Loans and Financing available for small business in Singapore
Singapore is an ideal location for global businesses to site their headquarters. Strong trade and investment makes Singapore the most competitive Asian country and the world’s easiest place to do business.
By situating your international HQ here, your company benefits from:
- Singapore’s network of over 50 comprehensive Double Taxation Avoidance Agreements.
- Singapore’s many free trade agreements and the Investment Guarantee Agreements.
- Protection for your ideas and innovations thanks to Singapore’s strict enforcement of its strong intellectual property laws.
Foreign businesses that wish to set up a representative office in Singapore may approach these government agencies:
- Banking, finance and insurance – Monetary Authority of Singapore.
- Legal – Legal Services Regulatory Authority.
- All other industries – International Enterprise Singapore.
Singapore provides a wide choice of premises for businesses. Whether situated in the heart of the civic district or in a suburban estate, housed in modern luxury or a flatted factory, businesses are assured of premium facilities and infrastructure.
Singapore attracts businesses with its strong pool of local and international talent. Employees are easy to find through the many online recruitment portals and head-hunting agencies.
Assistance from government agencies
You can contact the following government agencies for help in growing your business in Singapore
Economic Development Board (EDB): the EDB provides comprehensive investor support and ensures a first-rate pro-business environment in Singapore.
Standards, Productivity and Innovation Board (SPRING): SPRING, an agency under the Ministry of Trade and Industry, is the enterprise development agency for growing innovative companies. It also helps small and medium enterprises sector become more competitive. The agency aids enterprises in financing, capabilities and management development, technology and innovation, and access to markets. SPRING is also the national standards and accreditation body.
Accounting and Corporate Regulatory Authority (ACRA): ACRA oversees the registration and regulation of business entities and public accountants, and also provides information on new business structures, compliance requirements, and corporate governance practices.
SMEPortal.sg: the Enterprise One portal is a one-stop site for enterprises looking to start, sustain and grow their businesses. It features links to government information and services, as well as industry help and how-to guides.
LOANS FINANCING FOR BUSINESS
It can be very challenging to obtain a loan for a startup anywhere in the world.There are a variety of ways to finance your business besides bank loans. We list some of those options here:
Home Equity Loans
It can be very challenging to obtain a loan for a startup anywhere in the world. The story is no different in Singapore as the majority of small business bank loans are rejected by Singaporean financial institutions. But smart entrepreneurs should not despair. There are a variety of ways to finance your business besides bank loans. We list some of those options here:
The total amount that you can borrow through a home equity loan depends on your property’s current market value. It will also depend on your outstanding home loan amount, and the CPF funds spent when buying your home.1 As with any financing, the risk here is that you could lose your property.
Loans from Friends and Family
Family members and friends who trust your business may be willing to finance your business. Loans from Family and friends may be based on verbal agreements. But it is a good idea to have a formal written loan agreement
Venture capitalists are investors who are looking for a high rate of return on their investments.This is the main reason why venture capitalists invest in high growth areas such as IT and technology.
The advantage of venture capitalist funding is that VCs offer advice on increasing the profitability of your business, effectively managing your operations, and can help you connect with experts to provide valuable input.
Angel investors are wealthy individuals who provide both financing and business expertise to startups in exchange for equity. The main difference between venture capitalists and angel investors is that the latter have a higher appetite for risk and do not demand the stratospheric rates of return expected by VCs. Angel investors would play an active role in the business.
Peer to Peer lending
P2P lending is a new and innovative financing option for startups in Singapore. P2P Lending platforms match investors with startups that require financing.P2P Borrowers can have their loans in three days.
Personal loan in Singapore is one of the most popular loan from licensed money lender. A personal loan has a lower value compared to a mortgage loan and people usually take it out to pay for a wide variety of things, including their car, electronics, debt consolidation and so forth.
- Can borrow amounts of up to 4 months of monthly income.
- Fixed interest rates.
- Early repayment options.
- Repayments are the same each month.
Payday loan in Singapore allow you to borrow a small amount of money at a high interest rate which needs to be paid back in as little as 30 days or at your next paycheck.
- Convenience & Flexibility.
- Fixed interest rates.
- Fast approval.
- Easy to qualify for.
A Foreigner Loan is a type of loan for a foreigner who has valid work permit / employment pass in Singapore. If security is to be provided, as a borrower you’ll need to put some collateral against the loan amount.
- Foreigner loan is not subjected to an extensive background or credit check.
- You receive money fast.
- Low interest rate.
- Minimum number of documents required for approval.
Singapore business loans are funds given to various kinds of businesses by an organisation, individual or bank and it usually needs to be repaid by a specific date and with a specific amount of interest. The qualification of the borrower, the repayment date, interest rate and the loan amount are all variable.
- Short term business loan solve cash flow issue.
- Fast approval compare to banks.
- Various loan payment options.
- Accessible and convenient.
5.Instant Cash Loan
Instant cash loans in Singapore allow individuals to borrow a certain amount of money, usually influenced by their salary until their next paycheck. While the interest rate is very high, they’re generally used by people who find themselves in financial emergencies and therefore need money fast.
- You can borrow up to 2 to 4 months of monthly income.
- Almost anyone qualifies as long you have prove of income
- Your credit score is irrelevant.
6.Cash Advance Loan
Cash advance loans in Singapore are very similar to payday loans in the sense that you’ll be able to borrow a certain amount of money from a lender before your payday. While most people qualify for these kinds of loans, they do carry a high interest rate.
- You don’t need to put any collateral down.
- The application and collection process is straightforward and simple.
- You’ll be able to gain quick access to the cash you need.
- High approval rate.
- Amount of money you can borrow depends on your income.
Education or student loans are loans specifically designed for helping students to pay for university tuition, living expenses and books and they’re usually offered by a licensed money lender. Generally, the repayment schedule starts as soon as the student graduates and the interest rates are very low.
- Very low interest rates.
- High approval rate.
- Almost any student qualifies.
A renovation loan is usually taken out in order to help the borrower fund improvements that he wants to consider for his apartment or house in Singapore.
- Large credit ceiling.
- Allows borrowers to select their preferred repayment method (weekly, monthly, etc).
- You can select between fixed and variable interest rates.
Vacation loans are a type of loan which can be used exclusively in order to pay for a vacation.
- Ability to get cash right away.
- There are no hidden fees.
- You start paying it back as soon as you return from your vacation.
10.Short Term Loan
Short term loans in Singapore are also known as caveat loans and they’re designed in order to help businesses having trouble with their cash flow fix these issues and get back on track with their finances.
- No application fees.
- Approval period is very short (a matter of hours).
- Easy & Flexible.
- Lose credit checks involved.
There are different funding options for investing in the business in Singapore.The different funding options available are Equity Fund raising, Angel Investors, Private financing and Venture Capitalism.