Working Capital Loan
Working Capital Loan

One of the hardest parts of running a business is funding it. To help cover everyday expenses, companies can consider taking up a working capital loan.

These are either government-assisted or in-housed bank loans.

How it works:

  1. You receive a lump-sum cash upfront, payable over 3 to 5 years, depending on the loan agreement
  2. Every month, you pay your loan installment via GIRO or fund transfer


Based on a loan of $100,000, your monthly commitment can be as low as $1933, payable over 5 years. Click here to see a detailed loan schedule.

Key Benefits

Government assisted loan has a maximum limit of S$500,000 from 1 October 2022 – 31 March 2023.

You can consider taking an in-house bank loan should you require a loan more than this amount.

Loan can be stretched to a maximum of 5 years.

Bank usually assess how much bank can loan based on the monthly installment.

Hence, a longer loan tenure usually qualifies the borrower a larger loan amount.

Interest rate varies depending on the lenders's cost of financing and financial profile of the borrower.

Typically, it ranges from 3% to 4% (simple interest) or 6% to 8% (effective rate) for government-assisted and 4% to 5% (simple interest) or 8% to 10% (effective rate) for in-housed loans.

Borrowers of government-assisted loans enjoy the flexibility to early redeem their loans with no penalty fees.

Interests will be prorated.

Greater savings!

Risk share is at 50%. Young enterprises2 may receive a risk share of 70%.


Who can apply:

  • Local company, registered and physically present in Singapore
  • At least 30% Singapore or PR shareholding
  • Annual revenue of the company not more than S$100 million or not more than 200 employees

  • Documents required to apply:

  • Latest 6 months bank statement
  • Latest 2 years Audited / Unaudited financials or latest management accounts
  • Copy of NRIC for all directors and guarantors
  • Copy of last 2 years Notice of Assessment for all directors and guarantors

  • How long does it take to approve?

  • It can be approved as fast as 1 week.
  • However, please don't apply at the very last moment. It will be wise to allow 1 month for the loan application process.
  • Apply early. Do not wait for your financial situation to deteriorate as loan eligibility depends on the financial health of the company.
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