Xfers is now Fazz Business. Read more

Comparison of The Best Business Loans in Singapore for 2024

26 January 2023

, posted by 

Aldean Moch Rafli


Financing is one of the means for business owners to grow their business. In order to gain fast and ample funding, business loans are an easy way to gain access to the cash needed to set the business on the right course. In fact, business loans are relatively low-risk for borrowers, including small businesses.

With the many available business loans in Singapore, it might get confusing to choose the most suitable one in terms of interest rates, approval times, and application process. Below is a comparison guide to all the best business loans on the market in Singapore.

Bank Loans

Bank loans are the most traditional loan type around. In general, banks are known to be selective and have a longer processing time for approving and disbursing funds, so they may not be the most ideal choice for small businesses. For loans up to 5 years, most banks in Singapore require businesses to have 2-3 years of operational history and at least 30% of shareholders have to be Singaporean PRs or citizens.

Standard Chartered SME Loans

Standard Chartered has various SME loans available, such as the Standard Chartered’s Business Instalment Loan, SME Working Capital Loan/WCL (jointly offered by Enterprise Singapore), and Temporary Bridging Loan (TBL). All of these have a first year annual fee that is at most 2% of your approved loan amount (minimum of S$400). For longer loan tenures, the annual fee for the subsequent years will be $100 per year. The repayment period is 12 to 60 months.

Here is a simplified breakdown of each of Standard Chartered’s SME loans:

Business Instalment Loan

o   Up to 11% interest rate

o   Up to $300,000 maximum loan

o   Up to 1 year – 3 years loan tenure

SME Working Capital Loan

o   Interest rate varies according to loan

o   Up to $3,000,000 maximum loan amount

o   Up to 1 year – 5 years loan tenure

Temporary Bridging Loan

o   Interest rate varies according to loan

o   Up to $20,000,000 maximum loan

o   Up to 1 year – 5 years loan tenure


DBS also has various SME loans to choose from according to your financial needs. They don’t charge any annual fees, although they still require a minimum of $500 processing fee.

Here is a simplified breakdown of each of DBS’ SME loans:

Business Term Loan

o   Up to 11% interest rate

o   Up to $800,000 maximum loan

o   1 year – 5 years loan tenure

SME Working Capital Loan

o   Up to 7% interest rate

o   Up to $300,000 maximum loan

o   1 year – 5 years loan tenure

SME Micro Loan

o   Up to 7% interest rate

o   Up to $100,000 maximum loan

o   1 year – 4 years loan tenure


Another business loan to look into is from UOB. They are known for offering competitive interest rates, however, their annual fee is generally higher than other banks.

Here is a simplified breakdown of each of UOB SME loans:

Temporary Bridging Loan

o   Interest rate from 2.75%

o   Up to $1,000,000 maximum loan

o   1 year – 5 years loan tenure

SME Working Capital Loan

o   Interest rate varies according to loan

o   Up to $300,000 maximum loan

o   1 year – 5 years loan tenure

BizMoney Loan

o   Up to 10.88% interest rate

o   Up to $350,000 maximum loan amount

o   1 year – 5 years loan tenure

Equity Financing

Besides traditional banks, another source of business loans that you can consider is equity financing. In equity financing, a business sells shares of its ownership to investors in exchange for financing. SMEs might choose this route and sell their shares of equity under certain conditions. For example, they might not have sufficient operating history, they do not qualify for bank business loans, and/or the interest payments of a loan are cost prohibitive. Two examples of equity financing are from FundedHere and Fundnel.


FundedHere is a Singapore-based equity and lending-based crowdfunding platform which facilitates funding and venture debt. Borrowers are allowed to keep the funds if they raise more than the target.

Here is a simplified breakdown about FundedHere:

o   6% platform fee

o   2% fee on the total equity raised

o   Up to S$1,000,000 maximum loan amount


Another equity financing platform is Fundnel. It is more recommended for small business owners who do not need the cash immediately as they have a disbursement time of 60-90 days. Just like FundedHere, business owners can also keep more than their initial target.

Here is a simplified breakdown about Fundnel:

o   5% platform fee

o   3-5% fee on the total equity raised

Government-Backed Loans

Business owners can also consider getting loans from Singapore’s government, who has committed S$2 billion for SME loans. The eligibility requirements for government-backed loans are set by the government, while the interest rates by banks.

Enterprise Singapore

Enterprise Singapore offers loans for Singapore-registered companies with 30% local shareholding. Applicants must have annual sales of S$100m or less or group employment size of 200 or fewer.

SME Micro Loans

Companies with 10 or fewer employees or sales of less than S$1 million may apply for the SME Micro Loans. With a maximum amount of S$100,000, these loans can fund daily operations and equipment upgrades for growing SMEs.

SME Fixed Assets Loans

The SME Fixed Assets Loans offer a maximum loan of S$30 million for SMEs to purchase equipment and machines, as well as new or resale assets. These loans also allow for the construction or purchase of government and commercial built factories and business premises, as well as new or resale assets.

Alternative Financing

Another option for small business owners is alternative financing from Fazz Business. Compared to all other business loans above, the process of applying for a Fazz Business Loan is easy and seamless, as you only need 3 documents for approval. For both of these loan types, there is a processing fee applied.

Fazz Business Loan

To grow your business to the next level, you can apply for a Fazz Business Loan without any collateral. Get a maximum loan of S$300,000 with 6-12 months tenure. The interest rate starts at only 1%. Depending on your changing business needs, you can also decide to change to a revolving credit line.

Fazz Revolving Credit Line

A revolving credit line is an agreement that allows you to borrow money repeatedly up to a set limit while repaying the current balance due in regular payments. With Fazz Revolving Credit Line, borrowers get credit on demand without any hidden costs. With flexible repayment, you can pay at your own pace. The interest rate is as low as 2% per month depending on your credit assessment, and the validity period is 12 months. 

Business Loan FAQs

What is a reasonable interest rate for a business loan?

Business loan interest rates in Singapore range from between 1-13% per annum, with different rates and terms according to the borrower and their terms.  However, the most reasonable average business loan interest ranges between 3.5% to 7%.

How much can I get for a small business loan?

For small businesses, the typical loan value range is between S$300,000 – S$1,000,000.

Is it hard to get a small business loan?

The level of difficulty in applying for a business loan depends on your cash flow, how long your business has operated, and loan amount. As long as you can prove through your documents that your business can repay the loan, it is relatively easy to get a small business loan.

How to compare SME loans?

To find the most suitable loan for your small business, choose one that matches your business’s needs. Compare the interest rates, fees, and the loan durations. Be sure to choose the loan with the lowest total cost to your business, which means a loan with lower interest rates, a realistic tenor, and low fees.

For example, to avoid the long processing time and higher interest rates from traditional borrowers, small businesses may consider an alternative lender such as Fazz Business. There is also no collateral required, which offers more peace of mind for small business owners.

How long does it take to apply for a business loan?

Business loans typically take about 2 weeks to process. Generally, banks might take longer due to the high volume of loan applications they receive.

Grow your business with a Fazz Business Loan

If you are looking for a fast, secure loan for your small business with low interest rates and quick approval, get a Fazz Business Loan. Accelerate your business growth with ready access to working capital. Our daily interest rate starts as low as 0.05% and you can get your business approved within 48 hours. Apply for a Fazz Business Loan here to build, run and grow your business with peace of mind today!


Reach out to unlimit your business

Where is your business registered?

Account you would like to open?

© 2023 FAZZ, Inc.

Fazz is a trading name for the following businesses that hold applicable payment business in Indonesia and Singapore.

Browse by product