Startup Business Loan

STARTUP BUSINESS LOAN

Small Business Startup Loans in Singapore

Quick Jump To…

At a Glance

Pros & Cons

Who Can Qualify?

Cost

How It Works

[icon_box border=”1″ title=”What is a Startup Business Loan?” image=”2604″]

A startup business loan is basically funding for startup businesses. Learn more about small business startup loans below.

[/icon_box]

[icon_box border=”1″ title=”How Do I Qualify?” image=”2605″]

Disclaimer: These are general qualifications. Other information might be considered during your application.

[/icon_box]

[icon_box border=”1″ title=”How Do I Apply?” image=”2606″]

Startup business loans in Singapore are usually offered by alternative lenders. Apply for multiple options with Capable Loans.

Apply Here a Startup Business Loan

[/icon_box]

Startup Business Loans at a Glance

If you are an emerging business startup, or a medical professional looking to setup your own private practice, you will find that your business qualifies for a variety of small business startup loans. While government-assisted loans such as SME micro loans are still an option, you might want to explore other ways to finance your startup business.

[icon_box border=”0″ title=”Maximum Loan Amount” image=”2619″]

Up to S$300,000

[/icon_box]

[icon_box border=”0″ title=”Loan Term” image=”2623″]

6 months to 2 years

[/icon_box]

[icon_box border=”0″ title=”Interest Rates” image=”2624″]

2.8 – 4.5% per annum

[/icon_box]

[icon_box border=”0″ title=”Speed” image=”2625″]

As fast as 2 weeks

[/icon_box]

The Pros and Cons

Good for fresh businesses with little financial history

Low interest rates

Requires for director(s) to have good credit history

Limited to specific industries only

Apply for the Best
"Startup Business Loan"
with Capable Loans Today!

Compare All Loan Types...

Loan Type

Speed

Interest Rates

Micro Loan

2 – 3 weeks

3.2 – 4.5% per annum

Personal Loan for Business

3 – 7 days

4.4 – 6.88% per annum

Trade Financing

2 – 4 weeks

2.3 – 2.8% per annum

Equipment Financing

2 – 3 weeks

2.8 – 3.2% per annum

Crowdfunding

1 – 3 weeks

12 – 16% per annum

Business Term Loan

2 – 3 weeks

5 – 7% per annum

Short-Term Loan

1 – 2 weeks

7.8 – 12% per annum

Who Qualifies for a Small Business Startup Loan?

As you might guess, many young and new businesses can qualify for a small business startup loan.

Since you won’t have a lot of revenue history, the most important factor to lenders will be your personal credit score:

The higher the score, the better your chances of qualifying.

What Documents Do I Need to Apply?

Bank Statements

Profit & Loss Statements

Balance Sheet

Income Tax Returns

Identification Card (NRIC) / Copy of Passport

[blockquote]

“Startup business loans are risky. But remember that startups hold great potential.”

[/blockquote]

See What Loans You Qualify For

How Do Small Business Startup Loans Work?

As a business owner just starting out, researching different financing methods and products can be perplexing or disheartening.

To make things easier for you, listed below are some small business startup loans for you to check out and make an informed decision.

1. Startup Equipment Financing

For many startup businesses, it cannot start generating revenue without having hard assets such as transportation vehicles, manufacturing equipment, furniture or commercial tools.

If you do not want to give up equity of your business in return for an initial investment, the recommended method of financing your business is through debt financing, in this case specifically equipment financing.

Through equipment financing you will be able to obtain a loan of up to 80% or 90% of the equipment’s value. This equipment will be used as collateral, which allows financial institutions to recoup their losses by selling the equipment in the case of a default on the loan.

Having a collateral means lower interest rates and possibly longer loan tenures, giving you enough time to generate enough revenue to pay off the equipment.

Applying for Startup Equipment Financing

Aside from the basic eligibility criteria, you will also need to source the equipment that you will be purchasing with a quote from the supplier, along with an explanation of operational usage of the equipment.

2. Startup Funding for Doctors / Medical Professionals

If you are a medical professional planning to open a new dental clinic or expanding your private clinic, a great option is to get financing with product specifically tailored for medical professionals.

When starting up a healthcare business, you will need funds to purchase medical equipment or to pay for renovation works. There are financing products offered by a few banks that provide dedicated doctor financing, with better understanding of the industry.

Why Look for Startup Funding for Doctors?

Simply applying for various equipment financing or renovation loan products might not be ideal for medical professionals, as the terms of business loans are not very flexible.

An industry-focused financing catered to your interests will almost always be the better option, allowing you to improve your cash flow and seize expansion opportunities.

Applying for Doctors’ Financing

Since financing for doctors is quite a niche category, not every bank will offer business loans specifically focused towards doctors and medical professionals.

Our recommendation is to let us handle the hassle of researching and reaching out to the financial institutions, while you can work on sourcing the medical equipment or contractors for renovation.

3. Crowdfunding for Small Business Startups

If you have a startup business concept that is innovative in nature, you might want to consider a reward-based crowdfunding campaign to raise funds for your startup while keeping equity in check.

A popular crowdfunding platform example is Kickstarter, where startup businesses put out crowdfunding campaigns along with tiered rewards given to contributors who commit a certain amount.

There are various crowdfunding platforms in Singapore as well, and many of them also offer crowdfunded debt financing for small startup businesses.

Benefits of Crowdfunding for Small Business Startups

Crowdfunding is a cost-effective way to not only raise funds for your business, but to also market your business model / product to an international audience. As a bonus you will also be able to obtain valuable market feedback from contributors.

By judging investor interest via crowdfunding, you are able to estimate market interest of your product or business before actually executing your business strategy. You can find out more about crowdfunding on your website (link)

Apply For the Best SME Working Capital Loans
with Capable Loans Today!

What Are the Costs of a Small Business Startup Loan?

1. Startup Equipment Financing

While the interest rates for equipment financing differs for each financial institution, you can expect effective interest rates (EIR) between 5.2% – 8% per annum.

Some banks might also offer a flat interest rate. Loan tenures can range anywhere from 1 to 8 years or even longer depending on the nature of the equipment.

2. Startup Loan for Doctors / Medical Professionals

Depending on the nature of your loan, you can either expect rates similar to a business term loan of 9% – 11% per annum, or rates similar to equipment financing between 5.2% – 8% per annum.

If you are looking to financing a purchase of property such as a medical clinic, the rates would be similar to a commercial property loan between 1.2% – 2.5% per annum.

3. Crowdfunding for Startups

With reward-based crowdfunding, your cost will be whatever fees the crowdfunding platforms charges, along with whatever payment processing fees that you have to bear. Altogether it is usually between 5% – 9% of the total funds raised through the platform.

If you are looking to get a crowdfunded business loan, interest rates are range from 9% to 14% per annum depending on the platform you apply for.

Although it seems costlier than a business term loan, the eligibility criteria is much easier to meet and you can gain beneficial information for your business startup.

Ready To Grow Your Business?

It’s FREE – $0 Upfront Cost, No Obligation