The SME Working Capital Loan is an unsecured facility under the Enterprise Financing Scheme, capped at S$500,000 per borrower. A Business Term Loan is an unsecured term facility that can be structured alongside it, so the total funding raised can go beyond the WCL cap while drawing less of your WCL quota. They are not competitors. In a well-structured case they are often used together.
Side by side
SME Working Capital Loan
- Under the Enterprise Financing Scheme, with government risk-sharing behind the bank
- Unsecured
- Capped at S$500,000 per borrower; S$5,000,000 across the borrower group
- Up to 5 years
- General working capital purposes
Business Term Loan
- An unsecured term facility
- Used alongside the WCL to extend total funding beyond the WCL cap
- Preserves WCL quota for later use
- Terms, quantum and pricing set by the lender per case
Why the combination matters
The Working Capital Loan stops at S$500,000. Your business might not. Where a case runs close to that ceiling, or needs to go past it, pairing a Business Term Loan with the WCL means the total raised can exceed what the WCL alone allows — and it uses less of your WCL quota in the process, which leaves room for a future facility.
Getting that pairing right is a structuring decision, not a product choice. It depends on what the funding is for, what your financials support and how each lender reads the combination.
Which do you need?
That is the wrong first question. The right one is what the money is for and what your numbers will support. The facility combination follows from that, not the other way round. See the nine facilities we arrange, or how borrowing capacity is assessed.
Approval, quantum, tenure and pricing on either facility remain the decision of the participating bank.
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.
