow?

$50,000

$500,000

Over what period would you like to pay?

1 Month

60 Months

Your monthly payment

337

Rate Disclaimer*

*Based on a $20,000 loan at 6.95% APR over 5 years, read more

Importantly, ORIX Leasing imposes no minimum application requirements, making the loan more accessible to a wider range of SMEs. However, applicants must meet basic criteria such as having a minimum turnover of S$750,000 and at least 2 years of incorporation to ensure repayment credibility.

This product is especially suitable for growth-oriented businesses that value financial predictability and are looking for medium-term capital without the burden of complex fee structures.

Key Factors

Competitive Interest Rate
ORIX Leasing offers a flat annual interest rate of 7%, providing cost predictability for businesses seeking stable financing. This rate is fixed, helping SMEs plan cash flow without worrying about fluctuating borrowing costs.

Accessible Capital Size
The maximum loan amount of S$300,000 is structured to support a wide range of business needs such as purchasing inventory, bridging receivables or scaling operations during growth phases.

Flexible Repayment Tenure
Borrowers can select a repayment period of up to 4 years, aligning repayment schedules with their business cycles. This mid-term option ensures flexibility while keeping interest costs under control.

No Annual Fees
Unlike many traditional financing products, ORIX Leasing’s loan has no annual maintenance fees. This reduces the overall cost of borrowing and simplifies financial forecasting for small and mid-sized businesses.

ORIX Leasing Fees

Processing Fee – 2% of Approved Loan
ORIX Leasing charges a one-time processing fee of 2% of the approved loan amount. This fee is deducted upfront and applies regardless of the loan size. For example, a loan of S$100,000 would incur a processing fee of S$2,000.
Penalty Fee – For Early Repayment or Breach of Terms
Due to the 4-year lock-in period, early full or partial repayment before maturity may result in a penalty fee. The exact amount depends on the repayment timing and remaining loan balance and is subject to ORIX Leasing’s internal terms and approval.
No Annual or Maintenance Fees
Borrowers are not required to pay any recurring annual fees. This makes ORIX’s working capital loan more transparent and cost-efficient over its full tenure.
Other Charges – Case-by-Case Basis
Any additional fees, such as administrative costs for document reissuance or amendments to loan structure, are reviewed and charged on a case-by-case basis, depending on borrower requests and approval by ORIX.

Overview of Interest Rates

Business Term
Bridging Loan
Working Capital
P2P Lending
Property Equity
B2B

Lender	Annual Interest Rate	Processing Fee	Annual Fee	Monthly Repayment
Anext	7%-10%	1% or S$200	No	$2,970.18
DBS	7%	1%	No	$2,970.18
Maybank	7%-10%	1-2%	No	$2,970.18
OCBC	7%	1-2%	No	$2,970.18
Orix	8.5 %	1-2%	No	$3,077.48
Ethoz	7-10%	1.25%	One time off $1,500 Commitement Fee	$2,970.18
Funding Societies	9.6 %	4%	No	$3,157.61
SCB	9.00 %	1-3%	$288	$3,113.75

Lender	Annual Interest Rate	Processing Fee	Annual Fee	Monthly Repayment
DBS	4.75 %	1-1.5%	No	$2,813.54
OCBC	5%	1-2%	No	$2,830.69
Maybank	5%	1.5-2%	No	$2,830.69
Singapura	5 %	1-2%	No	$2,830.69
Orix	5 %	1-2%	No	$2,830.69
SCB	5.5 %	1.5%	No	$2,865.17
RHB	5.5 %	1-2%	$288	$2,865.17
Ethoz	5.5 %	1.5%	One time off $1,500 Commitment Fee	$2,865.17
CIMB	5.5 %	1.8%	No	$2,865.17
Hong Leong	5.5 %	1-2%	No	$2,865.17

Lender	Annual Interest Rate	Processing Fee	Annual Fee	Monthly Repayment
DBS	7.75 %	1.5%	No	$3,023.54
OCBC	6.5 %	1-2%	No	$2,934.92
CIMB	6.5 %	1-2%	No	$2,934.92
RHB	7 %	1-2%	No	$2,970.18
SCB	7 %	1-2%	No	$2,970.18
ORIX	7 %	1-2%	No	$2,970.18
Maybank	7.88 %	1-2%	No	$3,032.85
ETHOZ	9.75 %	1.50%	No	$3,168.64
Funding Societies	12 %	7%	No	$3,336.67

