Use of Funds
Common uses include financing growth, purchasing assets, expanding operations, renovation, and other business-related expenses.
Business financing
Business Term Loan
A Business Term Loan gives Singapore companies access to structured capital for defined business needs such as growth, asset purchases, operational expansion, renovation, or other business-related expenses.
Flexible business capital
What is a Business Term Loan?
A Business Term Loan is typically an in-house loan offered by banks and financial institutions to businesses. It provides a lump-sum facility that is repaid over a fixed period, making it suitable when a company needs predictable financing for a specific purpose.
A term loan may be considered when an SME is looking for a higher loan quantum, or when the S$500,000 SME Working Capital Loan limit under Enterprise Singapore has been fully utilised.
Loan structure
Key Loan Features
Repayment Tenor
Business term loans usually have fixed repayment tenors ranging from 1 to 5 years.
Interest Rates
Interest rates are generally slightly higher than SME Working Capital Loans, commonly ranging between 7% to 12% flat per annum depending on the bank and company profile.
Assessment readiness
Business Term Loan Requirements
To qualify for a business term loan, businesses typically need to show a stable financial history, clear repayment ability, and a credible business purpose for the loan. Banks may also review the company's cashflow, directors' profiles, existing obligations, and available financial documents.
Ready to compare options?
Consult with MortgageLogic Advisory
Speak with us to assess your funding needs, understand likely bank requirements, and make a more informed decision about a Business Term Loan.
Contact usNo-obligation assessment
Documents Required
Please prepare the following documents so we can evaluate your eligibility.
- Latest 6 months' bank statements
- Latest 2 years' financial statements or latest management accounts
- Copy of NRIC for all directors and guarantors
- Latest 2 years' Notice of Assessment for all directors and guarantors
