The SME Working Capital Loan is an unsecured working capital facility offered by participating banks under Enterprise Singapore’s Enterprise Financing Scheme. It is capped at S$500,000 per borrower, with a maximum repayment period of 5 years. The loan is issued by the bank, not by the government, and approval is the bank’s credit decision.
Published scheme terms
- Maximum loan quantum: S$500,000 per borrower
- Borrower group limit: S$5,000,000 across the group
- Maximum repayment period: 5 years
- Local equity required: 30% held by Singaporeans or PRs
- Group annual sales turnover: not exceeding S$500m to qualify under the scheme
- SME definition: group revenue up to S$100m, or a maximum employment size of 200
Source: Enterprise Singapore, Enterprise Financing Scheme (SME Working Capital Loan). Figures are published by Enterprise Singapore and may change.
It is unsecured
The SME Working Capital Loan does not require the business to pledge an asset. That does not make it automatic: because there is no security, the lender leans harder on the financial profile, the credit history and the personal guarantee of the directors. See what a personal guarantee means.
What the cap means in practice
S$500,000 per borrower is a ceiling on this facility, not a ceiling on your total funding. Where a case runs close to that limit or needs to go past it, a Business Term Loan can be structured alongside the Working Capital Loan so the total raised can exceed what the WCL alone allows, while drawing less of your WCL quota. That is explained in working capital loan vs business term loan.
Who it suits
Businesses with ongoing operational cash needs: payroll, suppliers, stock, the gap between doing the work and being paid for it. It is a general-purpose working capital facility rather than a loan tied to a specific asset or contract.
Eligibility under the scheme is a starting point only; the bank still assesses your company’s financial position, existing liabilities and credit profile. See the full SME loan requirements.
Talk to us about your case
Every business is different, and the only honest way to answer “can we get this funded” is to look at your numbers. Send us your company name, roughly how much you need and what it is for, and we will tell you whether there is a case worth building. Speak to us, or read how it works.
Cornerstone Capital Services Pte. Ltd. (UEN 202622107K) is a business financing consultancy and is not a bank or a licensed moneylender. Loan approval, final quantum, tenure and interest rates are determined solely by the participating financial institutions and are subject to their credit assessment. Scheme figures shown are published by Enterprise Singapore and may change.