Lender	Annual Interest Rate	Processing Fee	Annual Fee	Monthly Repayment
Validus	1.3 %	2.5-5%	No	$2,583.48
Funding Societies	1.65 %	3-8%	No	$2,606.26

Lender	Annual Interest Rate	Processing Fee	Annual Fee	Monthly Repayment
ORIX	4.5 %	1%	No	$2,796.45
OxProp Capital	7 %	1-3%	No	$2,970.18
Value Max	8.4 %	1%	No	$3,070.26

Lender	Annual Interest Rate	Processing Fee	Annual Fee	Monthly Repayment
Capitall	3 %	2-5%	No	$2,695.30
Reachout	5 %	3-6%	No	$2,830.69

* Rates Updated 27 Feb 2026 - Loan Amount Example S$150,000 In 5 Years

Eligibility for ORIX Leasing Working Capital Loan

Minimum Years of Incorporation
Only companies incorporated for at least 2 years are eligible. This ensures that applicants have a proven business track record and operational history.
Minimum Annual Turnover
Firms must report a minimum turnover of S$750,000 to be considered. This threshold reflects the lender’s requirement for financial sustainability and adequate revenue flow.
Business Entity Type
The loan is available to registered businesses operating in Singapore, including private limited companies, partnerships and sole proprietors, provided they meet the incorporation and turnover conditions.
No Minimum Loan Requirement
There is no minimum loan amount required for application, making this facility accessible to businesses with varying levels of capital needs.
Document Requirements
Applicants will need to provide incorporation documents, financial statements and bank records to support their application. These documents help ORIX assess business health and loan suitability.

PROMOTIONS

APPLICATION PROCESS

Apply via ROSHI
Start your application directly through ROSHI’s marketplace. Simply select ORIX Leasing’s working capital loan from the business loan options and proceed with the online form submission.
Submit Business Documentation
To evaluate your application, ORIX requires standard business documentation. These typically include:
– ACRA business profile
– Latest 6 months’ bank statements
– Latest 2 years’ financial statements
– NRIC copies of company directors
– Loan application form (provided during the process)
These documents allow ORIX to assess your company’s cash flow, operational history and creditworthiness.
Initial Assessment and Approval Timeline
Once submitted, applications are reviewed internally. If all required documents are in place and eligibility is met, preliminary approval may be granted within 5–7 business days. Final approval timing depends on verification and underwriting outcomes.
Signing and Disbursement
After final approval, you will be scheduled for a signing appointment. The loan amount (up to S$300,000) will be disbursed directly into your company’s designated bank account, usually within a few business days post-signing.
Note on Lock-In Commitment
Approved loans are subject to a 4-year lock-in period. Early repayment requests during this time must be discussed with ORIX and may trigger penalty fees.

HIGHLIGHTS

No Annual Fee
Borrowers benefit from a clear cost structure with no recurring annual fees, reducing total cost of borrowing over time.
High Loan Ceiling
Loan amounts of up to S$300,000 offer businesses substantial working capital support for operational and growth needs.
Fixed Interest Rate
The 7% fixed annual interest rate ensures predictability and stability for financial planning throughout the loan tenure.
No Minimum Loan Requirement
Businesses can apply for smaller amounts without restriction, making the loan accessible for varying capital needs.
4-Year Lock-In Period
Early repayment before the end of the 4-year tenure may incur penalty fees, limiting flexibility for businesses wanting to repay early.
Strict Eligibility Criteria
Minimum turnover of S$750,000 and 2 years of incorporation may exclude startups and smaller-scale enterprises.

Frequently Asked Questions

What is the interest rate for the ORIX Leasing Working Capital Loan?

The loan carries a fixed annual interest rate of 7%, providing predictability in financing costs over the loan term.

Are there any processing or hidden fees?

Yes, there is a one-time processing fee of 2% of the approved loan amount. There are no annual maintenance fees, but penalty charges may apply for early repayment during the 4-year lock-in period.

How much can I borrow under this loan?

You can apply for up to S$300,000, depending on your business's financial profile and credit assessment.

