Business Loan In Singapore: 6 Tips To Increase Your Approval Chances

Does your business need a loan? Have you already tried applying for loans in the past but got rejected? 

In Singapore, it’s almost impossible to go about building up your business without getting a business loan. Having your business loan rejected can be extremely troublesome. 

If you have been following this space, we have previously discussed some possible reasons why your business loan might have been rejected. So, what can you do to ensure that your next application will go smoothly? How can you get your hands on funds as soon as possible to grow your business? 

Here, we will be showing you some great ways to increase your chances of getting your business loan approved.

Infographic on 6 tips to increase your chances of business loan application approval
Get your business loan approved by following these tips.

1. Build A Good Credit Record

Having a strong credit record is of paramount importance. Whether you’re borrowing from banks or private financial institutions, having a good credit history will definitely be helpful for you. 

Businesses with good credit scores signal to lenders and banks that they are responsible and can make timely payment. 

After all, nobody likes lending out funds to someone who cannot be trusted to repay on time. 

Showing banks and lenders that you are a good steward of their resources signals to them that they are taking a lower risk when they are lending funds to you.

On the other hand, having a poor record induces low confidence and potentially causes your loan application to be rejected. 

2. Provide A Clear And Good Business Plan

Imagine lending some funds to a friend. 

Would you rather lend it to him if he provided a good reason for why he needs the funds? Or would you lend it to someone who is secretive about what they want to use the funds for? 

The same applies for getting yourself a business loan. 

Having a clear business plan is key in getting your loan application approved because it signals to banks and private financial institutions that your business is trustworthy. 

Besides telling them how their funds will be utilised, you should also explain how you intend to repay the debt. Giving the impression that you know how to use the borrowed funds wisely will enable your application to be approved quickly.

With Capitall, you can secure up to S$300,000 to expand your financial prospects.

3. Having A Well-maintained Bank Balance

This might sound a little too simple. But having a healthy bank balance is a great way to increase your loan application’s approval chances. 

This is because a well-maintained bank balance shows that your business is doing reasonably well and not in some kind of dire financial situation. 

Keeping your bank balance in a healthy state shows banks and private financial institutions that you have the ability to repay loans and not default on your payments. 

4. Have Existing And Upcoming Projects In The Pipeline

Another great way to show that your business is a good prospect to lend loans to is to have ongoing projects. 

Showing to lenders and banks that you have projects on a regular basis tells them that your business is doing well. After all, no one wants to lend a huge sum to a fumbling business that has little to no chances of repaying debt. 

Having projects on your plate shows that your company is doing well and is able to generate income to pay back the loans.

5. Apply At The Right Time

Yes — there is a “right time” and a “wrong time” to apply for loans. When your business is volatile and unstable, applying for loans becomes much harder. 

Firstly, unstable businesses tend to not have the best bank balances. 

Secondly, they tend to have few or no projects in the pipeline. These signal to lenders that they might be taking a higher risk lending funds to such businesses. 

So how do you go about applying for loans when you need one? 

One way is to secure funding early, even if you don’t need the funds immediately. It’s always easier to secure loans when your business is doing well. Hence, being able to make projections on when you need funds ahead of time is crucial. 

Since businesses tend to be seasonal, most private financial institutions require the last 6 months of bank statements when you’re applying for a loan. 

Keeping this in mind, it’s definitely wiser to apply for loans when your business is doing well, even if you don’t need it urgently at the moment.

6. Provide The Required Documents

When applying for loans, having the necessary documents ready definitely helps. You don’t want to be scrambling to get your documents and not know what is required of you. 

This causes you to miss out on submitting important documents and also gives lenders the impression that you are uncertain. 

Here are some of the documents you’ll need when applying for a business loan.

