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Short term business loans are ideal for SMEs that need quick access to funds for immediate operational needs—like covering payroll, purchasing inventory, or managing seasonal expenses.
Unlike long-term financing, these loans typically have a repayment period of 12 to 24 months, allowing businesses to maintain agility without long-term debt obligations. Our platform helps you compare and apply for short term business loans from multiple trusted lenders in one place. Whether you're bridging a cash flow gap or seizing a time-sensitive opportunity, we connect you with fast financing tailored to your short-term goals.
Looking to expand your operations, invest in equipment, or renovate your space? Our curated term loans for business are structured to support your long-term objectives.
With fixed repayment schedules and competitive interest rates, these loans provide predictability and control over your financial planning. Through our technology-enabled platform, we assess your unique business profile and match you with lenders who offer loan packages aligned with your growth timeline. Say goodbye to generic loan offers—our consultants ensure each solution is tailored to your strategic goals.
Many business owners overlook how important business loan repayment terms are when choosing financing. Should you go for daily, weekly, or monthly repayments?
What happens if you want to repay early? Our team breaks down the fine print so you understand exactly what you’re signing up for—before you commit. Through your dashboard, you can view and compare repayment structures from different lenders, including amortization schedules and early repayment policies. Transparency is key—so we make sure you know how your repayments impact your cash flow and long-term costs.
Not sure whether a business term loan or a line of credit is right for you? Each serves a different purpose. Term loans provide a lump sum upfront with a fixed repayment plan—ideal for planned investments. situation.
A line of credit, on the other hand, offers revolving access to funds that you draw on as needed—great for unpredictable cash flow needs. Our experts help you compare both options based on your current and future financial needs. With detailed comparisons and real-time insights on rates and terms, we ensure you choose the right financing product for your
| Lender | Annual Interest Rate | Processing Fee | Annual Fee | Monthly Repayment |
|---|---|---|---|---|
| Anext | 7% | 1% or S$200 whichever is higher | $0 | $2,970.18 |
| DBS | 6% | 1% | no | $2,899.92 |
| Maybank | 7% | 1-2% | $2,970.18 | |
| OCBC | 7.5 % | 1-2% | no | $3,005.69 |
| Orix | 8.5 % | 1-2% | no | $3,077.48 |
| Ethoz | 9 % | 1.25% | One time off $1,500 Commitement Fee | $3,113.75 |
| Funding Societies | 9.6 % | 7% | $3,157.61 | |
| SCB | 10.88 % | 1-3% | $288 | $3,252.39 |
* Rates Updated 14 Jul 2025 - Loan Amount Example S$150,000 In 5 Years
A business term loan is a structured financing solution that provides companies with a fixed amount of capital, repaid over a predetermined period with interest. It’s one of the most common forms of SME financing in Singapore, often used for funding expansion plans, asset purchases, or working capital requirements.
The core structure of a term loan involves fixed monthly repayments made over a specific loan tenure — typically ranging from 1 to 5 years, though some lenders may offer longer durations. These repayments include both principal and interest, allowing business owners to manage cash flow more predictably.
Depending on the lender and risk profile of the borrower, the loan may be either secured (backed by collateral like property or equipment) or unsecured (relying on the company’s financials and creditworthiness). Most SME-focused lenders, including banks and non-bank financial institutions, evaluate key metrics such as annual turnover, net profit margins, existing liabilities, and industry stability during their credit assessment process.
Unlike revolving credit facilities, which offer flexible drawdowns, a business term loan is disbursed as a lump sum, making it ideal for financing one-time, high-value investments. It also tends to carry lower interest rates compared to short-term loans or credit lines, especially for borrowers with strong financials.
Business term loans are a preferred choice for SMEs aiming to scale operations without diluting ownership or raising equity.
A business term loan operates on a simple and structured premise: a company borrows a fixed sum from a lender and repays it over a specified period — usually in monthly instalments — with interest. This financing option is especially popular among SMEs in Singapore that need capital for purposes such as equipment purchase, business expansion, payroll, or inventory procurement.
These loans come with either a fixed or variable interest rate, depending on the lender’s offering. Most business term loans are amortized, meaning the repayment schedule includes both the principal and interest, allowing businesses to plan ahead with predictable cash flow management.
How to Choose the Right Business Term Loan?
