Get Working Capital Loan In Singapore

What is working capital loan

Working capital of a company is calculated as the difference between its current assets and its liabilities. The working capital is a measure of the company’s efficiency in achieving the day to day activities and other operational activities. A shortage in the working capital can affect the functioning of any business. There are many different ways to avail working capital loans in Singapore.

How to get working capital loans in Singapore

The traditional way of getting a loan through bank loans are available for working capital too. These can be different for different types of enterprises. A traditional bank loan can avail the necessary amount for you to fulfill your working capital needs.

Working Capital Loan In Singapore

Other than bank loans, there are invoice financing, term loans and so on. Some of these financing services are:

  • Financing assets
    • Receivables financing
    • Trade financing 
    • Property financing
    • Equipment financing

These financing methods differ largely depending on the nature of financial services. However, here you can make use of your assets to gain funds to increase working capital which will help in the smooth business operations.

  • Unsecured bank term loans

These are the common and the traditional way of lending a large sum of amount from the bank with a longer repayment schedule.

  • SME loans

There are government initiated loans for SMEs, especially to gain working capital.

Getting these loans takes passing the eligibility barriers and other terms and conditions. Traditional bank loans call for strict eligibility criteria than other financial services.

Eligibility for working capital loan in Singapore

Different services have different eligibility criteria. To start with the bank loans, each bank has put up a different eligibility bar. Some of them require your business/company be established for 2 years while some other demand 3 years of existence. The history of your company matters when you are applying for a bank loan.

In addition to that, there are terms for the minimum revenue from your business that makes you eligible for the bank loans. Again, this amount can differ for the bank to bank and type of loan you are trying to avail. The bank balance of the company also matters when it comes to loan application.

Other financial services like factoring don’t require strict documentation as bank loans and are comparably easy to process.

Fee for working capital loans

When applying for a loan, typically from a bank, you will come across different kinds of fee. Though it is not easy to compare all the fee for different banks, there is some fee which generally every bank takes for their services.

  • Application fee
  • Processing fee
  • Service fee

Invoice factoring

Invoice factoring is one of the fastest and easiest methods to get your funds. In recent years, especially in Singapore, the number of SMEs choosing to factor their invoices have raised and the stigma around invoice factoring has changed and more and more industrial verticals are choosing this service.

Finaxar

Finaxar is Singapore’s leading financial institution that provides factoring services to both businesses including SMEs. You can choose from two of their product line, receivable financing and finaxar credit line, whichever suits your business.

The application procedure is easy and online. You can create your account by sigining up here and integrate your accounting software to the account The verification of documents are typically done within a day and the funds are credited to your account within 3 days of approval. You can contact us for more details on the process and application here.