Do note that the documents required may differ depending on lenders:

  • ACRA Business Profile Information
  • Latest 6 months of bank statements
  • Company financial statements for the past year
  • Latest Credit Bureau Singapore (CBS) credit report of applicant(s)
  • Latest Moneylenders Credit Bureau (MLCB) report of applicant(s)
  • Upcoming contracts


Optional documents:

  • Aging reports
  • Expected invoices
  • Other documents that may be applicable to the loan assessment

1. ACRA Business Profile Information

Your business profile information from the Accounting and Corporate Regulatory Authority (ACRA) will allow private financial institutions and banks to have an overview of your business.

In it, the document will contain information about your shareholders, directors, and your company’s paid up capital. As such, financiers can understand the nature of your business and decide who to bring in as a guarantor if necessary.

2. Latest 6 Months Of Bank Statements

The last 6 months of bank statements will be needed by most financiers when you want to take a loan. This is because it can help them have a clearer picture of how your business is doing financially and help them decide if they are taking high risks lending funds to you.

3. Company Financial Statement For The Past Year

Your company’s financial statement for the past year serves a similar purpose as the bank statements. However, beyond just showing how well your business is doing, your financial statements show how consistent your business is with payments and repayments. It also serves as a track record of your business’ financial health.

4. Latest Credit Bureau Singapore (CBS) Credit Report Of Applicant(s)

The CBS Credit Report is a document which covers your credit score. Generally, lenders will require a business credit report from CBS to show that you have a healthy credit history.

woman showing credit report papers to client
A credit report is an essential document when applying for a business loan in Singapore.

5. Latest Moneylenders Credit Bureau (MLCB) Report Of Applicant(s)

The MLCB report is similar to the CBS credit report.  

The main difference lies in that this document is required by private financial institutions. 

Similar to banks, they will need you to show that your business has a healthy credit history before they can approve your business loan.

6. Any Upcoming Contracts, Aging Reports, Expected Invoices And Other Documents That May Be Applicable To The Loan Assessment

Other than showing that your business has regular projects and income, there are many ways to increase the approval of your application. 

You can also submit expected invoices, upcoming contracts, or any other related documents to show that your company is doing well and has the capabilities to repay the loans. 

Getting Your Business Loan Approved Is Not As Difficult As You Might Think

If your application was turned down before, it’s important to first consider the reasons why. Was it due to bad credit? Or was it due to incomplete information about your business? 

If you’ve yet to apply for a business loan, you might want to check out the things to ask before getting a business loan in Singapore.

When applying for loans, earning trust from banks and private financial institutions is crucial. It’s not enough to just make claims about your businesses — you’ll need to show that your business is in good shape with the relevant documents. 

Unsure of the information you need to submit? Reach out and speak to Capitall financial consultants for professional advice. 

Share:

Read Our Other Articles.

Business Loan 5 Tips On Using A Merchant Cash Advance And How To Relieve Debt From It

It can be tough owning a business, especially in Singapore, the world’s most competitive economy. There might come a time when a short-term expense puts you in need of additional financing. Perhaps you’re looking for a merchant cash advance because you need cash urgently. Or maybe you have a credit history that didn’t fit the […]

Business Loan A Guide To Merchant Cash Advance And How It Works

With the economy in an unpredictable flux, it can be tricky navigating through these uncertain times as a business owner. Certain business decisions incur expenses that can put you in need of immediate cash. While a business loan might seem like a solution, the terms and conditions may not always meet your business needs. In […]

Business Loan Is Merchant Cash Advance Suitable For Your Business?

As you try to secure extra funding for your business, you might have stumbled upon the term merchant cash advance. Clueless as to what it is? Here’s a lowdown of what it can offer. A merchant cash advance is a form of short-term business funding that could serve as a lifeline for businesses that had […]

Business Loan 6 Strategies To Finance Your F&B Business During These Trying Times And How A Business Loan Can Help

Running a business is not easy. It’s even harder to run a food and beverage (F&B) business due to its fast-changing nature. Healthy cash flow is needed for smooth business operation, and without enough funds, problems will only accumulate.  Now with COVID-19, the world’s economy has taken a tremendous hit, and many F&B business owners […]