What are the eligibility requirements?

Your business must have a minimum annual turnover of S$750,000 and be incorporated for at least 2 years in Singapore. Required documents include ACRA profile, financial statements and bank statements.

Is there a lock-in period for this loan?

Yes, the loan has a lock-in period of 4 years. Early repayment before the term ends may result in penalty charges.

Accounts Receivable Financing

A type of financing where businesses use their outstanding invoices as collateral to obtain funds. The lender advances a percentage of the invoice value (typically 70-90%) and collects payment directly from the debtor. This helps businesses improve cash flow without waiting for customers to pay. Also known as invoice financing or factoring.

Amortisation

The process of spreading loan repayments over time through regular scheduled payments. Each payment includes both principal and interest components. In the early stages, a larger portion goes toward interest, while later payments contribute more to reducing the principal. Business loans in Singapore typically follow an amortising structure.

Annual Revenue Requirement

The minimum yearly turnover a business must demonstrate to qualify for certain loan products. Banks and financial institutions in Singapore often require SMEs to show annual revenues of $100,000 to $500,000 or more depending on the loan type. This helps lenders assess the business's ability to service the debt.

Asset Based Lending (ABL)

A form of business financing where loans are secured against company assets such as inventory, equipment, accounts receivable or property. The loan amount is typically a percentage of the asset's value. ABL is useful for businesses with significant assets but irregular cash flows. In Singapore, banks and finance companies offer various ABL products.

Borrower

The individual or business entity that receives funds from a lender under a loan agreement. The borrower is legally obligated to repay the principal amount plus interest according to the agreed terms. For business loans, the borrower is typically the registered company, though directors may provide personal guarantees.

Bridging Loan

A short term financing solution designed to bridge temporary cash flow gaps. In a business context, bridging loans help companies cover expenses while waiting for longer term financing, sale proceeds or expected receivables. These loans typically have higher interest rates and shorter tenures of 3 to 12 months. Common uses include property purchases, project financing and working capital gaps.

Business Credit Score

A numerical rating that represents a company's creditworthiness based on its financial history, payment patterns and other factors. In Singapore, credit bureaus like Credit Bureau Singapore (CBS) and Experian maintain business credit records. A strong credit score improves access to financing and may result in better interest rates.

Business Term Loan

A lump sum loan provided to businesses for a fixed period with regular repayment schedules. Term loans can be used for various purposes including expansion, equipment purchase or working capital. In Singapore, term loans typically range from 1 to 7 years with fixed or floating interest rates. They may be secured or unsecured depending on the loan amount and borrower's profile.

Cashflow Based Lending

A lending approach where loan approval and amount are primarily based on a business's cash flow rather than collateral or assets. Lenders analyse bank statements, revenue patterns and financial projections to assess repayment capacity. This approach benefits service businesses and companies with limited physical assets.

Collateral

Assets pledged by a borrower to secure a loan. If the borrower defaults, the lender can seize the collateral to recover the outstanding debt. Common forms of business loan collateral include commercial property, equipment, inventory and accounts receivable. Secured loans typically offer lower interest rates due to reduced lender risk.

Commercial Property Loan

Financing specifically for purchasing, constructing or refinancing commercial real estate such as offices, retail spaces, warehouses or industrial buildings. In Singapore, commercial property loans typically offer LTV ratios of 70-80% with tenures up to 25-30 years. Interest rates may be fixed or floating based on SORA or bank board rates.

Commitment Fee

A fee charged by lenders on the unused portion of a credit facility. This compensates the lender for keeping funds available for the borrower to draw upon. Commitment fees are common in revolving credit facilities and lines of credit, typically ranging from 0.25% to 1% per annum of the undrawn amount.

Credit Bureau Singapore (CBS)

An organisation that collects and maintains credit information on individuals and businesses in Singapore. CBS provides credit reports and scores that lenders use to assess creditworthiness. Business owners should regularly check their CBS reports for accuracy, as errors can affect loan applications.

Credit Facility

A pre approved borrowing limit extended by a financial institution to a business. Credit facilities can take various forms including term loans, overdrafts, trade financing and letters of credit. Once approved, businesses can draw funds as needed up to the approved limit, subject to the facility's terms and conditions.

