Choose the Best Business Loan

Why need a business loan?

You are running your online business. You sell pottery, t-shirts, hardware or anything you get the idea. Now you’ve gotten some bigger projects and you need more supplies, it’s the time to take your business to the next level by putting more capital into it. If you don’t have savings then getting a business loan is not a bad idea.  But you are confused about which bank is suitable for your business loan. No worries! We’ve compared top business loan moneylenders in Singapore and come up with their amazing business loan packages.

                Singapore Business Loan Comparison

VALIDUSUOBOCBCDBS
Loan TypeSmall Business LoanUOB BizMoneyOCBC Business Term LoanDBS Business Loan
Loan amountUp to S$500,000S$50,000 S$350,000 S$500,000 Up to S$500,000  
Interest Rate6.5% p.a. – 11% p.a.8.0% p.a. -12.99% p.a.8.88% p.a. – 13.88% p.a.10.88% p.a.
Processing Fees2% of the loan amount S$288 or S$288 of the loan amount S$500 or 2% of the loan amount 2%
TenorUp to 5 years 4 years Up to 5 yearsUp to 5 years
Repayment Fee2.8% of principle amount prepaid4.8% flat or specified by the bank 2.0% of principle amount prepaid2.5% of principle amount prepaid
Lock in PeriodNo lock in PeriodNo lock-in period2 years lock-in period for a low-interest rate.No lock-in period for high-interest rate.2 years lock-in period
Annual FeeN. AS$288- S$500N. AN. A
Cancellation Fee2.0% of the loan amount4.8% flat or specified by the bank2.0% of the loan amount2.0% of the loan amount
Min. Years in Business5 yearsUp to 4 yearsUp to 5 years Up to 5 years
Required GuarantorsYesYesYesYes

*Note: All information is believed to be accurate.

Tips to get a business loan:

Tips to get a business loan
  • Get a loan from another bank, other than your operating bank. Because when you are a new customer to the bank, agents work a little harder and give you more attention.
  • Try to negotiate with the agent about the interest rate and the other fees. If you become successful you can get a reduction of 1% of total interest rate and save S$1500 which you are going to pay over a period of 5 years.  
  • You can hire a business loan broker. As they are experienced in getting a business loan and have connections with many banks. They can save you time and give you the best business loan advice by understanding your business requirements.

Conclusion:

You see. There is minimal difference between those local banks. Although, UOB appears to be the best in order of their business loan terms, eligibility and requirements. The good part is, UOB’s interest rates and other fees are negotiate able. Overall there is no big difference except the industry type. Usually, banks don’t borrow a loan to high-risk industries i-e café, spa, and construction but ordinary business owners can get benefit from them.

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