Business Loan 4 Best Business Loan Options For Financing Your F&B Business

2020 hasn’t been kind to many businesses. With the outbreak of COVID-19, food and beverage (F&B) businesses in Singapore have taken a significant hit, facing over 50% – 80% drop in revenue with more than 500 eateries closing down. Well-known restaurants such as The Chophouse and The Starker Group have made the painful decision to […]

Business Loan Business Line of Credit: How To Increase Your Chances Of Getting One

Every business will face trying times. The struggle of staying afloat amid reduced revenues or rising costs is an experience all businesses will go through at some point. The repercussions of the current COVID-19 pandemic is a testament to this. You need a healthy reserve of funds set aside for rainy days to see your […]

Business Loan 6 Things Business Owners Should Consider When Taking A Business Line Of Credit

Is your business expanding? Or is it in its initial stages and you are looking forward to launching your new product or service? Whether your business is mature or just starting out, you might have considered taking a business line of credit. In Singapore where there is a high saturation of SMEs in almost every […]

Entrepreneurship How To Start A Business In Singapore: A Comprehensive Guide For Aspiring Business Owners

Whether you have been toying with the idea of running your own company, or thinking of leaving your job to be an entrepreneur, it’s not difficult to understand why many would want to be their own boss and learn how to start a business in Singapore.  In recent years, Singapore has been consistently rated as […]

Business Loan Business Loan In Singapore: How Can Invoice Financing Help Your Business?

Being cash-strapped is not a great feeling. Running a business and managing operational expenses and monthly overheads can get stressful. Thus, having a good cash flow is essential to ensure that your business stays afloat and prospers. But how do you ensure a good cash flow when your business relies heavily on invoice payments? Outstanding […]

Business Loan Invoice Financing in Singapore: A Business Loan For SMEs

It is never easy having to rely on multiple clients for income. As reliable as they may be, no client is immune to the need for an occasional late payment request, especially in times of economic crisis like global pandemics or recessions. Neither is a 60-day invoice that you issued to a client going to […]

Business Loan Business Loan In Singapore: How Can A Business Line Of Credit Help Your SME?

As a business owner, you probably have had your fair share of experiences managing tricky financial situations. Finding yourself in a position where your business finances are not enough to cover operational expenses can be daunting. In times like this, turning to a business loan in Singapore can be useful. A business line of credit, […]

Business Loan Business Loan In Singapore: When Should Your Business Consider Payroll Loans?

Managing a business in Singapore is not easy. Operating costs such as payroll make up for a considerable percentage of your monthly overheads. As a business owner, you may have run into a cash flow crunch and need a quick influx of cash to pay your employees or hire extra help. This is where many […]

Business Loan How A Business Loan Can Prepare Your Business For A Post-Pandemic World

2020 has been one of the most challenging years for businesses worldwide. With COVID-19, there are many unexpected costs and preparations to be made. Although many companies in Singapore have reopened, it may take some time before business picks up. If you are a business owner, what should you do to prepare you and your […]

Business Loan Business Loan In Singapore: Guide To Taking An in-house auto financing Loan

Is your business in need of vehicles for transportation? Or are you an individual looking to own a car in Singapore? Whether you are looking for a fleet of vehicles for your catering, delivery, or cleaning business, or just an individual looking for a car, business loans in Singapore can be a great help to […]

Business Loan 4 Essential Questions To Ask Before Engaging An SME Loan Broker In Singapore

This period of unexpected circumstances in Singapore is forcing SMEs to face monumental challenges. Businesses from almost every sector have been impacted by the recession and the Covid-19 situation. If your SME business has been hit, you are likely looking for solutions right now to tide through this season. So where does a Singapore SME […]

Business Loan Should You Engage An SME Loan Broker For Your Business In Singapore?

At some point in your business, be it at the start-up or expansion stage, you might find the need for extra funds to push it forward. You might also be wondering if it’s worth engaging the services of an SME loan broker for your business in Singapore.  Would hiring a loan broker add value to […]

Business Loan How Credit Rating Affects Your Business Loan In Singapore

If your business is in need of funds and you’re seriously considering taking a loan, you will need to know the importance of credit ratings. No matter what sort of business you run — a large global business or a local SME, credit ratings play a significant role in helping you secure loans. In fact, […]

Business Loan Getting A Business Loan Doesn’t Have To Be Hard. Read These 4 Tips.

