Speed
Some providers offer faster digital applications and lighter documentation.
Non-bank and fintech options
Alternate Financing
Alternative financing can help Singapore businesses access working capital when a traditional secured loan, bank term loan, or standard trade facility is not the best fit. The right structure depends on revenue profile, invoices, payment channels, investor backing, operating history, and urgency.
Comparison guide
Alternative Routes for SME Financing
Alternative financing providers may assess a company using invoices, platform sales, payment receipts, recurring revenue, venture capital backing, or transaction history, instead of relying only on property collateral or traditional bank credit models.
Flexibility
Repayments may be tied to invoices, sales receipts, or revenue performance.
Cost and Fit
Effective cost can be higher than bank loans, so structure matters.
Debt crowdfunding
1. Peer-to-Peer (P2P) Lending and Debt Crowdfunding
P2P lending platforms connect SMEs seeking capital with investors who fund business loans through a marketplace structure. In Singapore, lending-based crowdfunding platforms that deal in capital markets products are generally expected to hold the relevant MAS licence.
How it works
The business borrows a lump sum and repays it with interest over a fixed term, similar to a term loan, but funding may come from multiple investors.
Best for
Unsecured working capital, bridging needs, and SMEs with shorter operating track records where traditional bank appetite may be limited.
Example providers include Funding Societies, Validus, and BRDGE, formerly SeedIn.
Receivables funding
2. Invoice Financing and Factoring
Invoice financing helps businesses unlock cash tied up in unpaid invoices instead of waiting 30, 60, or 90 days for customers to pay. This can overlap with trade finance facilities such as sales invoice financing.
How it works
A financier advances a percentage of the invoice value, often around 70% to 90%. When the customer pays, the remaining balance is released after fees and charges.
Best for
B2B companies with confirmed invoices, reliable customers, and cashflow pressure caused by long payment terms.
Example providers include Validus, Incomlend, Funding Societies, and banks with factoring or receivables finance facilities.
Sales-linked repayments
3. Revenue-Based Financing (RBF)
Revenue-Based Financing provides upfront capital with repayments linked to a fixed percentage of gross revenue until an agreed repayment cap is reached. The model is usually positioned as non-dilutive funding because the business does not give up equity.
How it works
Repayment adjusts with revenue. Slower sales periods can mean lower repayment amounts, while stronger sales can repay the facility faster.
Best for
E-commerce, SaaS, digital, retail, and other businesses with visible, recurring, or platform-tracked revenue.
Example providers include Jenfi and Choco Up.
App-based banking
4. Digital Bank and Neo-Bank Loans
Digital banks and app-based financing providers can offer online onboarding, faster credit assessment, and loan products targeted at micro-SMEs and smaller businesses. Some use transaction history, platform sales, or digital account data to support underwriting.
How it works
Applications are usually completed online or in-app, with loan approval subject to eligibility checks, data access, credit policy, and account requirements.
Best for
Businesses that need a faster digital process, smaller facilities, or working capital without a fully traditional branch-based application.
Example providers include ANEXT Bank, MariBank, and GXS Business Banking. Availability depends on business structure, eligibility, and the provider's current product scope.
Startup runway extension
5. Venture Debt
Venture debt is designed for high-growth startups that have usually raised institutional venture capital. It can extend runway, fund expansion, or bridge the company to the next equity round while reducing immediate equity dilution.
How it works
The startup receives debt capital, often alongside covenants and sometimes warrants or equity-linked upside for the lender.
Best for
Fast-growing technology companies that already have credible institutional investors, growth traction, and a clear funding plan.
Example providers include Genesis Alternative Ventures and InnoVen Capital.
POS and card sales funding
6. Merchant Cash Advance (MCA)
A Merchant Cash Advance provides a lump-sum advance against future sales receipts. It is commonly associated with retail, F&B, e-commerce, and service businesses that receive regular card, QR, or digital payment collections.
How it works
Repayment is deducted as a percentage of daily or periodic merchant sales until the advance and fees are cleared. Repayment speed can rise or fall with sales.
Best for
Retailers, restaurants, and consumer-facing businesses with meaningful POS or digital payment receipts but limited access to standard bank facilities.
Need to compare against bank loans?
Consult with MortgageLogic Advisory
We can help review your cashflow, invoices, payment channels, property position, and business profile before shortlisting suitable traditional or alternative routes.
Contact usNo-obligation assessment
Documents Required
Please prepare the following documents so we can evaluate your eligibility.
- Latest 6 months' corporate bank statements
- Latest 2 years' financial statements or latest management accounts
- Latest ACRA business profile
- Copy of NRIC for directors and guarantors
- Latest 2 years' Notice of Assessment for directors and guarantors
- Sales invoices, purchase orders, customer statements, or contracts where applicable
- Platform sales, POS, payment gateway, e-commerce, or SaaS revenue reports where applicable
- Existing facility letters and repayment schedules, if any
