SME Working Capital Loan Singapore (EFS-WCL)

Up to S$500,000 working capital financing with 70% government risk-sharing

Loan Features & Benefits

Maximum Amount

S$500,000

Generous loan limit for SME working capital needs

Government Risk Sharing

70%

Government backs 70% of loan risk, improving approval chances

Loan Tenure

Up to 5 years

Flexible repayment period to manage cash flow

Interest Rates

From 5.0%

Competitive rates due to government backing

Processing Time

2-4 weeks

Streamlined approval process for faster access

Security Required

Varies

May require business assets or personal guarantee

Common Working Capital Needs

Inventory Financing

Fund inventory purchases for seasonal demand or bulk buying opportunities

Example:

Retail business needs S$150K to stock up for Chinese New Year shopping season

Typical Amount: S$50K - S$300K
Duration: Typically 3-6 months for seasonal cycles

Trade Financing

Bridge cash flow gaps between orders and customer payments

Example:

Manufacturing company needs S$200K while waiting for 90-day payment terms

Typical Amount: S$100K - S$500K
Duration: Usually 1-3 months depending on payment cycles

Operations Support

Cover operating expenses during business expansion or growth phase

Example:

F&B business needs S$80K for staff costs while opening new outlet

Typical Amount: S$30K - S$200K
Duration: Generally 6-12 months during expansion

Supplier Payment

Take advantage of early payment discounts or negotiate better terms

Example:

Trading company needs S$120K to secure better supplier terms

Typical Amount: S$50K - S$400K
Duration: Typically 1-6 months for supplier arrangements

Eligibility Requirements

Business Registration

  • Singapore-incorporated company with valid UEN
  • Minimum 30% local shareholding by Singapore citizens/PRs
  • Operating business with established track record

Financial Criteria

  • Annual sales turnover up to S$500 million
  • Good credit standing and financial health
  • Ability to service loan repayments

Loan Purpose

  • Working capital needs (inventory, trade, operations)
  • Not for capital expenditure or property purchase
  • Clear business justification for loan usage

Participating Banks

DBS Bank

Min Amount: S$30,000
Max Amount: S$500,000
Processing: 2-3 weeks

Specialties:

  • Digital application
  • SME focus
  • Industry expertise

Best For:

Tech-savvy businesses wanting digital experience

OCBC Bank

Min Amount: S$50,000
Max Amount: S$500,000
Processing: 3-4 weeks

Specialties:

  • Relationship banking
  • Trade finance
  • Competitive rates

Best For:

Import/export businesses and trading companies

UOB

Min Amount: S$30,000
Max Amount: S$500,000
Processing: 2-3 weeks

Specialties:

  • Manufacturing expertise
  • F&B sector knowledge
  • Fast approval

Best For:

Manufacturing and F&B businesses

CIMB Bank

Min Amount: S$25,000
Max Amount: S$500,000
Processing: 3-4 weeks

Specialties:

  • Flexible terms
  • Competitive pricing
  • Personal service

Best For:

SMEs seeking personalized banking relationship

Application Process

1

Eligibility Check

1 day

Verify business meets EFS-WCL requirements

Required Documents:

  • UEN certificate
  • Shareholding structure
  • Business profile
2

Financial Documentation

3-5 days

Prepare comprehensive financial information

Required Documents:

  • 2-3 years audited accounts
  • Management accounts
  • Cash flow projections
  • Bank statements
3

Business Plan & Loan Purpose

2-3 days

Document specific working capital needs

Required Documents:

  • Detailed business plan
  • Working capital analysis
  • Supplier quotations/contracts
4

Bank Selection & Application

1-2 days

Choose participating bank and submit application

Required Documents:

  • Complete application form
  • All supporting documents
  • Bank interview preparation
5

Assessment & Approval

2-4 weeks

Bank and Enterprise Singapore evaluation

Required Documents:

  • Additional info if requested
  • Site visit coordination
  • Final terms negotiation

Why Choose EFS-WCL?

🛡️

Government Backing

70% risk-sharing increases approval chances significantly

💰

Competitive Rates

Lower interest rates starting from 5.0% annually

📅

Flexible Terms

Up to 5 years repayment with various structures

⚡

Quick Access

Streamlined process for faster working capital access

🎯

No Prepayment Penalty

Pay off early without additional charges

🏦

Multiple Banks

Choose from 4+ participating banks for best terms

Frequently Asked Questions

What is the difference between EFS-WCL and regular working capital loans?

EFS-WCL offers government risk-sharing (70%), lower interest rates, and higher approval chances compared to regular bank working capital loans. The government backing allows banks to offer more favorable terms.

Can foreign-owned companies apply for EFS-WCL?

Yes, but the company must be Singapore-incorporated with minimum 30% local shareholding by Singapore citizens or permanent residents. The business must also be substantially operated in Singapore.

How long does the EFS-WCL application process take?

Typically 2-4 weeks from complete application submission. Banks may request additional information which could extend the timeline. Preparation time for documents usually takes 1-2 weeks.

What can I use EFS-WCL funds for?

Working capital purposes only: inventory financing, trade financing, operational expenses, supplier payments. Cannot be used for capital expenditure, property purchase, or debt refinancing from the same bank.

Is there a minimum business age requirement?

While there's no specific minimum age, banks typically prefer businesses with at least 1-2 years operating history. Newer businesses may face stricter requirements or need additional guarantees.

Can I apply to multiple banks simultaneously?

Yes, you can approach multiple participating banks to compare terms. However, each bank will conduct its own credit assessment, and multiple applications may affect your credit score.

Ready to Apply for SME Working Capital Loan?

Get up to S$500,000 working capital with 70% government backing through EFS-WCL

Apply for EFS-WCL Calculate Repayments