Working Capital Loan Singapore — Keep the business moving.
Payroll, suppliers, inventory, slow months. A working capital loan gives your business the cash to operate without waiting for revenue to catch up. We compare 30+ banks and alternative lenders to find the right fit — fast.
What is a working capital loan?
A working capital loan is a short-to-medium-term facility that gives a business cash for day-to-day operations. It is not for buying equipment or property — those require asset financing products. A working capital loan is for the gap between when you spend money and when you collect it: paying staff, settling invoices, buying stock, covering slow months, or seizing a contract that requires upfront outlay before revenue arrives. Tenures run from 3 months (revolving) to 5 years, and loan amounts from $10,000 to $500,000 depending on the lender and your business profile.
When do Singapore businesses need working capital?
Payroll gap
Your invoice won't clear for 45 days but payroll is due next Friday. A short-term working capital draw covers the gap without disrupting operations.
Supplier payment
You've won a $300K contract but need to pay your supplier upfront before you can deliver and invoice the client.
Seasonal dip
Revenue drops 40% every January. Working capital smooths that curve so you don't have to lay off staff or miss rent.
Pre-contract buildup
New contract starts next month. You need 6 weeks of runway to hire, equip, and train before cash starts flowing in.
Late-paying client
A government or GLC client runs 90-day payment cycles. That cash is coming — it's just tied up. Working capital or invoice financing releases it now.
Eligibility
Banks (lower rates)
- ✓ 2+ years in operation
- ✓ Annual revenue ≥ $300K–$500K
- ✓ No recent CCJ or bankruptcy
- ✓ Clean director credit (CB score)
- ✓ Financial statements available
Alternative lenders (faster)
- ✓ 6+ months in operation
- ✓ Active corporate bank account
- ✓ Monthly revenue ≥ $20K
- ✓ Director NRIC or passport
- ✓ No active insolvency proceedings
Lenders we work with
Traditional banks
- DBS Bank — largest SME lender in Singapore
- OCBC Bank — strong SME focus, EFS PFI
- UOB — BizMoney and SME term facilities
- Standard Chartered — Business Instalment Loan
- HSBC — SME Working Capital products
- Maybank, CIMB — regional SME specialists
Alternative lenders
- Funding Societies — SGX-listed P2P lender, fast decisions
- ANEXT Bank — Ant Group digital bank, SME-focused
- GXS Bank — Grab-Singtel digital bank, 6-month eligibility
- Validus — SME working capital specialist
- Capital Springboard — alternative SME finance
CLIENT EXAMPLE
A Toa Payoh logistics firm won a $600K government supply contract but needed to hire 15 drivers and buy insurance upfront. With DBS declining (22 months of operation, short of their preferred 2-year mark), we placed $200K with Funding Societies at 14.5% p.a. — approved in 48 hours. The contract margin more than covered the financing cost.
Frequently asked questions
What exactly can I use a working capital loan for?
Working capital loans are for operational expenses — not asset purchases. Common uses: covering payroll between invoices, paying suppliers to fulfil a new contract, restocking inventory ahead of a busy season, bridging a slow month, or managing the gap between when you pay costs and when you collect revenue. If you need to buy equipment or machinery, you want a Fixed Assets or EFS Fixed Assets product instead.
What is the difference between a bank working capital loan and an alternative lender?
Banks (DBS, OCBC, UOB) offer lower interest rates — typically 5–8% p.a. — but have stricter criteria: they usually want 2+ years of operation, clean CB credit, audited financials, and a track record. Alternative lenders (Funding Societies, ANEXT, GXS) move faster (24–72 hours) and consider younger businesses and thinner profiles, but charge higher rates (10–24% p.a.). The right choice depends on your urgency, your profile, and how rate-sensitive you are. We explain the trade-off clearly before recommending.
How much can I borrow with a working capital loan?
For most SMEs, $10,000–$500,000. Some banks will go higher for established businesses with strong revenue history. Alternative lenders typically cap at $200,000–$300,000. The actual amount offered depends on your monthly revenue, existing debt obligations, and credit profile — not just the product maximum. We give you a realistic expectation before you apply.
Will applying affect my credit score?
A hard credit inquiry typically appears on your CB report when a lender assesses your application. Multiple hard inquiries in a short period can temporarily lower your score. This is one reason to use a broker — we pre-screen your profile and submit to matched lenders only, rather than having you apply to 5 banks sequentially, each pulling your report. Our initial eligibility check does not trigger a credit inquiry.
I only have 1 year of operation. Which lenders will consider me?
Funding Societies and ANEXT Bank consider businesses from 6–12 months of operation. GXS Bank (the Grab-Singtel digital bank) also has flexible early-stage criteria. Among traditional banks, OCBC Business First is the most accessible for younger businesses. The more important factors at the 1-year mark are your director's personal credit score and your monthly bank statement turnover. Strong personal credit can unlock options even when the business track record is short.
Last updated: April 2026
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