Speed
Some providers offer faster digital applications and lighter documentation.
Non-bank and fintech options
Alternative Financing Singapore - P2P, Invoice, Revenue-Based & Digital Bank Loans
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
FAQ
FAQ About Alternative Financing in Singapore
What are my options if my SME bank loan was rejected in Singapore?
A bank rejection does not mean you have no financing options. Alternative financing in Singapore has grown significantly, and several routes may still be available depending on your business type, revenue pattern, and what assets or invoices you hold. P2P lending platforms such as Funding Societies and Validus can provide SME working capital without the same collateral requirements as traditional banks. Invoice financing can unlock cash from unpaid receivables if your business holds confirmed B2B invoices. Revenue-based financing from providers like Jenfi or Choco Up suits e-commerce and SaaS businesses with recurring revenue. Digital banks may offer faster, lighter-touch assessment for smaller facilities. The most important step after a rejection is to understand why the bank declined so the right alternative can be matched to your situation.
How does P2P lending work for Singapore SMEs and is it safe?
P2P lending in Singapore connects businesses seeking capital with investors through a marketplace platform. Platforms that deal in capital markets products are generally regulated by MAS and must hold the relevant licence. For borrowers, the process typically involves an online application, document submission, and a credit assessment by the platform. Common Singapore P2P lending providers include Funding Societies, Validus, and BRDGE. P2P loans are generally unsecured, process faster than bank loans, and suit SMEs with shorter operating histories - but effective interest rates can be higher than bank term loans.
What is invoice financing and how does it help Singapore businesses?
Invoice financing in Singapore allows businesses to unlock cash tied up in unpaid invoices rather than waiting 30, 60, or 90 days for customers to pay. A financier advances a percentage of the invoice value - typically 70% to 90% - when the invoice is issued. When the customer settles, the remaining balance is released after deducting fees. This is particularly useful for B2B businesses that serve creditworthy customers but have long payment terms that strain day-to-day cash flow. Providers include Validus, Incomlend, Funding Societies, and certain banks with receivables finance or factoring facilities.
Is revenue-based financing available for Singapore businesses and how does it work?
Revenue-based financing (RBF) in Singapore provides businesses with upfront capital in exchange for a fixed percentage of future gross revenue until an agreed repayment cap is reached. Unlike equity funding, RBF does not require giving up shares. Unlike a term loan, repayment adjusts with revenue - slower sales months mean lower repayments. RBF is particularly suitable for e-commerce, SaaS, retail, and digital businesses with visible, recurring, or platform-tracked revenue. Providers active in Singapore include Jenfi and Choco Up.
What is the difference between P2P lending and a bank loan for a Singapore SME?
Bank loans - particularly EFS-backed facilities - generally carry lower interest rates (7-10% flat p.a.) and higher loan quantum limits (up to S$500,000 for the SME working capital loan), but the assessment process is more rigorous. P2P lending platforms assess businesses based on alternative data and disburse funds faster, often within days, but rates tend to be higher and maximum loan sizes may be lower. P2P financing is often a bridge - useful when timing is critical or bank eligibility is not yet established - rather than a long-term primary facility.
Can digital banks in Singapore provide working capital loans for small businesses?
Yes. Digital banks in Singapore offers business financing products targeted at micro-SMEs and smaller businesses that prefer a digital-first application process. These banks use transaction history, digital account data, and platform-based revenue information to assess creditworthiness, which can make them more accessible for businesses with shorter operating histories. They are generally a good option for smaller, faster-access facilities but may not replace a full banking relationship for businesses with larger or more complex financing needs.
