The Lowest Interest Rate Business Loans in Singapore

The Lowest Interest Rate Business Loans in Singapore

Businesses need money for daily operations just like how individuals need their salary to provide food on the table. When a company fails to secure its finances, it may cause lots of trouble in the long run. One of the ways that firms resort to is filling for a business loan. Even the most successful brands seek help from banks and financial institutions for the extra fund. Even the countries with high-rank economy make the cash flow runs through loans. (50)

First Things First, Business Loan Type

The usual question businesses ask is the amount of money it needs and what for. Is it for short or long-term? When the company’s profit is not enough to suffice for its expenses and performance, lending is mostly the answer to that problem. However, businesses need to know first what type of loan it needs. Each has its distinct characteristic that will help the company on its specific necessity.

Here are some types of loans that money lender in Singapore can offer:

  • Secured Business Financing – it is a crucial type of credit as it asks for collateral from the business. Banks and financial institutions want to lessen the risk of lending by getting something from the company in case it fails its payment.
  • Unsecured or Non-Collateral Financing – contrary to the secure financing, it does not need collateral. This is beneficial for businesses as it does not put them at the risk of losing assets. However, the company should have a credible credit history to be approved.
  • Guarantor-Based Financing – this applies to businesses that fail to be categorized in both secured and unsecured financing. They need a guarantor that can sign then pay on the business’ behalf if it does meet its payment obligations.
  • Commercial Property Financing – In Singapore, some banks offer loans for purchasing commercial property to start up a business.
  • Government Assisted Loans – Singapore Government offers different schemes such as Micro Loan, Insurance, and Enterprise Finance Scheme to companies registered in Singapore to help them expand their business or continue operating.

Banks In Singapore With A Not-So Whopping Interest Rates

After establishing the type of loan, it is time to have some research about the interest rates of these credits. Interest rates are crucial in the business; it may not do you good if it costs too much. Here are some banks that may serve as your trusted money lender lender in Singapore:

  • DBS Business Loan – allows the business with easy cash to enhance its daily operations. Its type of loan is unsecured with fixed monthly payments. It has 10.88 percent interest rate with the maximum amount of SGD 500,000. It has five years tenure with 2 percent processing rate. Most importantly it does not have an early repayment penalty.
  • OCBC Business Loan – offers different business loan products designed solely for the businesses registered in Singapore. These include Business Purchase Financing, Equipment Machinery Financing, Collateral-free loans, Internationalization Finance Scheme, and Commercial Property load. OCBC is flexible with this myriad of credit products. It also has 10.88 percent interest rate and SGD 500,000 maximum amount offered. Its processing fee is 2 percent with five years tenure and 3 percent early repayment penalty. For approval, there should be 30 percent ownership of the company from a Permanent Resident or a Citizen of Singapore. The business should also be ongoing for the last two years.
  • UOD Business Loan – offers Government Assistance Loans. It is also flexible with different terms of credit such as:
    • Short-Term Credit – it is unsecured and gives UOB BizMoney, UOB Overdraft, and UOB Platinum Business Card.
    • Equity Loan and Business Property – where businesses can get credit to purchase a property for their business.
    • Machinery and Vehicle Financing – this financial assistance lets the business purchase vehicles or machinery for its operation.
    • BizMoney Account – it does not require security and offers up to SGD 350,000.

UOB also has 10.88 percent interest rate with four years tenure. It has 2 percent processing fee and 6.88 percent early repayment penalty.

  • Standard Chartered Bank Business Loan – or also called as a business installment loan. It does not need collateral with a maximum of SGD 300,000 credit to offer, but the business should have SGD 500,000 minimum turnover.

It is crucial to know the interest rates and the penalty for the loans business are applying for. Loans tend to help companies to expand or continue its operation, and it would not be good if it will make the situation worse. Businesses should be wise and do its research thoroughly about what loan they need and where is the best place to get it. A licensed money lender in Singapore such as is probably the best resort.


Posted in: Business, Loans