Business Term Loan

DIRECT BANK FINANCING

Unsecured business credit, without the collateral

A direct, unsecured term loan from a Singapore bank. No government scheme, no property pledge — the bank carries the full risk and applies its own credit standards.

QUANTUM RANGE

Up to S$700K

Lender-dependent

TYPICAL TENURE

Up to 5 Years

Fixed monthly repayment

COLLATERAL

None

Personal guarantee required

TYPE

Unsecured

Direct bank facility

What It is?

A Business Term Loan is the most straightforward form of SME financing: a lump sum disbursed upfront, repaid in fixed monthly instalments over a defined tenure. There is no government scheme involved, no collateral pledged. The bank carries 100% of the default risk.

Because the bank is fully exposed to the credit, the application bar is higher than government-assisted schemes. Lenders typically look for established trading history, healthy bank statement balances, clean director credit records, and a clear use-of-funds story.

The trade-off for that tighter bar is flexibility. Business Term Loans are not restricted to specific use-cases. They can fund expansion, equipment purchases, marketing investment, debt consolidation, or simply give a business a longer-term financing reserve. They can also be combined with government-assisted facilities to reach larger total funding amounts.

Why SMEs use this

Direct bank lending plays a different role from government-assisted schemes. Three reasons businesses choose this route.

Flexibility of Use

Unlike scheme-based loans tied to specific purposes, an unsecured term loan can fund any legitimate business need — expansion, marketing, equipment, debt consolidation, or simply a strategic financing reserve.

Stackable with Schemes

Many Singapore SMEs hold a Business Term Loan alongside an EFS-WCL or other government-backed facility. Combined exposure is assessed by the lender, but layering facilities is a recognised path to higher total funding.

Pure Bank Relationship

No scheme reporting requirements. No risk-share paperwork. The relationship is between the SME and the lender — clean, direct, and quick to refinance or top up as the business matures.

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