Working Capital Loans Singapore
Bridge cash flow gaps and fund growth opportunities with flexible working capital solutions
What is Working Capital?
Working capital is the money your business needs to cover day-to-day operations - from paying suppliers and staff to managing inventory and covering operational expenses. Working capital loans bridge the gap between your business expenses and income, ensuring smooth operations even when cash flow is tight.
Unlike equipment finance or property loans, working capital loans offer maximum flexibility. Use the funds for any business purpose: inventory purchases, staff wages, marketing campaigns, or managing cash flow during business cycles.
Key Benefits
Quick Access to Funds
Get funding within 24 hours to maintain cash flow
Flexible Use
Use funds for any working capital needs
Simple Process
Streamlined online application and approval
Revolving Options
Access funds as needed with credit line facilities
Flexible Support
Bridge cash flow gaps effectively during business cycles
No Asset Security Required
Unsecured options based on business performance
Working Capital Options
- Loan Amount
- $5,000 - $500,000+
- Loan Term
- 3 - 24 months (short-term focus)
- Interest Rates
- Banks: 8.99%-15% | Alternative: 15%-35%
- Funding Speed
- 24 hours - 5 business days
- Security Required
- Often unsecured up to $100K
- Repayment Options
- Daily, Weekly, Fortnightly, or Monthly
Business Working Capital Examples
Singapore businesses face various cash flow challenges. Here's how working capital loans help different industries:
Retail/E-commerce
Challenge: Peak shopping periods (Chinese New Year, year-end)
Solution: Working capital to purchase inventory and manage increased orders
Best Timing: Before major festivals and shopping seasons
F&B/Restaurant
Challenge: Equipment upgrades and renovation costs
Solution: Bridge funding for kitchen equipment and outlet improvements
Best Timing: During business expansion or equipment replacement
Professional Services
Challenge: Client payment delays (30-90 days)
Solution: Maintain operations while waiting for invoice payments
Best Timing: Ongoing cash flow management
Manufacturing/Trading
Challenge: Large orders requiring upfront material costs
Solution: Fund raw materials and production before customer payment
Best Timing: When securing major contracts or export orders
Working Capital Solutions by Scenario
Invoice Payment Delays
Customers paying 30-90 days late
Working Capital Solution: Bridge the gap between invoice issue and payment
Typical Amount: $10K - $150K
Term: 1-3 months
Large Contract Upfront Costs
Need materials/labour before payment milestones
Working Capital Solution: Finance project costs until milestone payments
Typical Amount: $25K - $300K
Term: 2-6 months
Inventory Restocking
Bulk purchase discounts or supplier terms
Working Capital Solution: Take advantage of bulk pricing and early payment discounts
Typical Amount: $15K - $200K
Term: 1-4 months
Equipment Breakdown
Unexpected repair or replacement costs
Working Capital Solution: Emergency funding to maintain operations
Typical Amount: $5K - $100K
Term: 3-12 months
Working Capital Needs by Industry
Manufacturing
- • Raw material purchases
- • Production cycle funding
- • Export order financing
Wholesale/Distribution
- • Inventory purchases
- • Warehouse operations
- • Transportation costs
Professional Services
- • Staff salaries
- • Office rent
- • Project expenses
Food & Beverage
- • Ingredient purchases
- • Packaging materials
- • Equipment maintenance
Comparing Working Capital Lenders
Different lenders offer different advantages for working capital funding. Understanding these differences helps you choose the right funding partner:
Traditional Banks
DBS, UOB, OCBC, MaybankAdvantages
- • Lower interest rates
- • Established relationships
- • Comprehensive services
Considerations
- • Strict requirements
- • Slow approval process
- • Extensive documentation
Best For
Established businesses with strong financials
Alternative Lenders
Bizcap, Funding Societies, ValidusAdvantages
- • Quick approval
- • Flexible criteria
- • Minimal documentation
Considerations
- • Higher interest rates
- • Shorter terms
- • Additional fees
Best For
Businesses needing quick funding or with limited credit history
Credit Line Providers
Bizcap, Invoice InterchangeAdvantages
- • Pay only for what you use
- • Revolving credit
- • Instant access
Considerations
- • Variable rates
- • Credit limits
- • Personal guarantees
Best For
Businesses with fluctuating working capital needs
How to Apply for Working Capital
Assess Your Working Capital Needs
Calculate how much funding you need and for how long
- Review cash flow projections for next 3-12 months
- Identify specific working capital gaps
- Calculate required amount and preferred term
- Consider cyclical business patterns and cash flow timing
Prepare Your Application Documents
Gather essential business and financial information
- Business bank statements (last 6 months)
- Financial statements or management accounts
- Cash flow forecasts and projections
- Details of existing debts and commitments
Compare Lender Options
Find the best working capital solution for your needs
- Compare interest rates and fees
- Review repayment terms and flexibility
- Check approval timeframes
- Consider ongoing relationship benefits
Submit Application
Apply through iBusinessLoan to access multiple lenders
- Complete online pre-qualification
- Upload required documentation
- Receive multiple funding proposals
- Choose the best offer for your business
Working Capital Management Tips
Frequently Asked Questions
How quickly can I get working capital funding?
Through our network, you can receive funding within 24-48 hours for amounts up to $100,000, with larger amounts typically taking 3-5 business days once approved.
Do I need to provide security for working capital loans?
Many working capital loans are unsecured, especially for amounts under $100,000. Larger amounts may require business assets or personal guarantees as security.
Can I use working capital loans for any business expense?
Yes, working capital loans are designed for flexibility. Use them for inventory, wages, rent, marketing, or any operational expense that keeps your business running.
What's the difference between a working capital loan and a line of credit?
A loan provides a lump sum with fixed repayments, while a line of credit lets you draw funds as needed and pay interest only on what you use. Lines of credit offer more flexibility for ongoing working capital needs.
How do I know how much working capital I need?
Calculate your monthly operational expenses and identify cash flow gaps. Consider business cycles, growth plans, and any upcoming large expenses. Our calculator can help estimate your needs.
Can startups get working capital loans?
Yes, but requirements are stricter. Startups typically need strong cash flow projections, personal guarantees, and may pay higher rates. Alternative lenders are often more flexible than banks for new businesses.
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Recommended Lenders
Singapore Business Loan Rates Comparison
Current rates from major lenders (updated weekly)
| Lender | Min Rate | Max Amount | Approval Time | Best For |
|---|---|---|---|---|
| DBS Bank | 3.5% p.a. | S$10M | 5-7 days | Established businesses |
| OCBC Bank | 3.8% p.a. | S$5M | 5-7 days | SMEs with good credit |
| Bizcap | 8.0% p.a. | S$500K | 24 hours | Fast funding needed |
| Funding Societies | 6.5% p.a. | S$1M | 2-3 days | P2P lending |
Get Working Capital Funding Today
Compare working capital loans from banks and alternative lenders. Fast approval and competitive rates.