Here are Some Online Loan and Funding Options for SMEs to Grow Businesses

Here are Some Online Loan and Funding Options for SMEs to Grow Businesses

Your new business or existing one may need funds to meet the expenses to keep the business running, meet the expenses, or take it to the next stage. By applying for a business loan from a bank, you can obtain the money your SME business requires. An online business loan will give you the money you need to meet the growing demands of your company.

Financing options abound in Singapore to assist companies in realising their organisational objectives. There are government-assisted SME financing schemes to meet the operational costs. Private banks, such as DBS, provide SMEs with numerous financing options that help them manage cash flow, make use of new business prospects, and cope with sales volatility.

You can develop your business with the right strategy, efficient management, and necessary funding in place. Your company will be able to fulfil its financial commitments if you prepare well and handle the loan finances responsibly. Some of the online business funding solutions for SMEs in Singapore are:

1. Working Capital Loans for SMEs

SMEs that have a minimum of SGD 100 million in group income and 200 workers are qualified for a business loan. They can avail of loans up to SGD 500,000 on flexible repayment terms ranging from 1 to 5 years, from the government in collaboration with private and public banks. SMEs like limited liability partnerships and ACRA-registered companies, with at least 30 percent equity held by PRs or Singaporeans can apply for the SME Working Capital Loan in Singapore.

2. Business Loans

To remain competitive, SMEs must develop their businesses and enter new markets. It requires them to maintain enough cash flow to be able to expand their operations. Compared to standard bank loans, DBS business loans are simpler to apply for and obtain. 

Nevertheless, a lot depends on the bank’s credit evaluation. A business loan is available to small and large businesses that have a steady cash flow and substantial annual sales. If an SME is not qualified for government-backed loans, it can approach a private bank for financial assistance.

With a leading bank, you can acquire a loan at a fair interest rate for a maximum of SGD 500,000 spread over five years. Additional advantages of using DBS to apply for online business loans include:

  • A simple-to-web application with information accessible at all times  
  • A digital application process
  • Competitive interest rates that help save money

3. Venture Debt Financing

Owing to venture debt finance, startups can now access additional funding sources (VDF). It works in tandem with the venture capital you currently have. The amount of the loan will typically range from 10% to 30% of the entire amount that you were able to raise via successful fundraising during the previous financing round. With VDF, you can:

  • Minimise total financing expenses.
  • Reduce the number of ownership holdings that are diluted.
  • Progress on growth-oriented initiatives
  • Obtain funds rapidly since lenders give priority to your prospects for future expansion.

Among the features of venture loan funding are: 

  • Facilitates effortless access to the DBS worldwide network
  • Enhances returns on equities
  • Facilitates the achievement of both adaptability and equity dilution.
  • Offers financial support to extend the runway
  • Assists in managing experienced business professionals 

A startup that has a viable business strategy and idea may be eligible for venture loan financing.

4. Accounts Receivable Purchase 

A purchase of accounts receivable involves capital principles about a company’s accounts receivable. Assets connected to outstanding bills that customers have not yet paid are known as accounts receivable. 

Accounts receivable buying has gained popularity in the modern era due to the development and integration of innovative technologies that help link company accounts receivable data with accounts receivable financing platforms. Generally speaking, obtaining finance for accounts receivable may be less difficult for a company than obtaining other types of capital investments. While large organisations can swiftly implement technology solutions, small businesses can fulfil the standards for accounts receivable financing more rapidly. 

The DBS Accounts Receivable Purchase contains several functionalities, such as:

  • It can enhance your cash flow by releasing ninety percent of your receivables.
  • Take advantage of credit security to prevent customers from missing payments.
  • Reconciliation services are typically obtained to increase productivity.
  • Time can be saved when the bank assumes responsibility for collection.
  • Credit protection against nonpayment by the buyer

Today’s SMEs may easily meet their immediate financing demands by applying for online business loans.


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