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
|Loan Type||Small Business Loan||UOB BizMoney||OCBC Business Term Loan||DBS Business Loan|
|Loan amount||Up to S$500,000||S$50,000 S$350,000||S$500,000||Up to S$500,000|
|Interest Rate||6.5% 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 Fees||2% of the loan amount||S$288 or S$288 of the loan amount||S$500 or 2% of the loan amount||2%|
|Tenor||Up to 5 years||4 years||Up to 5 years||Up to 5 years|
|Repayment Fee||2.8% of principle amount prepaid||4.8% flat or specified by the bank||2.0% of principle amount prepaid||2.5% of principle amount prepaid|
|Lock in Period||No lock in Period||No lock-in period||2 years lock-in period for a low-interest rate.No lock-in period for high-interest rate.||2 years lock-in period|
|Annual Fee||N. A||S$288- S$500||N. A||N. A|
|Cancellation Fee||2.0% of the loan amount||4.8% flat or specified by the bank||2.0% of the loan amount||2.0% of the loan amount|
|Min. Years in Business||5 years||Up to 4 years||Up to 5 years||Up to 5 years|
*Note: All information is believed to be accurate.
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.
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.