Debt Service Coverage Ratio (DSCR)

A financial metric that measures a business's ability to service its debt obligations. DSCR is calculated by dividing net operating income by total debt service (principal and interest payments). A DSCR of 1.25 or higher is typically required by Singapore lenders, meaning the business generates 25% more income than needed to cover debt payments.

Debt-to-Equity Ratio

A financial ratio comparing a company's total debt to shareholders' equity. It indicates the proportion of financing from creditors versus owners. Singapore lenders use this ratio to assess financial leverage and risk. A lower ratio suggests less reliance on borrowed funds, which is generally viewed favourably by lenders.

Default

Failure to meet the legal obligations of a loan agreement, typically by missing scheduled repayments or breaching loan covenants. Defaulting on a business loan can result in penalty charges, acceleration of the entire loan amount, seizure of collateral and legal action. It also negatively impacts the business's credit rating.

Disbursement

The release of loan funds from the lender to the borrower. For business loans, disbursement may occur as a lump sum or in tranches depending on the loan type and purpose. Some loans require fulfilment of conditions precedent before disbursement, such as submission of documents or completion of security registration.

Draw Down

The act of accessing funds from an approved credit facility. For revolving facilities, businesses can draw down funds as needed up to their credit limit. Each draw down may be subject to notice requirements and minimum amounts. Interest is typically charged only on the drawn amount.

Early Repayment Penalty

A fee charged when a borrower pays off a loan before its scheduled maturity date. This compensates lenders for lost interest income. In Singapore, early repayment penalties typically range from 1% to 3% of the outstanding principal. Some loan products allow partial prepayments without penalty up to certain limits.

Effective Interest Rate (EIR)

The actual annual cost of borrowing that accounts for compounding and fees. The EIR provides a more accurate picture of borrowing costs than the nominal interest rate. Singapore lenders are required to disclose the EIR to borrowers, enabling better comparison between loan products from different institutions.

Enterprise Financing Scheme (EFS)

A Singapore government initiative administered by Enterprise Singapore that helps local SMEs access financing. The scheme includes various components such as the SME Working Capital Loan, Trade Loan and Project Loan, with the government sharing loan default risk with participating financial institutions. This enables SMEs to obtain loans with more favourable terms.

Enterprise Singapore

A statutory board under the Ministry of Trade and Industry that supports Singapore enterprise development. Enterprise Singapore administers various financing schemes and grants for SMEs, provides business advisory services and helps companies internationalise. They work with financial institutions to improve SME access to financing.

Equipment Financing

Loans or leases specifically for purchasing business equipment, machinery or vehicles. The equipment itself typically serves as collateral. In Singapore, equipment financing options include hire purchase, finance leases and equipment loans. Terms usually match the useful life of the equipment, ranging from 1 to 7 years.

Equity Injection

Capital contributed by business owners or investors in exchange for ownership shares. Lenders often require borrowers to make equity contributions alongside debt financing, particularly for large projects or acquisitions. This demonstrates owner commitment and reduces lender risk by ensuring the borrower has capital at stake.

Facility Agreement

The legal contract between a lender and borrower that sets out all terms and conditions of a credit facility. It includes details such as loan amount, interest rate, repayment schedule, covenants, events of default and security requirements. Businesses should review facility agreements carefully, ideally with legal counsel, before signing.

Factoring

A form of accounts receivable financing where businesses sell their invoices to a third party (factor) at a discount. The factor advances typically 70-90% of the invoice value immediately and pays the remainder (minus fees) when the customer pays. Factoring can be with recourse (seller liable for non payment) or without recourse (factor assumes credit risk).

Finance Company

A financial institution licensed by MAS to provide loans and other financing services but cannot accept deposits like banks. Finance companies in Singapore, such as Singapura Finance and Hong Leong Finance, often serve SMEs and may offer more flexible lending criteria than banks. They are subject to MAS regulations.

Financial Covenants

Conditions in loan agreements that require borrowers to maintain certain financial ratios or metrics. Common covenants include minimum DSCR, maximum debt-to-equity ratio and minimum net worth requirements. Breaching covenants can trigger default provisions even if loan payments are current.

