Startup Business Loans in Singapore: 7 Expert-Recommended Financing Options In 2025
By
Dawn Chew
|
Updated 24 Dec 2025
At a Glance
Starting a business in Singapore? Securing the right startup loan can be the spark that turns your concept into a sustainable company. Whether you are launching an e-commerce brand, developing a fintech platform or building an integrated logistics solution, early-stage financing often provides the essential capital to scale operations. Fortunately, Singapore’s dynamic financial ecosystem offers a wide range of startup-friendly funding options, from bank term loans and government-assisted schemes to digital SME financing platforms.
This guide explores five of the most effective business loan options available to startup founders, each designed to balance accessibility, affordability and flexibility. From low-interest peer-to-peer (P2P) lending platforms to streamlined online loan products, these financing choices accommodate various business models and growth requirements. Read on to discover how each loan type aligns with your venture’s expansion strategy, empowering you to make confident and well-informed borrowing decisions.
Essential Business Loan Choices for Singapore Based Companies
Before exploring the best startup loan options available in Singapore, it’s essential to understand the different types of business financing currently accessible to entrepreneurs. Whether you’re building a tech startup, launching a retail outlet or running a home-based business, selecting the right financing option can determine how efficiently your company grows in its early stages. Here’s a breakdown of the most common types of business loans available in Singapore’s lending landscape.
1. Standard Business Loan
A standard business loan is one of the most common financing options offered by banks and financial institutions in Singapore. These loans are typically unsecured, allowing businesses to obtain capital without pledging assets such as property or machinery as collateral.
Loan amounts and tenure depend on each lender’s assessment, but most facilities come with a repayment period of up to five years. This form of funding provides flexibility and can be used for a wide range of purposes including managing operational expenses, purchasing inventory, financing renovations or supporting overall cash flow.
Startups with a few years of operating history and steady revenue streams may find this option practical, provided they meet the lender’s minimum income requirements and submit the necessary financial documentation.
2. SME Working Capital Loan (WCL)
The SME Working Capital Loan is a government-assisted financing scheme launched to support local small and medium-sized enterprises (SMEs). Administered under the Enterprise Financing Scheme (EFS), this loan allows eligible businesses to borrow up to S$1 million, with repayment terms ranging from 1 to 5 years.
To qualify, a company must be incorporated and operating in Singapore, with at least 30% local ownership by Singapore citizens or Permanent Residents. Since the Singapore government co-shares the risk with participating financial institutions, interest rates on WCLs are often more favorable than commercial loans.
For startups with strong business potential but limited financial history, this loan provides a credible path to scaling operations without excessive interest burdens.
3. Temporary Bridging Loan Programme (TBLP)
Initially introduced as part of Covid-19 relief efforts, the Temporary Bridging Loan Programme remains accessible to businesses today. This scheme was created to help companies facing liquidity challenges or planning to pivot their business model in response to economic disruptions.
Eligible businesses can secure loans of up to S$5 million, with flexible repayment terms of 1 to 5 years. Like the WCL, this programme also requires 30% Singaporean or PR ownership.
Although it’s a government-backed loan, startups can benefit if they already have basic operational footing. It’s especially useful for young companies with strong projections or plans to expand regionally.
4. Startup Business Loan
For early-stage businesses without an extensive track record, startup business loans are designed to overcome challenges related to limited financial documentation and lack of credit history. These financing solutions typically provide up to S$100,000, depending on the lender’s evaluation and the applicant’s overall business viability.
Although qualification standards are more flexible than traditional bank loans, approval often depends on the founder’s personal income, the quality of the business plan and accurate financial projections. Lenders may also look for market validation or evidence of a sustainable revenue model that shows potential for long-term stability.
This form of financing is particularly suitable for founders of lean startups such as e-commerce ventures, mobile service providers or boutique retail stores that require working capital to launch and scale operations. By bridging early funding gaps, startup loans can help entrepreneurs strengthen business foundations and accelerate growth.
5. Business Loans from Licensed Moneylenders
Not all startups will meet the stringent credit assessments imposed by banks. In such cases, licensed moneylenders offer a viable alternative for short-term financing. These lenders are regulated by Singapore’s Ministry of Law, which ensures they operate within transparent legal frameworks for interest rates, fees and collection practices.
Moneylenders can often disburse funds within a few business days, making them suitable for urgent financing needs. More importantly, they may approve applications from businesses that lack conventional documentation or have weaker credit profiles.
However, it’s important to note that interest rates and administrative costs tend to be higher than traditional lenders. Startups using this route should carefully evaluate repayment capacity and use such loans for tactical purposes, such as bridging cash flow gaps or covering launch expenses.
