What you should know about business loans in Singapore
Need a business loan? Read this handy guide for Singapore business owners first.
If you’re a business owner in Singapore thinking about taking on a business loan, the sheer number of available options can be overwhelming. Here are some important things you need to know before you take on a business loan.
- There are different business loans to suit different needs
If you’re looking at growing your business and require additional working capital on hand, consider a DBS Working Capital Loan. If the amount you need to borrow is likely to exceed S$300,000, however, a DBS Business Term Loan, which allows you to borrow up to S$500,000, might suit your cashflow needs better. If you are looking at purchasing specific assets for your company – such as new equipment or even a new commercial property – DBS offers an equipment financing loan and a commercial property loan for your needs.
- Your company could be eligible for other types of financing
If you run a tech start-up in Singapore, and your business is backed by a DBS partner venture capitalist, you could be eligible for DBS Venture Debt Financing. If you’re running a business with a specific social cause, consider applying for the DBS Social Enterprise loan, which will give your social enterprise access to funds at preferential rates.
- Your business loan could be secured or unsecured
Depending on the type of loan you choose, your debt can either be secured or unsecured. An unsecured loan does not require the borrower to put up any collateral when applying for the loan – meaning the borrower’s physical assets are not at stake in the event of a loan default. A secured loan, such as certain types of overdraft facilities or property loans, require the borrower to pledge physical assets which could be seized in event of a default.
- Loan tools are available to help you plan
If you are relatively unfamiliar with the process of applying for a business loan, it’s worth spending time getting up to speed on the different business loans available to Singapore businesses. DBS has a SME loan calculator designed to help you compare the different types of available business loans, to help you decide what works best for your company before you apply.
- You can apply online for a business loan
Applying for a business loan is convenient and easy – all you need to do is apply online on DBS’ online loan application platform. Before you begin your application, ensure that you have all your necessary documentation handy – you’ll need your personal identification documents, the consent and personal information of your guarantor, as well as supporting documents such as your personal income tax assessment, company financial statements and bank statements.
Find out more about DBS’ loan offerings for Singapore-based businesses today.
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