Fixed Interest Rate

An interest rate that remains constant throughout the loan tenure or a specified period. Fixed rates provide certainty in repayment amounts, making budgeting easier. However, fixed rates are typically higher than initial floating rates and may include prepayment penalties. In Singapore, fixed rate business loans commonly have lock-in periods of 1 to 3 years.

Floating Interest Rate

An interest rate that fluctuates based on a reference rate such as SORA or the bank's internal board rate. Floating rates typically start lower than fixed rates but carry the risk of increases. Monthly repayments may vary as rates change. Businesses with strong cash flows may prefer floating rates to benefit from potential rate decreases.

Gearing Ratio

A measure of a company's financial leverage, typically calculated as total debt divided by total capital (debt plus equity). Lenders use gearing ratios to assess risk, with higher ratios indicating greater reliance on debt financing. Singapore banks generally prefer gearing ratios below 2:1 or 3:1 for SME lending.

Government Assisted Financing

Loan schemes where the Singapore government shares risk with financial institutions to improve SME access to credit. Key schemes include Enterprise Financing Scheme (EFS), Temporary Bridging Loan Programme (TBLP) and various sector specific initiatives. These schemes often offer higher loan quantums, longer tenures or lower interest rates than commercial loans.

Grace Period

A specified period at the beginning of a loan during which the borrower is not required to make principal repayments. Interest may still accrue and be payable during this time. Grace periods, typically 3 to 12 months, are common in project financing and help businesses that need time before generating revenue.

Guarantee

A legally binding commitment by a third party to repay a loan if the primary borrower defaults. Personal guarantees from company directors are commonly required for SME loans in Singapore. Corporate guarantees may be provided by parent companies or related entities. Guarantors are fully liable for the debt if the borrower fails to pay.

Hire Purchase

A financing arrangement for acquiring assets where the buyer makes an initial deposit followed by instalments over time. Ownership transfers to the buyer only after all payments are completed. In Singapore, hire purchase is commonly used for vehicles and equipment. It differs from leasing in that ownership eventually passes to the hirer.

In-Principle Approval (IPA)

A preliminary indication from a lender of the loan amount and terms a business may qualify for, subject to verification and final approval. IPAs help businesses plan financing before committing to transactions. They are typically valid for 30 to 90 days and are conditional on satisfactory due diligence and documentation.

Interest Rate Cap

A ceiling on the interest rate that can be charged on a loan. While MAS does not cap interest rates for business loans from banks and finance companies, loans from licensed moneylenders are subject to caps under the Moneylenders Act. Some loan agreements may include contractual caps to protect borrowers from excessive rate increases.

Invoice Financing

A funding solution that allows businesses to borrow against their outstanding invoices to improve cash flow. The lender advances a percentage of invoice values and the business repays when customers pay. Invoice financing includes factoring and invoice discounting. It's particularly useful for B2B businesses with payment terms of 30-90 days.

Joint and Several Liability

A legal concept where multiple borrowers or guarantors are each individually responsible for the entire debt, not just a portion. The lender can pursue any one party for the full amount owed. This is common in partnership loans and loans with multiple guarantors in Singapore.

Letter of Credit (LC)

A payment guarantee issued by a bank on behalf of a buyer, assuring the seller of payment upon fulfilment of specified conditions. LCs are widely used in international trade to reduce payment risk. Singapore, as a major trading hub, sees significant LC activity. Types include sight LC, usance LC and standby LC.

Letter of Offer

A formal document from a lender to a borrower stating the approved loan amount and terms. The letter of offer includes interest rate, tenure, fees, security requirements and conditions. Borrowers must sign and return the letter to accept the loan. Terms are only binding once the offer is accepted and conditions are fulfilled.

Licensed Moneylender

A moneylending business that holds a valid licence from Singapore's Ministry of Law (MinLaw) under the Moneylenders Act. Licensed moneylenders can provide business loans and are subject to regulations on interest rates and fees. They differ from banks and are typically used when traditional financing is unavailable. Always verify a lender's licence status through the Registry of Moneylenders.

Line of Credit

A flexible credit facility that allows businesses to borrow up to a pre approved limit as needed. Unlike term loans, funds can be drawn, repaid and redrawn. Interest is charged only on the amount utilised. Lines of credit are useful for managing cash flow fluctuations and unexpected expenses. They may be secured or unsecured.