Top 5 Business Loans For Startups in Singapore
This guide highlights five of the most effective business loan options for startups in Singapore, carefully chosen for their affordability, accessibility and relevance to early-stage enterprises. Each loan is structured to meet different financing needs, helping founders access the capital required to grow sustainably.
From Anext’s digital-first lending solutions to Orix’s highly flexible financing packages, the selection covers a broad range of interest rates, fees and repayment structures. These options give startup founders the opportunity to evaluate and compare financial plans confidently, ensuring they choose the funding solution that best aligns with their long-term business goals.
1. ANEXT Startup Term Loan
ANEXT offers a straightforward startup term loan, well suited to founders seeking quick access to working capital. With a fixed annual interest rate of 7%, this product is structured as an unsecured term loan, so there’s typically no collateral requirement. The processing fee is either 1% of the loan amount or a flat S$200, whichever is higher. Notably, there’s no annual fee, simplifying cost structure for new business owners.
ANEXT Startup Term Loan
Repayment is predictable: for example, a loan of approximately S$50,000 over five years would have a monthly installment of about S$2,970.18. Simplicity and clarity of terms make ANEXT attractive for startups without extensive credit histories. It’s particularly relevant for bootstrapped teams needing seed capital or pre‑revenue run rate support while they validate product-market fit. Entrepreneurs should still prepare a clear business projection and basic financials to satisfy underwriting, but ANEXT’s lending criteria are more startup‑friendly than traditional bank offerings.
2. DBS Startup Financing
DBS Bank’s startup financing solution targets early-stage enterprises through both SME Working Capital Loan and Business Term Loan options. At a 6% annual interest rate, it offers one of the most competitive structures among local lenders. The processing fee is 1%, with no recurring annual service fee.
Assuming standardized loan sizing, monthly repayment for a five-year term approximates S$2,899.92, making it cost‑effective for startups aiming to scale. Importantly, DBS’s SME loan program supports up to S$300,000 (working capital) or up to S$500,000 for term loans, with the flexibility to leverage enterprise‑backed credit under the Enterprise Financing Scheme
3. Maybank SME e-Financing
Maybank SME e‑Financing is designed to support technology startups and service‑oriented new ventures seeking flexible capital solutions. The program offers up to S$300,000 of unsecured financing at an annual interest rate of around 7%, with a processing fee between 1% and 2% and no annual loan charges.
Maybank SME e-Financing
Businesses typically make monthly repayments of about S$2,970.18 based on a five‑year amortization period. Maybank distinguishes itself through its streamlined digital application process, which allows founders to apply online using Singpass or MyInfo. Eligible companies can receive an in‑principle approval within minutes, making it a practical choice for sole proprietorships and younger startups establishing their first‑year cash flow forecasts.
One of the main benefits of this financing is the absence of strict collateral requirements or the need for two years of audited accounts, significantly improving accessibility for new SMEs. Additionally, Maybank offers Shariah‑compliant financing options, supports ESG‑linked green financing initiatives and integrates Enterprise Singapore’s government‑assisted schemes for companies aiming to scale with structured growth funding.
4. OCBC Business Term Loan
OCBC’s offering for startups includes a business term loan partly covered by government-backed SME financing schemes. At an annual rate of about 7.5% and processing fees between 1–2%, it’s slightly higher cost than DBS or Maybank. There are no annual fees.
A typical monthly repayment runs around S$3,005.69, based on a standard five-year repayment schedule. Eligibility requires a minimum of one to two years of operations, often with at least S$100,000 in annual turnover and a local shareholding threshold (≥30% Singaporean/PR) based on the criteria for EFS loans
OCBC Business Term Loan
OCBC’s loan structure supports both working capital and equipment financing, with digital SME banking application, financial projections and sometimes a personal guarantee depending on credit evaluation. It’s best suited for startups that are entering early growth and expect consistent cash flow.
5. Orix SME/Startup Loan
Orix, a leading asset‑financing and leasing firm, offers dedicated SME and startup loan solutions for business owners who need reliable access to working capital. The average interest rate stands at around 8.5% per annum, with processing fees between 1% and 2% and no annual maintenance charges. This structure reflects the company’s willingness to accommodate higher‑risk borrowers while maintaining transparent loan conditions.
Orix SME/Startup Loan
Monthly repayments are estimated at about S$3,077.48, based on a five‑year repayment period. Although the borrowing cost is slightly higher than other financing options, Orix remains accessible to startups with limited documentation, lower collateral availability or unique funding needs often overlooked by traditional banks. The firm also provides bundled asset leasing and equipment financing solutions, making it especially attractive to capital‑intensive sectors such as food and beverage (F&B) and logistics.
