Compare Business Term Loans

Compare rates from 14+ lenders or skip straight to a personalized match

7-18% Rate range p.a.

1-14 Days to funding

S$500k Max loan amount

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S$100,000

S$10,000 S$500,000

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Editor's NotesOptional background reading — skip if you just want the comparison

The cheapest business loan in Singapore is not always the cheapest money you can actually use.

A bank term loan at 8% or 9% looks obviously better than a fintech facility at 14%, until you remember that payroll lands next week, your supplier wants payment before releasing stock, and the bank still needs another round of documents. That gap between pricing and timing is where a lot of SME owners get stuck.

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Most unsecured SME term loans from local banks sit around 7% to 11% a year on an effective basis, with many offers clustering between 8% and 10.88%. Fintech lenders, including platforms such as Funding Societies and Validus, usually land somewhere between 12% and 18% a year once you translate the pricing properly. That spread matters. On a S$100,000 loan, the difference between 9% and 15% is roughly S$6,000 a year, which is about a month of wages for a junior hire plus CPF employer contributions.

Still, rate is only one part of the decision, and not always the deciding one.

Banks usually take 2 to 4 weeks to approve an SME loan. If your business has clean financials, steady revenue, and time to wait, that lower pricing is worth chasing. A fintech lender can approve in 24 to 72 hours, sometimes on the same day, which is a very different product even if both options get labelled “working capital”.

That distinction gets clearer when cash flow is under pressure. If an importer needs S$80,000 this week to secure inventory ahead of a festive sales period, missing that stock order can cost more than the extra interest on a faster loan. I get why this appeals to people. Paying 5 or 6 percentage points more is painful, but losing a strong sales month is usually worse.

Where owners get into trouble is comparing headline rates instead of EIR, which is the effective interest rate after fees and repayment structure are accounted for. Some fintech lenders quote monthly flat rates because they sound tidy. They are not tidy. A 1% monthly flat rate works out to roughly 18% to 20% EIR a year. At 1.5% a month, you are closer to 27% to 30% EIR, which on S$100,000 is S$27,000 to S$30,000 over a year, about the cost of fitting out a small office or kiosk.

Banks are not innocent here either, because a lower headline rate can still come with processing fees, annual fees, or balance requirements that lift the real borrowing cost. As far as I can tell, the only sensible way to compare term loans is to ask every lender for the EIR, total fees in dollars, monthly instalment, and whether there is any penalty for early repayment.

Documentation is another separating line. A bank may ask for 2 to 3 years of audited financials, 6 to 12 months of bank statements, GST filings, and director NRIC and tax documents. That is manageable for an established company with proper accounts. It is a headache for a younger business that has decent sales but thinner paperwork. Many digital and alternative lenders will work mainly from bank statements and transaction data, which explains part of the pricing premium.

Operating history matters too. Banks often want 1 to 2 years of trading history. Some digital lenders are willing to look at businesses with only 6 months of operations, which makes them relevant for newer firms that would not get through a bank credit screen anyway.

Then there is EFS, and this is worth checking before you sign anything. The Enterprise Financing Scheme SME Working Capital Loan cap was permanently raised to S$500,000 per borrower from 1 April 2024 under Budget 2024. For a neighbourhood distributor or services firm, S$500,000 is not abstract, it is several months of payroll through a slow patch. The government risk share is 50% for most SMEs. Young enterprises may qualify for 70% if they were formed within 5 years, are more than 50% individually owned, and employ at least one person. You also need to meet the usual local shareholding rules, including at least 30% Singaporean or PR ownership.

For most Singapore SMEs, the practical order is fairly simple. Start with banks if you qualify, have at least a couple of weeks, and can produce the documents cleanly. Check EFS before accepting a standard unsecured offer. Use fintech lenders when speed is genuinely valuable, your operating history is short, or the bank process will miss the commercial window that actually matters. Then compare EIR, not marketing copy, because “fast approval” is useful and “low from” rates are not the same thing as affordable debt.

