In this comprehensive SME financing guide, one will find useful information on how to secure a business loan for SME in Singapore. One can compare over twenty different banks and financial institutions that provide instant funding to the small or medium scaled enterprises.

How to get a small-to-medium enterprise business loan in Singapore?

Singapore is the home to small-to-medium sized institutions. Many small and medium enterprises go for funding to run the daily operations of their businesses.  It is said by the market researchers that the best time to apply for SME financing is when they can prove they don’t need it.  It is always recommended to plan ahead and start initiating the loan applications when the company is in the best financial shape.

Where to apply for SME financing in Singapore?

Banks

Banks are the first place where any business owner must go to in order to seek a financial loan.  Banks are well-regulated and structured; therefore they provide all forms of SME financing instruments. Business loans from banks are the cheapest financing option for business owners.  If the company has sound and strong finances, a business loan from banks is the best choice.

Financial institutions

Financial institutions provide unsecured business loans and focus on asset-based lending.

Alternative lenders

Alternative lenders are generally small scale operators and serve a niche market.  These lenders are usually private lenders who lend money directly to SMEs.  Private lenders could be found online operating as direct lenders.  These lenders are generally considered a last resort to SMEs.