Entrepreneurs who prioritize speed, flexibility and responsive credit approval may find Orix a valuable partner. However, it is important to monitor projected cash flow stability and evaluate whether the higher interest rate aligns with long‑term financial sustainability and business runway management.
Alternative Lending Options: P2P Lending for Startups
For early-stage entrepreneurs seeking faster and more flexible financing, peer-to-peer (P2P) lending has emerged as a powerful alternative to traditional bank loans. P2P platforms connect startups directly with private and institutional investors, eliminating the middleman and streamlining access to capital. Below are two prominent P2P lenders in Singapore tailored to small business and startup needs.
6. Validus P2P Lending
Validus is widely recognized as one of Singapore’s most reliable peer‑to‑peer (P2P) lending platforms, serving SMEs and startups that need growth‑stage capital. Its primary advantage lies in the use of data‑driven credit assessment, which allows for more precise risk evaluation and fairer loan conditions, even for younger companies with limited financial history.
The platform offers loans with interest rates starting at approximately 1.3% per annum, making it a cost‑effective option for founders managing constrained cash flow. Borrowers typically pay a processing fee between 2.5% and 5%, but there are no annual maintenance charges, helping to lower long‑term borrowing costs. The monthly repayment averages around S$2,583.48, depending on the financing amount and repayment period.
Validus P2P Lending
Validus also enhances accessibility through its automated underwriting system, which expedites approvals and enables fund disbursement within several days. This efficiency is particularly beneficial for businesses that need quick access to working capital to capture short‑term opportunities. With support from a strong network of institutional investors, Validus caters to sectors such as logistics, technology and retail, offering financing options including invoice funding, expansion loans and business term facilities.
For entrepreneurs who value speed, flexibility and data‑driven lending decisions, Validus delivers more than funding. It provides intelligent financial solutions grounded in real‑time performance analytics, ensuring that growing companies have the means to scale confidently and sustainably.
7. Funding Societies P2P Lending
Funding Societies is a leading name in Singapore’s peer‑to‑peer (P2P) lending ecosystem, offering a broad range of financing options such as short‑term business loans, invoice financing and micro‑credit facilities designed for startups and SMEs. The platform’s financing solutions come with a competitive annual interest rate of around 1.65%, slightly higher than some alternatives but still significantly lower than traditional SME loan rates. Borrowers typically pay a processing fee between 3% and 8% and there are no annual maintenance charges, helping founders keep overheads manageable. Monthly repayments average S$2,606.26, supporting steady cash flow planning.
Funding Societies P2P Lending
One of Funding Societies’ strongest advantages is its proprietary credit algorithm, which goes beyond standard financial metrics. It integrates alternative data points such as business reviews, supply chain interactions and transactional histories. This approach enables early‑stage businesses and micro‑entrepreneurs with limited operating records to obtain financing that might otherwise be unavailable through traditional banks.
Startups in sectors like food and beverage (F&B), retail, e‑commerce and professional services often choose Funding Societies for its rapid loan disbursement, customizable repayment schedules and mobile‑first loan management platform. The digital onboarding process typically takes under 15 minutes, with credit approval delivered within 24 to 48 hours, making it a highly efficient option for founders seeking flexible, scalable and fast‑access working capital.
Latest Startup Business Loan Rates
The table presented showcases current startup business loan options from banks and lenders. These financing products cater to early-stage startu-ups, featuring competitive rates, flexible repayment terms and loan amounts suited for new business requirements.
Consideration
Before securing a business loan, startup founders in Singapore should approach debt financing with strategic planning. While the options discussed above serve early‑stage ventures effectively, each financing type carries its own trade‑offs in cost, flexibility and eligibility requirements.
It is essential to assess interest rates and monthly repayment obligations in line with your projected cash flow. A seemingly attractive rate can still lead to higher overall costs once processing fees, annual charges or early repayment penalties are factored in. Always calculate the effective borrowing cost to understand the complete financial impact. Founders should also consider whether the lender provides unsecured funding, which is particularly helpful for startups that lack substantial fixed assets.
Digital lenders such as Anext may offer fast onboarding and require less documentation, making them suitable for founders who need quick access to capital. On the other hand, traditional banks like DBS and OCBC often extend larger loan amounts and longer repayment periods for borrowers with stronger credit histories. Evaluating factors such as your business stage, repayment capacity and capital structure will help identify financing options that align with your company’s broader growth objectives.
It is equally important to choose a lender that values transparency, provides responsive customer service and delivers customized loan solutions. Partnering with an institution that understands your business trajectory can make future funding rounds more efficient and support long‑term financial sustainability.
