Construction Business Loan Singapore
Construction Financing — Equipment, Project Capital & Progress Billing Gaps
Construction cash flow does not match calendar months. Equipment mobilisation happens before any billing. Progress claims take 30–60 days to pay. We work with lenders who understand project-based businesses and structure financing around your contracts, not just your bank statements. 4–5% success-only fee.
Construction-specific financing challenges
Construction businesses face financing challenges that most lenders do not fully understand. Here is what makes construction financing structurally different.
Front-loaded equipment cost
Equipment must be mobilised at project start — before any billing. This creates a capital requirement that precedes any revenue from the contract.
Progress billing gap
You bill at milestones. Your client has 30–60 days to pay. Meanwhile, labour, materials, and subcontractor costs continue. The gap is structural, not a sign of financial trouble.
Performance bonds
BCA, MOM, and developer-required bonds tie up cash or credit lines. A $2M project might require $100K–$200K in bonds that earn nothing while locked up.
Construction financing needs — products that fit
Equipment mobilisation
Excavators, cranes, loaders, dump trucks, and specialist equipment. EFS Fixed Assets allows up to $30M with tenure to 15 years and government risk co-sharing.
Performance bond funding
BCA and MOM bonds tied up in cash. A credit-backed guarantee facility frees this cash for operations. Typically 1–2% of bond value per year.
Progress billing cash flow gap
Cash needed between submitting a progress claim and receiving payment. EFS Working Capital up to $500K with government risk-sharing.
Subcontractor and supplier payments
Pay your subs and suppliers before your main contractor pays you. Trade financing bridges the payment cycle.
New project working capital
Capital needed at project mobilisation before first progress billing. We structure around the project contract as supporting evidence.
EFS Fixed Assets — the right tool for construction equipment
The Enterprise Financing Scheme Fixed Assets loan is administered through Enterprise Singapore and specifically designed for capital equipment purchases. Construction companies are among the heaviest users of this scheme.
What qualifies
- • Excavators and earthmoving equipment
- • Cranes and lifting equipment
- • Concrete pumps and batching plants
- • Heavy trucks and transport vehicles
- • Scaffolding systems
- • Specialist construction machinery
Key terms
- • Up to $30M per borrower group
- • Tenure up to 15 years
- • Government risk co-sharing
- • Available through Participating Financial Institutions
- • Requires Singapore-registered business with ≥30% local shareholding
- • Annual group revenue ≤ $500M
Not all banks are Enterprise Singapore Participating Financial Institutions for EFS Fixed Assets. We know which ones are and submit directly to the right lenders for your equipment type and loan size.
Case study
$2M BCA project contractor secured $350K equipment financing in 7 days
A civil contractor had secured a $2M BCA project for an HDB precinct upgrading contract. He needed a $350K excavator and a $80K dump truck at project mobilisation — before the first progress billing milestone.
His bank had asked for 3 months of trading history with the new project (which had not started yet) and a 30% cash down payment. This was unworkable — the equipment was needed before the project could generate any billing history.
We structured the application under EFS Fixed Assets, using the signed BCA Letter of Award as supporting evidence of future cash flow. Submitted to two Participating Financial Institutions simultaneously. First approval came in 4 days at $380K. Second came in 7 days at $430K. The client took the second offer — better rate, higher quantum. Equipment delivered and mobilised within the project start window.
Approved: $430K · Time to first approval: 4 days · Product: EFS Fixed Assets
Construction business loan — frequently asked questions
What financing options exist specifically for construction companies in Singapore?
Construction businesses have several options. EFS Fixed Assets financing (up to $30M, tenure up to 15 years) covers equipment like cranes, excavators, and heavy machinery. EFS Working Capital covers cash flow between progress billing claims. Trade financing handles payments to subcontractors and material suppliers where you need to pay before your client pays you. Performance bond financing covers the cash locked up in bonds for MOM and BCA-related requirements. We match contractors to the right product for the specific cash flow gap they are trying to bridge.
How do lenders view progress billing in construction?
Progress billing — where you bill at project milestones and wait 30–60 days for payment — creates predictable but delayed cash flow. Lenders who understand construction see this as manageable risk: the revenue is contracted, the billing schedule is clear, and payment is from creditworthy parties (government agencies, large developers, GLC clients). The challenge is when a project delays a milestone payment. Banks want to see evidence that you have managed this before — consistent bank statements showing you have bridged payment gaps without defaulting on other obligations.
Can I finance a performance bond or banker's guarantee?
Yes. Performance bonds and banker's guarantees for construction contracts can be financed through trade financing facilities. Banks issue the guarantee on your behalf against a cash deposit or a credit facility. If your bond requirements are tying up significant cash, we can help establish a credit-backed guarantee facility that frees up that capital for operations. The cost is typically 1–2% of the bond value per year.
What is EFS Fixed Assets financing and can construction companies use it?
The EFS Fixed Assets loan under Enterprise Singapore's Enterprise Financing Scheme is specifically designed for capital equipment purchases. Construction companies are among the primary users — cranes, excavators, dump trucks, concrete pumps, scaffolding systems, and other heavy equipment all qualify. The loan covers up to $30M per borrower group, with tenure up to 15 years, and benefits from government risk-sharing which improves approval odds for equipment-heavy businesses. To qualify, your business must be Singapore-registered with at least 30% local shareholding.
My construction company was rejected by a bank. What are my options?
Construction sector rejections from banks are common and not always a reflection of your business quality. Banks apply risk models that sometimes flag the sector before looking at your specific track record. Alternative lenders — Funding Societies, Validus, ANEXT — have more flexible sector views and are specifically set up for cash-flow-based lending where your project contracts serve as supporting evidence. We have also placed construction loans through specialist finance companies and credit co-operatives. A rejection from DBS does not close every door.
Tell us what you need to finance.
Equipment, project capital, or progress billing gap — we match construction businesses to lenders who understand project-based cash flow. 4–5% success-only fee.
Check my eligibility — free →Last updated: April 2026