Loan Principal

The original amount borrowed, excluding interest and fees. As repayments are made, the principal decreases. Interest is typically calculated on the outstanding principal balance. Understanding the principal helps businesses track their actual debt obligation versus total repayment amount.

Loan Tenure

The period over which a loan must be repaid. Business loan tenures in Singapore vary widely: working capital loans may be 1-5 years, term loans 3-7 years and commercial property loans up to 25-30 years. Longer tenures reduce monthly payments but increase total interest paid.

Loan-to-Value (LTV) Ratio

The ratio of a loan amount to the value of the asset being financed. For secured business loans, LTV determines how much can be borrowed against collateral. Singapore banks typically offer 70-80% LTV for commercial property and 80-90% for equipment financing. Higher LTV means larger loans but also greater lender risk.

Lock-in Period

A specified period during which a borrower cannot refinance or fully repay a loan without incurring penalties. Lock-in periods typically range from 1 to 3 years for business loans. Early repayment penalties during this period can be 1-3% of the outstanding amount. Businesses should consider lock-in periods when comparing loan options.

MAS (Monetary Authority of Singapore)

Singapore's central bank and integrated financial regulator. MAS supervises banks, finance companies and other financial institutions. It sets prudential requirements that affect business lending, including capital adequacy rules and lending guidelines. MAS also implements monetary policy that influences interest rates.

Mezzanine Financing

A hybrid form of financing that combines debt and equity features. Mezzanine debt is subordinated to senior debt but ranks above equity. It often includes equity participation through warrants or conversion rights. Mezzanine financing is used for expansion, acquisitions or buyouts when senior debt alone is insufficient.

Minimum Commitment

The minimum amount a borrower must draw from a credit facility or the minimum period for which funds must be borrowed. Some facilities require businesses to maintain minimum utilisation levels. Failure to meet minimum commitments may result in fees or facility cancellation.

Moratorium

A temporary suspension of loan repayment obligations. Moratoriums may be granted during economic crises, natural disasters or specific borrower hardships. During COVID-19, Singapore banks offered moratoriums to affected SMEs. Interest typically continues to accrue during the moratorium period.

Negative Pledge

A loan covenant where the borrower agrees not to create security over its assets in favour of other lenders without the existing lender's consent. This protects unsecured lenders by preventing borrowers from prioritising new creditors. Negative pledges are common in facility agreements.

Net Worth

The value of a business's total assets minus total liabilities, representing the owners' equity. Lenders assess net worth to gauge financial strength and the owners' stake in the business. Minimum net worth requirements are common in loan eligibility criteria.

Non Performing Loan (NPL)

A loan where the borrower has failed to make scheduled payments for a specified period, typically 90 days. NPLs are classified as impaired assets on lenders' books and require provisioning. Businesses with NPL history face difficulty obtaining new financing.

Operating Lease

A lease arrangement where the lessee uses an asset for a portion of its useful life without ownership transfer. The lessor retains ownership and associated risks. Operating leases keep assets and liabilities off the balance sheet, though accounting standards have changed this treatment. They're suitable for assets that become obsolete quickly.

Overdraft Facility

A credit arrangement allowing businesses to withdraw more than their account balance up to an approved limit. Interest is charged only on the overdrawn amount. Overdrafts provide flexible short term financing for cash flow management. They are typically renewable annually and may be secured or unsecured.

P2P Lending (Peer-to-Peer Lending)

A form of financing that connects borrowers directly with investors through online platforms, bypassing traditional financial institutions. In Singapore, P2P lending platforms like Funding Societies and Validus are licensed by MAS. They offer SMEs an alternative funding source, often with faster approval processes than banks.

Pari Passu

A Latin term meaning 'on equal footing', used in loan agreements to indicate that multiple creditors have equal ranking in claims against the borrower's assets. In the event of default, pari passu creditors share recoveries proportionally rather than in order of priority.

Personal Guarantee

A commitment by an individual (typically a company director or shareholder) to personally repay a business loan if the company defaults. Personal guarantees are commonly required for SME loans in Singapore, making the guarantor's personal assets liable for the company's debt. This provides additional security for lenders.

