Best SME & Business Loan Options in Singapore

Business Line of Credit

Many businesses have a credit line to manage unforeseen expenditures and fund growth opportunities. It can be thought of as a credit card for your business. Interest is charged only on the amount that is drawn, and the credit limit goes back up once the amount drawn is repaid.

It is worthwhile to consider a business line of credit, even if your finances are healthy. With a credit line, you can draw funds as needed, up to a limit over a short period of time. This allows quick access to capital for any reason, and have greater control and flexibility over the use of these funds.

Business Line of Credit or an SME Line of Credit can also serve as Merchant Credit Line, which merchants can use to pay for goods from suppliers.

Credit lines are a great way for a company to increase their capital and take advantage of sudden business opportunities.

Working Capital Loan

A working capital loan is a very common type of business loan or SME loan used by a company to finance its everyday operations, such as payrolls, rent, and inventory.

Working capital loans are usually taken when a company requires cash/asset liquidity to cover day-to-day operational expenses so that they can put more money into expansion.

They are commonly used by companies that have high seasonality or cyclical sales, such as retailers, to tide them through periods of reduced business activities.

One of the benefits of a working capital loan is that it does not require an equity transaction. Therefore, a business owner still maintains full control of their company. It’s also a good way for business owners to cover any gaps in working capital expenditures. Support your daily operations or cover your short-term expenses with this type of business loan.

Bridging Loan

A bridging loan is a short-term business loan to help you meet current obligations by providing immediate cash flow, while expecting fresh fund coming within a short time frame.

Bridging loans can be used to purchase property, fund restoration works, and even to secure business opportunity.

For example, bridging loan could be used to prepay F&B event premises, that in turn drive revenue for the business.

Expansion Financing

Expansion financing comes in handy when your business sees an opportunity to grow and expand. It can be used for internal growth by launching new products or the acquisition of smaller companies.

It is also useful for taking advantage of opportunities that may lead to compounded growth, despite not having the available funds at the moment.

Companies typically use expansion financing to fund growth projects while still retaining enough capital to handle daily company operations.

Auto Financing

a) Car Flooring Loan

An auto financing plan allows you to use revolving credit facility to finance an existing stock of new/used vehicles. This allows you to free up cashflow by not tying up large amounts of assets in showroom stock.

For instance, a dealer may want to purchase 100 models of a new car, but needs additional capital to do so. Through auto financing, he can draw down the credit facility to finance the cars, and proceed with repayment as they are sold off.

Auto Financing

b) In-house Loan

Buying a car in Singapore can be difficult without proper financing.

In-house auto loans offered by Capitall help car buyers finance a car easily, regardless of your credit status. Even if your loan applications have been rejected from a bank or financial institutions, getting a car of your dreams is now easier, faster and more affordable with Capitall.

Payroll Loan

Payroll loans are short-term business loans that help to cover your staffing fees. They can help you to divert your capital into other ventures, such as growing your business.

A payroll loan can also be a good way to tide your company through jumps in employee salaries, examples of which include year-end or loyalty bonuses.

They can be used to subsidise immediate financial needs, such as when you’ve contracted extra workers for a big event.