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Why Business Loans Are Essential To Help Your SME Thrive

on Nov 18, 2020

Shrewd business owners in Singapore see opportunity when others see adversity. Yet, all too often, finances is a limiting factor, particularly for small SMEs or new startups with big ideas but small budgets. In such cases, a business loan can mean the difference between a flourishing or floundering business. Here are some key reasons why taking an SME loan in Singapore will help your company thrive.


It provides an invaluable boost to your finances.

SME loans in Singapore are great for injecting much-needed finances. Some business owners might seek to fully tap into schemes such as Singapore’s SMEs Go Digital programme, aimed at utilising digital technologies to grow one’s business. In addition to making use of government grants, SME owners would likely require additional finances to spend on e-commerce platforms, management services, and pre-approved solutions – necessitating a business loan for these purposes.


Another benefit that these loans allow is to tap into a limited-period lucrative business deal, such as discounted rates to upgrade business infrastructure, or liquid funds to invest in a good business deal. Capitalising on these is essential for helping your business edge out the competition as well.


In addition, business loans are ideal for visionary young entrepreneurs with innovative ideas. Many of them do not have the existing funds to take the plunge and invest into their business. SME loans in Singapore allow them to beat the odds and have a chance at succeeding in the competitive business scene.


It has incredibly swift approval.

Traditional business loans offered by institutions such as banks require stringent checks and extensive approval. Some of these include an operational history of at least a year and a minimal annual revenue of $300K, as well as taking approximately 2-3 weeks for approval. In some cases, the processing time may take up to a month; making it unsuitable for SME owners trying to make use of a window of opportunity to seize a lucrative business opportunity.

In contrast, taking out a SME loan at a licensed Singapore moneylender only takes up to 5-7 days on average, depending on the amount that is to be loaned. Here are some of the required documents you’ll need to speed up the process:


  • Your company’s BizFile
  • Your company’s bank statements from the last 6 months
  • A copy of the ICs (both front and back) of all directors and shareholders
  • Your company’s financial reports from the last 2 years
  • All directors and shareholders’ Notice of Assessment
  • All directors and shareholders’ CBS report
  • Your CPF contribution to staff in the latest month (if applicable)
  • Your business’ tenancy agreement


It provides a hassle-free way to source for funds.

Particularly for young entrepreneurs of startups, their passion can be easily replaced with fatigue, as they have to juggle company operations, seeking new ventures, all while continually sourcing for more funds and capital. Many banks are unwilling to approve business loans due to their lack of experience, and it can be exhausting and embarrassing to ask from friends and family members for a loan.


While Singapore offers various grants to help startups in Singapore, they often require startups themselves to raise and commit an equal amount of funds, which may be difficult for cash-strapped individuals. SME loans in Singapore provide a quick and sizeable boost in funds, giving startup owners a much-needed peace of mind.


With business loans starting at 10K and potentially going up to 300K, they allow startup owners to focus their efforts on networking as well as growing and streamlining their business, greatly increasing the likelihood of their success.

Looking to jumpstart your business today? Contact us at R2D Credit to find out more about our SME loans for Singaporean companies.