Why Trust MoneySmart?For most new businesses in Singapore, available loan amounts typically range from S$100,000 to S$500,000, with government-assisted loans such as the Enterprise Financing Scheme (EFS) being the most prominent option for startups. However, the actual amount you can borrow is not guaranteed—it depends on your business’s operating history, annual revenue, and the founder’s personal credit record and financial strength.
Government-assisted loans for startups
Enterprise Financing Scheme – SME Working Capital Loan (EFS-WCL):
Borrow up to S$500,000 per application
Maximum tenure up to 5 years
Use of funds: daily operations and cash flow
Government risk-share of 50% (can be up to 70% for new/young enterprises)
Overall EFS-WCL cap: S$5 million per borrower group
OCBC Business First Loan:
Borrow up to S$100,000
For young businesses aged 6 to 24 months
Typical eligibility: at least 30% local shareholding, one or more employees, and more than 50% equity owned by individuals
Other loan options for new businesses
Financial institutions (e.g., GXS Capital, Funding Societies):
GXS Capital: SME loans up to S$1 million for private limited companies trading at least 6 months; fast application process
Funding Societies: Start-up financing for firms under 2 years old and term loans up to S$1 million for established or growing SMEs
Can be considered for very young startups with little business history
Loan limits based on the founder’s personal income and credit score, not the business profile
💡 MoneySmart Tip |
Use trusted online comparison tools like MoneySmart's personal loan comparison to review personalised rates, eligibility, and requirements across major banks in Singapore—helping you make a more informed choice quickly. |
Factors that influence your loan amount
Banks and lenders in Singapore carefully review affordability and risk before deciding on your loan quantum.
Operating history: Most business loans require 6 to 24 months of trading history; options are more limited for newer companies.
Business financials: Strong cash flow, sales, or minimum revenue make higher borrowing limits possible.
Personal credit and income: Especially relevant for founders using personal loans or offering personal guarantees.
Business plan quality: A clear, realistic plan showing how you’ll use and repay the funds improves your chances.
Start with realistic expectations—a stronger business and personal profile increases your odds of getting the funding your new business needs.
