How to get an SME loan?

Hey Anon, you can check out Aspire, which targets SMEs and Startups, to see if you're eligible to apply for a loan.

Eligibility Requirements:

• Business is Pte Ltd, LLP or LLC

• Singaporean or PR director with min. 25% shareholding

• Active corporate bank account for at least 6 months

Fees (Depending on the financial health of your company):

• Processing Fee between 2 – 4% on the amount withdrawn

• Interest Rates between 1 – 3.9% simple monthly interest
  More information can be found at the bottom under the FAQ https://sg.aspireapp.com/credit-line/.

Banks will not finance a brand new startup. Typical requirement would be bare minimum of 2-3 years operational history. For newer companies that are operational and revenue generating, 6 months to 1 year incorporation history could give a shot as well, but do expect smaller financing amounts for a start.

Alternative lenders like P2P platforms will typically not fund startups with no operational track record as well. VCs and angel investors might be more appropriate channels.

You did not mention if you're already running an existing business and are looking for funds to finance another new business idea. If you are, then banks should be the first port of call. You can consider applying financing under your existing business and utilize it to bankroll your new business.

With Covid-19, there are some government assisted financing schemes for SMEs such as the Temporary Bridging Loan that you can look at. Others include the SME Working Capital Loan. The former would be the best option currently as interest rate is very compelling, between 1.5% to 2.5% p.a. effective rate.