There is no one-size-fits-all when it comes to financing. Business owners must evaluate several factors before selecting a loan product:
Always match the loan quantum and tenure with your business cash flow cycle to avoid repayment difficulties.
Total Cost
The total cost of a business term loan includes all interest payments, administrative fees, and any other hidden costs charged by the lender. Calculating the effective interest rate (EIR) — not just the nominal or advertised rate — gives a more realistic picture of what you’ll actually pay.
Example: If you borrow S$100,000 over 3 years at a flat rate of 5%, your total interest is S$15,000. But once fees and compounding effects are factored in, your EIR may be closer to 9%–10% annually.
Monthly Repayments
Monthly instalments typically consist of a portion of the principal amount and interest. Some lenders may offer interest-only payments for the first few months (especially for start-ups), followed by full amortized repayments.
Before committing, calculate your Debt Service Coverage Ratio (DSCR) — a key metric used by lenders — to ensure your business generates enough cash flow to meet debt obligations.
Loan Balance
Your loan balance represents the remaining principal yet to be repaid. Keeping track of your balance helps you monitor how much interest you’re still incurring. Some lenders offer digital dashboards or automated loan management tools, making it easier for SMEs to stay on top of their loan status.
Types of Business Term Loans
Just like personal loans, business term loans come in different forms depending on your funding needs:
A business term loan is a fixed amount of capital borrowed by a business and repaid over a predetermined period with interest. It’s typically used for growth initiatives such as purchasing equipment, expanding operations, or improving cash flow.
Repayment terms vary by lender but usually range from 1 to 5 years. Some banks may offer up to 7 years, depending on your business profile, loan amount, and collateral provided.
Both options are available. Secured term loans require collateral such as property or inventory, often resulting in lower interest rates. Unsecured loans are available too, especially for SMEs with strong financials or government-backed guarantees, but they often come with higher interest rates.
Commonly required documents include:
– Business profile (ACRA)
– Bank statements (6–12 months)
– Profit & loss statements
– Balance sheets
– Income tax assessments
Some lenders may also require a business plan or cash flow projection.
Yes, but it’s more challenging. Most banks prefer businesses with at least 2 years of operating history and stable revenue. Startups may consider alternative lenders or government-backed financing schemes such as the Enterprise Financing Scheme (EFS).
Interest can be flat rate or reducing balance. Always check the Effective Interest Rate (EIR) for a true comparison of total borrowing costs across lenders.
Before applying for a business term loan, define clearly why you need funding. Is it for working capital, purchasing new equipment, hiring staff, or expanding your operations? Each purpose may require a different loan structure. Avoid taking on debt unless the expected return on investment (ROI) justifies the borrowing cost.
Most financial institutions in Singapore assess your creditworthiness based on key metrics such as:
– Annual revenue
– Profit margin
– Debt Service Coverage Ratio (DSCR)
– Business credit score
Prepare updated financial statements, bank statements, and cash flow projections before applying. The more robust your documentation, the higher your chance of loan approval — and potentially at a lower interest rate.
Don’t settle for the first offer you get. Always compare effective interest rates (EIR), loan tenures, repayment structures, and fees across various banks and alternative lenders. Platforms like Enterprise Singapore, Validus, and Funding Societies allow SMEs to access competitive loan options with varying approval times and eligibility criteria.
Be sure to read all loan agreements carefully. Key clauses to look out for include:
Unexpected costs can significantly increase your total repayment amount. If in doubt, consult a financial advisor or business loan consultant.
A strong business credit profile improves your odds of securing loans at favorable rates. Pay your existing debts on time, monitor your credit report regularly, and avoid maxing out credit lines. Good credit habits today will open up more financing opportunities in the future.
Once you receive the funds, apply them toward value-generating initiatives. Whether it’s increasing inventory turnover, launching a new product, or streamlining operations, ensure the capital enhances your business profitability and long-term sustainability.
Mastering your loan moves starts with understanding the real cost of borrowing. We believe in empowering you with the right knowledge to make smart financial choices, not quick fixes that lead to debt traps. Our commitment is helping you borrow wisely and stay in control of your money.
Read Our Borrowing Guide
.Don't be a fool! #roshi #singapore #lending #borrowing
Trust the original! #roshi #singapore #lending #borrowing
.Don't be a fool! #roshi #singapore #lending #borrowing
Trust the original! #roshi #singapore #lending #borrowing
.Don't be a fool! #roshi #singapore #lending #borrowing
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