Unsecured business loans typically cost 7% to 11% EIR. Government backed schemes and secured loans offer lower rates. Digital lenders charge 9% to 15% for faster approval.
Business loans provide working capital, equipment financing and growth funding for companies registered in Singapore. These loans are offered by major banks, alternative lenders and through government backed schemes administered by Enterprise Singapore.
Most business loansare unsecured meaning no collateral is required with loan amounts typically ranging from $50,000 to $500,000 depending on the business's revenue, operating history and creditworthiness. This page explains the different types of business financing available, eligibility requirements, government support schemes like the Enterprise Financing Scheme (EFS) and how to compare options to find the most suitable loan for your business needs.
A business loan is financing provided to companies for operational needs, expansion, equipment purchase or cash flow management. Unlike personal loans taken by individuals, business loans are taken by companies, sole proprietorships, partnerships, LLPs or private limited companies registered with ACRA. The loan is assessed based on the company's financial health, revenue and profitability not just the owner's personal income.
Unsecured business loans typically cost 7% to 11% EIR. Government backed schemes and secured loans offer lower rates. Digital lenders charge 9% to 15% for faster approval.
Borrow $50,000 to $500,000 unsecured. Secured loans (equipment, property) can reach $30 million. Amount depends on revenue, profitability and existing debt.
Choose 1 to 5 years for most term loans and equipment financing up to 7 years. Property backed loans up to 15 years. Shorter tenure = lower total interest.
Enterprise Singapore's EFS provides 50% to 70% government risk sharing, improving approval chances and potentially lowering rates for eligible SMEs.
The biggest mistake SME owners make is defaulting to a term loan for every financing need. A $200,000 term loan over 5 years might seem straightforward but if you're bridging a 60 day invoice gap you'll pay years of interest for a short-term problem. On the other hand sing a credit line for equipment purchase means paying revolving rates when an asset backed loan at half the cost would suffice.
Before applying, calculate exactly what you need and ask yourself the following questions. Is this a one time capital injection or ongoing cash flow management? Will revenue from this investment repay the loan or is it an operational cost? How quickly will you recover the funds? The answers will point you to the right financing options such as term loan, working capital facility, invoice financing or equipment loan. The cheapest loan is the one that matches your actual cash flow cycle. 
Business Loan Eligibility
All lenders verified against Ministry of Law registry. Last updated: May 27 2026.
Different loan structures serve different business needs.
| Loan Type | Best For | Budget | Tenure | Interest Rate |
|---|---|---|---|---|
| Business Term Loan | General working capital, expansion | $50,000 to $700,000 | 1 to 5 years | 7% to 11% p.a. |
| Working Capital Loan | Daily operations, payroll, rent | Up to $500,000 | Up to 5 years | 6.8% to 10% p.a. |
| Trade Financing | Import/export, inventory | Up to $10 million | Revolving | 5% to 8% p.a. |
| Invoice Financing | B2B with long payment terms | Up to 80% of invoice | Short-term | 1% to 3% per invoice |
| Equipment Financing | Machinery, vehicles, technology | Up to $30 million | 1 to 7 years | 3% to 8% p.a. |
| Business Overdraft | Short-term cash flow gaps | Varies | Revolving | 7% to 12% p.a. |
| Bridging Loan | Urgent temporary financing | $50,000 to $5 million | 3 to 24 months | 12% to 24% p.a. |
| Micro Business Loan | Startups, small capital needs | Up to $100,000 | 1 to 3 years | 8% to 15% p.a. |
| Property Backed Business Loan | Large capital needs, lower rates | Up to $30 million | Up to 15 years | 4% to 7% p.a. |
| Revenue Based Financing | Businesses with predictable revenue | Based on monthly revenue | 6 to 18 months | Factor rate 1.1-1.5x |
Enterprise Singapore's Enterprise Financing Scheme (EFS)
improves loan access for eligible SMEs.
EFS enhancements took effect 1 April 2026 as announced in Budget 2026. 
Pro Tip: 
Aya Medel 
I used ROSHI platform to find the best loan offers. Just need to fill up some details and wait for loan offers and can choose which one you like. It is totally free and can receive vouchers and cashback based on the loan amount approved. Thank you ROSHI
Everlean I can’t thank Roshi enough for helping me find the best financial institution for my DCP! The guidance and support were absolutely amazing—everything was explained clearly and tailored to my needs. Thanks to Roshi’s help, I’m now on track and completely debt-free in just 12 months! 💪🏼 I couldn’t be happier with the outcome and highly recommend Roshi to anyone looking for smart, reliable financial advice.
Mohamed Faizal Jaafar With the help of the ROSHI Support link to partner, I had a great experience with EZY Loan. The online application was simple, document verification was fast, and the funds were credited on the same day. The staff were professional and explained everything clearly, with no hidden fees. Overall, an excellent and hassle-free service!
Sabby Debbie Roshi service will update all your listings to match your nearest requested amount accurately, saving you time and effort by eliminating the need to visit each location individually. Recommended !
While credit card promotions can be very attractive, knowing how to manage credit card bills is crucial. Singapore banks like DBS, UOB, and OCBC offer various payment methods for quick payments. Use options across major Singapore banks, from online banking in the comfort of your home to physical AXS machines or simply setting up auto deductions through GIRO.
Starting a business in Singapore? Securing the right startup loan can be the spark that turns your concept into a sustainable company.
Business term loans in Singapore present a stable financing option with predictable monthly payments and competitive interest rates.
Need extra capital to manage your daily business operations? Working capital loans from Singapore’s leading banks provide a structured and low‑risk solution designed specifically for small and medium‑sized enterprises (SMEs).
Business loans cover general funding needs but depending on your business situation specialised financing options may be more suitable. For short term cash flow gaps, working capital loans provide operational funding with government support through the EFS scheme. Bridging loans offer temporary financing for urgent needs while awaiting receivables or longer term arrangements.
For businesses needing to unlock cash tied up in receivables, invoice financing and purchase order financing provide immediate funds without term debt. Businesses with predictable monthly revenue can consider revenue based financing while payroll financing helps cover staff costs during cash flow gaps. Companies purchasing equipment or vehicles can explore equipment financing for lower rates secured against assets.
For startups with limited operating history, business loans for startups and micro business loans offer more accessible options with lower thresholds. Businesses with property assets can access property-backed business loans for larger amounts at lower rates.
For bank specific business loans, reviews can be compared across DBS, OCBC, SCB, Maybank, ANEXT Bank and Funding Societies.