Processing Fee

An administrative charge for evaluating and processing a loan application. Processing fees in Singapore typically range from 0.5% to 2% of the loan amount. Some lenders waive or reduce fees for preferred customers or during promotional periods. The fee may be deducted from the loan disbursement or paid separately.

Project Financing

Financing for specific projects where repayment comes primarily from the project's cash flows rather than the borrower's general assets. The project assets serve as collateral. Project financing is used for large infrastructure, property development or capital intensive ventures. It involves detailed feasibility analysis and often multiple lenders.

Property Backed Business Loan

A business loan secured against commercial or residential property. Using property as collateral typically enables higher loan amounts, longer tenures and lower interest rates. In Singapore, LTV ratios for property backed business loans range from 60% to 80% depending on the property type and lender. Borrowers risk losing the property if they default.

Recourse

The lender's right to claim additional assets from the borrower beyond the collateral if the collateral value is insufficient to cover the debt. Full recourse loans allow lenders to pursue all borrower assets. Limited recourse or non recourse loans restrict recovery to specified collateral only.

Refinancing

Replacing an existing loan with a new loan, typically to obtain better terms, consolidate debt or access additional funds. Businesses refinance to take advantage of lower interest rates or improved financial standing. Refinancing costs include processing fees, legal fees and potential early repayment penalties on the existing loan.

Revolving Credit Facility

A flexible credit arrangement that allows businesses to borrow, repay and reborrow up to an approved limit. Unlike term loans, the facility remains available for reuse throughout its tenure. Interest is charged only on the utilised amount. Revolving facilities are ideal for managing variable working capital needs.

Risk Participation

An arrangement where the government or another party shares the default risk with the lending institution. Under Enterprise Singapore's financing schemes, the government absorbs a portion of loan losses, encouraging banks to lend to SMEs that might otherwise not qualify. This reduces lender risk without directly guaranteeing loans.

Secured Loan

A loan backed by collateral that the lender can seize if the borrower defaults. Common business loan collateral includes property, equipment, inventory and receivables. Secured loans typically offer lower interest rates and higher loan amounts than unsecured loans due to reduced lender risk.

Security

Assets or guarantees provided by a borrower to protect the lender against default. Security can include fixed charges over specific assets, floating charges over changing assets like inventory, personal guarantees and corporate guarantees. The type and value of security affect loan approval and pricing.

Singapore Overnight Rate Average (SORA)

The benchmark interest rate for Singapore dollar transactions, calculated based on actual overnight interbank borrowing transactions. SORA has replaced SIBOR and SOR as the primary reference rate for loans in Singapore. Business loans pegged to SORA fluctuate with market rates, with lenders adding a spread to determine the final rate.

SME (Small and Medium Enterprise)

A business classification based on company size. In Singapore, SMEs are defined as companies with annual sales turnover of not more than $100 million or employment size of not more than 200 workers. SMEs form 99% of Singapore's enterprises and have access to various government support schemes and financing programmes.

SME Working Capital Loan

A loan programme under Enterprise Singapore's Enterprise Financing Scheme that provides working capital to Singapore SMEs. The government shares default risk with participating lenders, enabling SMEs to borrow up to $500,000 with maximum tenure of 5 years. This scheme supports SMEs' daily operational funding needs.

Spread

The margin added to a reference rate to determine the loan interest rate. For SORA linked loans, the spread represents the lender's profit margin and risk premium. For example, SORA + 2.5% means the reference rate plus a 2.5% spread. Spreads vary based on the borrower's credit profile and loan characteristics.

Subordinated Debt

Debt that ranks below other loans in terms of claims on assets or earnings. In the event of default or liquidation, subordinated debt holders are paid only after senior creditors. Due to higher risk, subordinated debt carries higher interest rates. It is sometimes used to meet regulatory capital requirements.

Temporary Bridging Loan Programme (TBLP)

A government assisted loan scheme introduced during COVID-19 to help Singapore SMEs access working capital. The scheme provided 70% government risk share for loans up to $5 million with a maximum interest rate of 5% per annum. While introduced as a temporary measure, it demonstrated government support for SME financing during crises.

Term Sheet

A preliminary document outlining the key terms and conditions of a proposed loan before detailed documentation is prepared. Term sheets are typically non binding and serve as a basis for negotiation. They include loan amount, interest rate, tenure, security and major covenants. Final terms may differ in the facility agreement.

