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Guide to Qualifying for a Business Loan in Singapore | 2025 Guide

Getting a business loan in Singapore can unlock growth opportunities for SMEs and startups. Whether you need working capital, funds for expansion, or financing for new equipment, the right loan can help you move forward with confidence.

Here’s the challenge though: Many applications are delayed or rejected because business owners don’t understand the loan requirements, essential documents, or what lenders really look for.

This guide explains step by step how to qualify for a business loan in Singapore, with a document checklist and practical tips to improve your approval odds.

Business Loan Requirements in Singapore: The Basics

Most lenders in Singapore follow similar eligibility rules. To qualify, you’ll need to meet these common requirements:

ACRA Registration: Your business must be legally registered in Singapore.

Business Tenure: Typically at least 6 months to 3 years of operations.

Annual Revenue: Minimum turnover ranges from SGD 100K to 1M, depending on the lender.

Local Shareholding: For government-assisted loans (e.g. Enterprise Financing Scheme), at least 30% of shares must be Singaporean-owned.

What Lenders Look at Before Approving Your Loan

Meeting the basic criteria is only the first step. Banks and financial institutions will also evaluate:

Cash Flow & Repayment Ability: A Debt Service Coverage Ratio (DSCR) above 1.25 shows you can manage repayments.

Profitability & Growth Trends: Stable or rising profits give lenders confidence.

Credit History: Both company and personal credit scores affect approval.

Industry Risk: Sectors like F&B or construction may face stricter reviews.

Collateral & Guarantees: Many unsecured loans require a director’s personal guarantee; large loans may also need collateral.

Tip

Even if profits are modest, strong cash flow and clean credit conduct can help secure approval.

Business Loan Document Checklist in Singapore

A missing or incomplete document can stall your application. Here’s a loan checklist most lenders follow:

Core Documents

ACRA BizFile / Business Profile

NRIC or Passport of directors/shareholders

Notice of Assessment (last 2 years)

Audited or management financial statements (past 2 years)

Bank statements (latest 3–6 months)

Additional Documents (if requested)

GST Returns (Form F5 – last 4 quarters, if applicable)

Debtors & creditors ageing lists

Credit Bureau reports

Business plan or company profile (especially for startups)

Existing loan details or repayment schedules

How to Apply for a Business Loan in Singapore: Step-by-Step

The loan process can be simple if you prepare in advance. Here’s what to expect:

Get Ready: Review eligibility, organize financials, and prepare documents.

Compare Options: Check bank loans, government schemes like the SME Working Capital Loan, and non-bank alternatives.

Submit Application: Many banks (e.g., DBS, OCBC) now allow online submissions with automatic ACRA data retrieval.

Follow Up: Be prepared to provide more documents or host a site visit.

Approval & Funding: Review loan terms carefully before signing. Funds are usually released within a few business days.

Alternatives if You Don’t Qualify for a Bank Loan

If traditional banks reject your application, you may wish to consider these options:

Government Schemes: Enterprise Financing Scheme (SME Working Capital Loan) with partial risk-sharing.

Non-Bank Lenders & Fintechs: Faster approval, more flexibility, higher interest rates.

Invoice Financing / Factoring: Convert unpaid invoices into working capital.

Peer-to-Peer (P2P) Lending: Connect directly with investors

Frequently Asked Questions (FAQs)

How long must my business operate before applying?

Usually 1–2 years, though fintech lenders may accept 6 months.

Can I get a loan with poor credit?

Yes, but expect stricter terms. Collateral or guarantors may be required.

Do startups qualify for loans?

Traditional banks rarely lend to startups, but government schemes, P2P lending, or invoice financing are viable alternatives.

How much can I borrow?

Loans range from SGD 50K to several million, depending on lender and loan type.

Do I always need collateral?

No. Many loans are unsecured, but personal guarantees are common.

Prepare Wisely to Secure Business Financing

Qualifying for a business loan in Singapore isn’t just about submitting forms. It’s about proving you’re a reliable borrower.

Here’s the formula for success:

Meet the baseline requirements (registration, tenure, revenue).

Prepare a complete document checklist.

Strengthen cash flow and credit before applying.

Explore alternative financing if needed.

Ready to secure the right financing for your business? Our team of experienced business loan advisors at Plutus will guide you through eligibility checks, document preparation, and lender comparisons, saving you time and boosting your approval odds.

Contact us today to unlock smarter, faster funding solutions.