View by type: Banks Fintech Digital Banks EFS Only

Lender	Product	Amount	Tenor	Rate	Fees	Speed	EFS	Action
DBS Bank	Business Term Loan	S$20,000–S$500,000	12–60 mo	7.0%–11.0% p.a.	min S$500	3-5 days	EFS	Details
DBS Bank	SME Working Capital Loan (EFS)	S$20,000–S$500,000	12–60 mo	7.0%–9.0% p.a.	min S$500	5-10 days	EFS	Details
DBS Bank	SME Micro Loan	S$10,000–S$100,000	12–48 mo	8.0%–11.0% p.a.	min S$300	3-5 days	EFS	Details
OCBC Bank	Business First Loan	S$20,000–S$100,000	12–48 mo	7.8%–11.0% p.a.	1%	1-3 days	EFS	Details
OCBC Bank	Business Term Loan	S$50,000–S$700,000	12–60 mo	7.5%–10.0% p.a.	1%	3-7 days	EFS	Details
OCBC Bank	Short-Term Financing	S$50,000–S$800,000	0–0 mo	7.2%–10.0% p.a.	1%	3-5 days	–	Details
UOB Bank	BizMoney Loan	S$20,000–S$350,000	12–60 mo	7.0%–10.9% p.a.	1.5%	1-3 days	EFS	Details
UOB Bank	SME Working Capital Loan (EFS)	S$20,000–S$500,000	12–60 mo	7.0%–9.0% p.a.	1%	5-10 days	EFS	Details
Standard Chartered	Business Instalment Loan	S$70,000–S$500,000	12–36 mo	9.0%–15.0% p.a.	2% / min S$400	5-14 days	EFS	Details
Standard Chartered	SME Working Capital Loan (EFS)	S$50,000–S$3,000,000	12–60 mo	7.0%–11.0% p.a.	1%	10-21 days	EFS	Details
GXS Capital	Working Capital Loan	S$50,000–S$500,000	3–18 mo	0.7%–1.0%/mo ≈8%–12% p.a.	2.5%	1 days	–	Details
Funding Societies	Micro Loan	S$5,000–S$150,000	1–12 mo	1.0%–4.0%/mo ≈12%–48% p.a.	3.5%	1 days	–	Details
Funding Societies	Business Term Loan	S$50,000–S$1,000,000	6–36 mo	1.0%–1.5%/mo ≈12%–18% p.a.	3.5%	3-7 days	–	Details
Bizcap	Working Capital Loan	S$5,000–S$500,000	3–6 mo	1.30–1.40 factor Varies by term	None	1 days	–	Details

Some lenders quote monthly or factor rates. We show approximate APR conversions for comparison. Actual rates depend on your credit profile. Use our calculator →

How to Choose a Business Loan

If you need the lowest cost:

Start with EFS-backed bank loans (DBS, OCBC, UOB). These offer 7–9% p.a. with government risk-sharing. Requires 2+ years operating history, 30% local ownership, and solid financials.

If you need funds urgently:

Consider fintech lenders (GXS Capital, Funding Societies, Bizcap). Approval in 24–72 hours but at higher rates (12–18% p.a. or 1–4% monthly). Lighter documentation.

If you are a startup or new company:

OCBC Business First Loan accepts 6–12 months history. Digital banks (GXS) and fintech are more flexible on track record but with smaller limits. See also startup funding options and company & corporate loans.

If you were rejected by banks:

Bizcap specialises in bank turn-downs. Higher cost (factor 1.3–1.4 for 3–6 months) but approves based on cash flow, not credit score.

Frequently Asked Questions

What documents do I need?

Banks typically require 2 years of financial statements, 6 months of bank statements, ACRA business profile, and directors' IC. Fintech lenders often need just 6 months of bank statements.

Do I need collateral?

All products on this page are unsecured. However, most require a personal guarantee from directors. Jenfi (revenue-based) typically does not require a personal guarantee.

What is EFS?

The Enterprise Financing Scheme is a government programme where Enterprise Singapore shares 50–70% of default risk with lenders. This enables lower rates and higher approval chances.

How is EIR different from flat rate?

Effective Interest Rate (EIR) accounts for how interest is charged over the loan term. A 7% flat rate on a 3-year loan might equal ~13% EIR. Always compare EIR, not flat rates.