Working Capital Loan


Government Assisted Financing Scheme

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At a Glance

Pros & Cons

Who Can Qualify?


How It Works

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The SME Working Capital Loan is a financing scheme to help business get easier access to funding. The maximum loan amount goes up to S$300,000, with a repayment period of up to 5 years.


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  1. 6 months in business
  2. 30% local shareholding
  3. Business registered and operating in Singapore

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


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The SME Working Capital Loans are usually applied through the business bankers or through online portals. All relevant documents have to be prepared for submissions in order to get an approval.

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SME Working Capital Loan at a Glance

Under the SME Working Capital Loan program, SPRING Singapore stands in as a guarantor for 50% of the loan default risk. SMEs may apply for up to S$300,000 with a 5-year repayment period.

The SME Working Capital Loan in Singapore is a business loan facility that provides SMEs with additional funds for daily operations. Business owners usually take up working capital loans in challenging times, or when they want to expand the business.

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Up to S$300,000


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Up to 5 years


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3.2 – 4.5% per annum


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2 – 3 weeks


The Pros and Cons

Fast access to funds

Reducing balance interest rates

No early redemption penalty

Up to S$300,000 only

Personal guarantee from director(s)

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"SME Working Capital Loan"
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Compare All Loan Types...

Loan Type


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


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 an SME Working Capital Loan?

Securing an SME Working Capital Loan is not an easy task…

Question is, how do you get one?

Contrary to what most think, even small and newer businesses can qualify for the SME working capital loans. The most essential criteria for assessments is the financial strength of the company: SME Working Capital Loans are for businesses with healthy revenues and relatively strong cash flows.

Take note: SME Working Capital Loan applications can take up a lot of time and energy to prepare the relevant documentation.

While it is not a loan that you can simply apply for and expect to receive the funds in a few days, it is a loan that you can use to grow your business at very low interest rates.

You may find difficulty in obtaining a working capital loan if your company is too young or if your personal credit grading is not healthy. Understandably, SPRING Singapore and the banks are extending a loan to your business because they see you as a reliable borrower.

What Documents Do I Need to Apply?

Bank Statements

Profit & Loss Statements

Balance Sheet

Income Tax Returns

Identification Card (NRIC) / Copy of Passport


“The SME Working Capital Loan makes for a great source of working capital for growing businesses. It is affordable and can be repaid over a 5 year period.”


See What Loans You Qualify For

What Do SME Working Capital Loans Work?

All small business owners want to know how to qualify for an SME Working Capital Loan. Being the cheapest source of funds in the financing industry, working capital loans are a sitting pot of gold when it comes to expanding your business economically.

Isn’t it impossible to qualify for it?

At Capable Loans, we’ve helped hundreds of small businesses to get the working capital loans they need. With all the successful working capital loans that we have obtained, we’re confident that we can help you to secure the Working Capital Loan that you need.

When you understand how the business loan works and what the qualifying requirements are, you’ll know if an SME Working Capital Loan is the best source of financing for your business…

…Otherwise, we’ll be happy to guide and help you to get the money you need.

Let’s get started.

SME Working Capital Loans: The Basics

First question to ask: where do SME working capital loans come from?

SPRING Singapore is a government associated entity set up to to help small and medium businesses in Singapore to get better knowledge on available grants, and to get greater access to small business loans.

Let’s take our attention to the latter.

A common misconception about the SME working capital loans is that SPRING issues loans to companies.

The truth is that SPRING does not lend any money to businesses. So where exactly does the working capital loan come from?

An SME working capital loan will always come from a bank or lender that participates in the SPRING government assisted financing scheme. SPRING guarantees up to 50% of the loans disbursed from the banks, so as to encourage the financial institutions to lend to small businesses.

In simple terms, there is less risk for lenders because SPRING backs up a significant portion of the banks’ credit exposure.

Because of this assurance, more banks are willing to participate in lending to small and medium companies. The participant financial institutions are able to cater to a wider range of companies without having to bend over backwards.

What It's Like to Apply for an SME Working Capital Loan?

How does this all relate to you?

While a working capital loan is cost-effective, we all know that the banks can be very slow.

With most of the banks, applying for an SME working capital loan can be a very long and troublesome process. Most lenders want to review the financial strength of the business and your credit score, and some might even request for collateral to be put up. Despite the guarantee from SPRING, many small businesses still do not qualify for the working capital loans. And of those that do, the process could take many weeks or months.

On a brighter note, an SME working capital loan’s low interest rates and long repayment terms certainly make it worth waiting for.

So then, what comes next? What is an application like?

Here we go:

If you wish to apply for an SME working capital loan, you can expect to go through a very detailed process. You’ll need to provide the relevant documents like company bank statements, profit and loss statements, balance sheets, and  information on your personal credit worthiness.

The banks always look forward to applicants with good credit history, sufficient cash flow, and strong revenues. As a business owner and director of the company, your credit history and repayment patterns are very important to the banks.

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What Will An SME Working Capital Loan Cost You?

What’s the cost of funds for your business? How much will a working capital loan
cost? Well, the cost will depend on which lender you go to. Here are the general processing fees, interest rates, and repayment terms of the SME Working Capital Loan.

Fees: 1 – 1.5% of the approved loan amount

Interest: Rates range over 3.2 – 4.5% per annum

Repayment: Loan repayment terms depend on the loan amount, financial strength of the business, and many other factors, but the maximum loan tenure is 5 years.

As for the repayment schedule: like all other business loans, you can expect to be making monthly repayments.

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