Your business needs that extra funding to allow it to move forward. If you are unsure of which lenders to go to or how to approach them, the process of getting a business loan can be daunting. Borrowers often make the mistake of not doing thorough research on which lenders to approach or the types […]

Business Loan Business Loan In Singapore: All About Expansion Financing

If you own a small-medium enterprise (SME) business that has charted success in consecutive years, you might be thinking of scaling up your business further. The question is whether you have enough resources to see through your plan. This is where taking up a business loan in Singapore in the form of expansion financing could […]

Business Loan Business loan In Singapore: What Is A Bridging Loan And How Can It Help My Business?

What Is A Bridging Loan? A bridging loan is designed to help companies and individuals tide over a short period of financial challenge.  For companies, this is a type of business loan that can be used to increase working capital while waiting for longer-term financing to come in.  To individuals, a bridging loan usually applies […]

Business Loan Business Loan In Singapore: What Is Auto Financing – Car Flooring Loan?

Whether you’re a business owner in the automobile dealer industry or looking to start up your own auto dealership, you’d probably know how expensive inventory for automobiles is. Businesses that have to deal with such huge purchases usually take up business loans in Singapore to manage their inventory and showroom. For a business owner in […]

Business Loan How To Start A Business In Singapore: 6 Simple Ways To Get Funded

Are you a business owner? Do you own an SME in Singapore? Or perhaps you are thinking of finally launching your startup? There are many challenges when it comes to running a business. Businesses that have been around for an extended period of time could be thinking about expansion and growth. On the other hand, […]

Business Loan An SME Loan Broker In Singapore Vs A Direct Lender: Differences You Should Know

You might have an impending need for extra working capital in your business. As you research possible sources for a loan, you might have come across the services of an SME loan broker in Singapore. But what exactly is an SME loan broker? How can such a broker fit into your plan of getting a […]

Business Loan 5 Reasons Why Your SME Needs a Working Capital Loan

Utilities, staff salaries, inventory, equipment rental — these are just some aspects that make up day-to-day operational costs. To keep your business running, you first need to have enough capital to get it started. And this is perhaps the greatest challenge of most businesses. Working capital is, fundamentally, a term for having money on hand. […]

Business Loan How Does Getting An Sme Working Capital Loan Help My Business?

Taking a working capital loan in Singapore is common among SMEs. In short, a working capital loan is a specialised type of loan designed to help businesses cover daily operational costs.  Unlike other business loans, working capital loans generally do not need you to state the purpose of borrowing, as these loans are short-term and […]

Business Loan Everything You Need To Know About Getting A Working Capital Loan For Your SME In Singapore

It can be challenging running your own business. There are many hurdles SMEs often face — from administrative matters, ideas-generation, to finding enough money to fund your business. Many approach banks and private financiers for SME working capital loans in Singapore when facing such financial difficulties, especially during the initial phases. Working capital loans can […]

Business Loan How Much Should You Get For Your SME Working Capital Loan

If you’ve been following this space, you would know that we’ve been discussing what working capital loans are and how they can benefit SME businesses. Working capital loans help SMEs finance day to day operations and provide short term solutions to pressing challenges such as seasonal fluctuations and downturns. Perhaps your business needs to take […]

Business Loan 9 Things To Ask Before Getting A Business Loan In Singapore

Gone are the days when banks are the default go-to place in getting a business loan in Singapore.  Small and medium-sized enterprises (SMEs) these days have various options ranging from banks to private financial institutions that offer different types of business loans. As your business grows, it would most likely need more financing to expand […]

Business Loan 5 Common Misconceptions On Getting A Business Loan In Singapore

Thinking of striking it out on your own? Do you have big plans and an ambitious vision but don’t have enough capital yet? Getting a business loan in Singapore might just be the first step you need to take! Many business owners hesitate to take a business loan due to a range of reasons. It’s […]

