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Corporate Loans
The main financing options available to Singapore SMEs, explained simply.
Most SMEs assume "business loan" means one product. In practice, Singapore's SME financing landscape covers several distinct types, each suited to a different problem — and knowing which one matches your situation can save you time and money.
| Financing type | Best for | Typical tenure |
|---|---|---|
| Working capital loan | Day-to-day operating costs (payroll, rent, suppliers) | Up to ~5 years |
| Trade & invoice financing | Cash tied up in trade cycles or unpaid invoices | Short-term / revolving |
| Equipment & fixed asset loan | Machinery, equipment, or business premises | Up to ~15 years |
| Bridging loan | Short-term timing gaps between payments | Short-term |
Meant for day-to-day operating expenses — payroll, rent, supplier payments — rather than long-term investment. Many working capital loans in Singapore are offered under the government's Enterprise Financing Scheme (EFS-WCL), which allows government risk-sharing with participating banks and finance companies, making approval more accessible for smaller or younger businesses.
If your business imports, exports, or simply waits weeks for customers to pay invoices, trade and invoice financing can free up cash that's otherwise tied up. Trade financing covers inventory or pre-delivery working capital; invoice financing (sometimes called factoring) advances you a portion of unpaid invoice value, with interest charged only on the amount you actually use.
For businesses buying machinery, equipment, or commercial premises, fixed asset loans are structured over a longer tenure — often up to 15 years — since the underlying asset has a longer useful life than a typical working capital need.
Short-term financing to cover the gap between when a payment is due and when funds actually arrive — useful for office relocations, one-off promotional costs, or timing mismatches between two transactions.
Many of these loan types are available through Enterprise Singapore's Enterprise Financing Scheme, which shares default risk with participating financial institutions. That risk-sharing is often what makes approval realistic for SMEs a bank might otherwise see as higher risk.
The ordinary risk share is 50%, rising to 70% for qualifying young enterprises. From 1 September 2026 to 31 March 2027, Enterprise Singapore has published a time-bound enhancement raising the risk share to 70% for all enterprises on the SME Working Capital Loan and the Project Loan, following a Ministry of Finance announcement on 29 July 2026.
Risk sharing is an arrangement between Enterprise Singapore and the lender. It does not reduce the borrower's obligation — you still repay 100% of the loan, and the participating institution still makes its own credit decision.
Eligibility generally requires at least 30% local shareholding and group annual sales turnover not exceeding S$500 million. Individual facilities apply their own additional tests: the SME Working Capital Loan, for instance, also requires group revenue of up to S$100 million or a maximum of 200 employees. Meeting the wider criteria does not mean you meet the facility-specific one.
Figures checked against Enterprise Singapore on 3 August 2026. Terms, quantum caps, and participating institutions are set by Enterprise Singapore and can change — always confirm current figures before applying.
Fundwise isn't a lender. We help SMEs work out which financing type actually fits their situation, and connect them to the banks and finance companies that offer it.
Explore working capital, trade facilities, or EFS loans, or get in touch to talk through your business's specific needs.
Tap on our knowledge to make better decisions for yourself.