Trade Financing

Financial products that facilitate domestic and international trade transactions. Trade financing includes letters of credit, trust receipts, banker's acceptances and invoice financing. These products help businesses manage cash flow gaps between purchasing goods and receiving payment from customers. Singapore's trade financing sector is well developed given the country's role as a trading hub.

Trust Receipt

A short term financing arrangement where a bank pays for imported goods on behalf of the importer, who holds the goods in trust for the bank until sale. The importer must repay the bank upon selling the goods. Trust receipts are commonly used to finance inventory purchases, typically with tenures of 90-180 days.

Unsecured Loan

A loan granted without requiring collateral. Approval is based on the borrower's creditworthiness, financial strength and cash flow. Unsecured business loans typically have lower amounts, shorter tenures and higher interest rates than secured loans. They are suitable for businesses without significant assets to pledge.

Variable Interest Rate

An interest rate that can change over the loan tenure based on market conditions or lender policy. Variable rates may be pegged to SORA, bank board rates or other benchmarks. While potentially offering lower initial rates, they carry the risk of increases. Businesses should assess their capacity to handle rate fluctuations.

Venture Debt

A type of debt financing for venture backed startups and growth companies. Venture debt complements equity financing by providing capital without significant ownership dilution. It typically includes warrants giving lenders the right to purchase equity. Venture debt providers in Singapore include banks and specialised funds.

Working Capital

The funds available for a business's day to day operations, calculated as current assets minus current liabilities. Adequate working capital ensures a company can meet short term obligations and fund operational expenses. Working capital loans help businesses cover payroll, inventory, rent and other regular costs while awaiting receivables.

Working Capital Loan

Short to medium term financing designed to fund daily business operations rather than long term assets. Working capital loans help businesses manage cash flow cycles, seasonal fluctuations and growth requirements. In Singapore, tenures typically range from 1 to 5 years with loan amounts based on the business's revenue and cash flow.

Disclaimer

This glossary is provided for informational purposes only and does not constitute financial, legal or professional advice. While every effort has been made to ensure accuracy, regulations, rates and requirements may change. The terms and definitions provided are general explanations and may vary between financial institutions.

For the most current information on business financing regulations and requirements in Singapore, please refer to the Monetary Authority of Singapore (MAS), Enterprise Singapore and Ministry of Law official websites. Always consult qualified professionals before making financing decisions.

Interest rate caps, government scheme parameters and other regulatory requirements mentioned are accurate as of the publication date but are subject to change by the relevant authorities.

ORIX Working Capital Loan
(Product review)

Fact-checked

Glossary

Disclosure

Useful Resources

Fact-checked

Disclosure

Glossary

Useful Resources

Popular Working Capital Loans

$288.67 Monthly repayment shown uses an indicative rate of 8% per year. Depending on your lender, actual rates may range from 6-15% per year.

Current ORIX Working Capital Loan Rate

Product Review

Your monthly payment

Eligibility for ORIX Leasing Working Capital Loan

PROMOTIONS

APPLICATION PROCESS

HIGHLIGHTS

Frequently Asked Questions

What is the interest rate for the ORIX Leasing Working Capital Loan?

Are there any processing or hidden fees?

How much can I borrow under this loan?

What are the eligibility requirements?

Is there a lock-in period for this loan?

ORIX Working Capital Loan(Product review)

Fact-checked

Glossary

Disclosure

Useful Resources

Fact-checked

Disclosure

Glossary

Useful Resources

Popular Working Capital Loans

$288.67 Monthly repayment shown uses an indicative rate of 8% per year. Depending on your lender, actual rates may range from 6-15% per year.

Current ORIX Working Capital Loan Rate

Product Review

Your monthly payment

Eligibility for ORIX Leasing Working Capital Loan

PROMOTIONS

APPLICATION PROCESS

HIGHLIGHTS

Frequently Asked Questions

What is the interest rate for the ORIX Leasing Working Capital Loan?

Are there any processing or hidden fees?

How much can I borrow under this loan?

What are the eligibility requirements?

Is there a lock-in period for this loan?

ORIX Working Capital Loan
(Product review)