SME Working Capital Loan:
SPRING Enterprise Singapore

What is SME Working Capital Loan?

In our opinion:

The best business loan product in Singapore today.

Generous loan quantum of up to S$300,000, with a tenure of up to 5 years.
Still not convinced…?

Interest rates of about 3.2% – 3.75% p.a.

There we go.

Alright, well… so It’s nothing jaw-dropping or even exciting per se…

… but certainly no denying that the low interest rates are very attractive.

To top it all off:

  • No early redemption penalty
  • Interest charged is based on a reducing balance method of calculation.

Interest charged is based on the last recorded balance of the loan, not the principal loan amount.
This essentially means that the cost of the loan reduces with each repayment.

sme working capital loan

SME WCL at a Glance

Under the Enterprise Financing Scheme (EFS), Enterprise Singapore (formerly SPRING Singapore) stands in as a guarantor for 50% of the business 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.

  • Loan Amount: Up to S$300K
  • Loan Term: 1 – 5 years
  • Interest Rates: 6.5% – 7.5% p.a.

The Pros and Cons


  • Fast access to funds
  • Interest based on reducing balance
  • No early redemption penalty


  • Up to S$300k only
  • Personal guarantee from Director(s)

How To Qualify For 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 loan.

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.

While it is not a business 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 an SME loan if your company is too young or if your personal credit score is not healthy. Understandably, Enterprise 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?

Here are the documents that you will need to prepare in order to apply for the Enterprise Singapore loan:

  • Bank Statements
  • Profit & Loss Statements
  • Balance Sheet
  • Income Tax Returns
  • Identification Card (NRIC) / Copy of Passport

Enterprise Singapore Financing Scheme: How Does It 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 SME financing industry, this SME loan is 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 SME loans they need. With all the successful business loans that we have obtained, we’re confident that we can help you to secure the funding 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 you to other alternative sources of SME financing.

Let’s get started.

SPRING working capital loan

FAQ on SME Working Capital Loan

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.

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 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 loan. And of those that do, the process could take many weeks or months.

On a brighter note, the 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.

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.

Send us a message / Request for a callback

Fields marked with an * are required

About Capable Group

Capable Group is a comparison platform for business loans in Singapore. As the leading aggregator of corporate loans and business financing solutions, we will help you to get the best SME loan to grow your business. We work with multiple banks and accredited financial institutions to provide you with the latest financial products and interest rates.