Business Loan Why Your Business Loan In Singapore Might Have Been Rejected

There’s nothing more frustrating than to find out that your business loan application has been rejected.  Business owners look to banks and financial institutions to get business loans for a myriad of reasons. Whether it is to expand, innovate, or to cover day to day operations, having access to funds at the right time is […]

Business Loan 6 Reasons Why SMEs Take Business Loans In Singapore

In Singapore, 65% of the economy is made up of SMEs. From e-commerce startups to financial products, there are all sorts of SMEs in the Singapore market. With a high saturation of competitors in different markets, growing your business is extremely challenging in Singapore.  On top of stiff competition, SMEs also face the challenges of […]

Business Loan Avoid These 6 Mistakes When Applying For A Business Loan In Singapore

Starting a company can be a challenging feat. Not only must you have a good business idea, but you must also get enough capital. That’s not even considering all the countless administrative matters to handle. The first part, getting a good idea, is often already established when the company is founded. However, most companies struggle […]

Business Loan Business Loan Options Every Business Owner Should Know

Thinking of starting a business? Perhaps it has always been a dream to strike it out on your own? If that sounds like you, you are going to need a business loan.  Having enough capital will make a world of difference for your business which is why knowing where to get the best business loan […]

Business Loan SME Working Capital Loan: 6 Types Of Short Term Financing Options To Boost Your Working Capital

Running a business costs money. If you are an experienced business owner, you would know that it is not easy to run a startup in Singapore. From employees’ pay to inventory, or even just turning the lights on, the cost of day to day operations adds up. That is why loans are unavoidable when you […]

Business Loan Working Capital Loan For SMEs: 5 Essential Questions To Ask When Taking One

Have you ever considered taking a business loan to meet the financial needs of your Small and Medium Enterprise (SME)? If yes, you probably have heard of working capital loans for SMEs. In short, working capital is the money companies use for daily operational expenses. Managing your working capital properly can be challenging for an […]

Business Loan Digital Presence and E-Seller loans in Singapore

As the world is moving at a fast pace, the society is converting into a cashless society. People are more likely to be digitally active and doing business. Online selling and buying have become a new business market. The new generation is drawn towards the trend and soon the world will convert into a society […]

Business Loan 7 Ultimate Reasons Why Successful SMEs Get a Business Loan

Small and medium enterprises (SMEs) continue to be one of the biggest players in Singapore’s economy. Based on a survey conducted by SME Magazine, SMEs continue to grow amid economic difficulties. The data also showed that the average revenue increases by about 109% than the previous year. As SMEs increases in numbers, we have observed […]

Personal Finance How to Manage Your Finance?

Managing your finances is a very tedious task especially for the ones who don’t understand accounts and finance at all. Most of us, even the ones who have just stepped adulthood have a job. We may have our own startup, work in an MNC, or maybe a government employee. We are here to let you […]

Media CNA | The Entrepreneur 2019

This series celebrates the achievements of 10 businessmen and women who prove to have what it takes to break boundaries and emerge as winners of Singapore’s Entrepreneur of the Year Awards (EYA).

Media sgsme.sg | 10 Business Leaders Recognised as Entrepreneur of the Year

From training aspiring pilots to lending money, 10 local entrepreneurs received the Entrepreneur of the Year Award (EYA) 2019.

Media MoneyFM89.3 | The Breakfast Huddle

Find out how local firms are helping F&B SMEs scale their businesses.

Media The Business Times | CEO Conversation: Transforming into a Digital Financial Services Provider

Singapore-based Capital C Corporation has come a long way since the inception of its money lending arm in 2011.

Media e27 | The Case for Alternative Lending

In the last decade, we have witnessed rapid growth in the alternative lending space, with the creation of new business models opening up the range of alternative lending products available.

Media APAC CIO Outlook | How Fintech is Driving Innovative Lending

In Singapore, SMEs account for around two-thirds of the workforce and a large chunk of GDP growth.

Get Your Business Loan Now.

Apply now, and receive your business loan within 24 hours*.