SME Working Capital Loan (2020)

SME Working Capital Loan to Grow Your Business

Under this SME financing scheme, Enterprise Singapore (formerly SPRING Singapore) partners with participating financial institutions to bear 80% of credit risk in the event that a company defaults on the SME loan.

To qualify for the SME Working Capital Loan, your company must be registered and operating in Singapore. Your company must have at least 30% local shareholding, an annual sales turnover of not more than $100,000,000, and a company size of not more than 200 employees.

It allows businesses to get greater access to business loans of up to $5,000,000. The government assisted financing scheme was launched in 2016 to help small medium enterprises to tide over dry periods with sufficient working capital to meet cash flow needs.

What is the SME Working Capital Loan?

In our humble opinion:

It is the BEST business loan for any SME in Singapore right now.

Think about it…

The SME working capital loan interest rate is low, tenure is fairly long, and maximum loan amount is huge.
To top it off, interest rate charged is based on a reducing balance. WHUUUT?!

Working capital refers to the cash that a business utilizes for daily operations, and the general running matters of the business. As the saying goes , “Cash flow is king”. What happens when a company does not have enough money to run its daily operations?

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

However, given the attractive SME working capital loan interest rate, you should take up the $5,000,000 regardless of situation, and invest it into anything that can provide future returns. 

Before committing to any business loan, always calculate the monthly installment amount first. Then consider if your business will have enough cash flow to make timely repayments. 


  • Loan Amount: Up to $5,000,000
  • Repayment Period: 1 – 5 years
  • Interest Rates: 2.5% – 3.75% p.a.


To qualify for the SME Working Capital Loan, your company must meet the following criteria:

  • Registered and operating in Singapore for at least 6 months.
  • At least 30% local shareholding.
  • Company turnover at least $300,000; and no more than $100 million.
  • Total employment size not exceeding 200.

Required Documents for Application

To apply for the SME Working Capital Loan, here are the documents that you need to prepare:

  • NRIC or passport copy of company directors
  • Income tax Notice of Assessment of directors for the last 2 years
  • Company financial statements for the last 2 years
  • Bank statements for the last 6 months

General FAQ

How does it work?

Business loans in Singapore generally have repayment terms of up to 5 years. The main objective of the funds is to provide businesses with cash flow to sustain daily operations.

With a repayment period of up to 5 years, the SME working capital loan is ideal for long-term expansion plans that require time to be successfully executed. The government assisted SME loan scheme was initiated to help companies ease daily operational costs for a prolonged period.

Given that all businesses are unique in needs and operational activities, the banks do not dictate how businesses use the working capital funds, allowing companies to use the funds freely for whatever purpose the business needs. Unlike an equipment loan where funds must be used for a specific purpose, this flexibility also provides for an easier and smoother application process.

More often than not, businesses that need additional financing are businesses that experience seasonality in their revenues. Companies utilize these working capital loans to tide over slower periods, allowing for business to continue as usual. Other businesses may use the funds to stock up before busy periods when revenues start to stream in, or even to jump on opportunities that allow for the business to expand and grow.

Why should I get it?

Simply because interest rates are low. For companies that are facing cash flow issues, the additional funds can help to tide you through. And for small businesses that wish to expand, the generous loan quantum can help with that.

The purpose of the SME working capital loan in Singapore is to help business owners to tide through periods of slower revenues, or to expand and grow the business.

What is the interest rate for the SME WCL?

Due to the Covid-19 situation, interest rates are currently at an all time low of between 2.5% to 4% per annum.

How to qualify?

Your business should be at least 6 months old, have a local shareholding of at least 30%, and a total employment size not exceeding 200.

The Director of the company should also have a healthy credit bureau rating, and at least $10,000 should be maintained in the company’s bank accounts no average.