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SME Working Up Capital Loan
An easy, collateral-free loan.
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It is the most common form of financing that allows businesses to obtain financing without collateral. Almost any business need can be met with them, from working capital to equipment purchases. A government assisted financing loan under the Enterprise Financing Scheme (EFS-WCL). The WCL is meant to help SMEs finance operational cashflow needs.
Designed for Small Businesses & Startups
LOW INTEREST RATES
As low as 4.5% p.a.
Subject to credit assessment
HIGH TENOR
Up to 60 months
Subject to credit assessment
HIGH LOAN AMOUNT
Up to $500,000
Subject to credit assessment
EXTENSIVE NETWORK LENDERS
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and more
Explore Our Other Loan Services
BUSINESS TERM LOAN
A business term loan is a type of commercial loan provided by a financial institution to a business entity for a fixed period, typically ranging from one to ten years. It involves a lump-sum amount of money lent to the business, which is then repaid with interest through regular installments over the agreed-upon term. Term loans are often used to finance various business needs, such as expansion, equipment purchase, working capital, or other long-term investments, and they are typically structured with a predetermined interest rate and repayment schedule.
INVOICE FINANCING
Invoice financing, also known as accounts receivable financing or factoring, is a financial arrangement where a business sells its outstanding invoices to a third-party financial institution (often a factoring company) at a discounted rate. This provides the business with immediate cash flow, as they receive a portion of the invoice amount upfront, while the financing company assumes responsibility for collecting the full invoice amount from the customers. Once the customers pay the invoice, the financing company releases the remaining balance to the business, minus a fee. Invoice financing helps companies access working capital and manage their cash flow more effectively.
PROPERTY-BACKED LOAN
A property-backed loan, often referred to as a secured loan or collateralized loan, is a type of loan in which the borrower pledges an asset, typically real estate, as collateral to secure the loan. If the borrower fails to repay the loan according to the agreed terms, the lender can seize and sell the pledged property to recover the outstanding debt. This collateral minimizes the lender's risk, allowing them to offer lower interest rates and larger loan amounts compared to unsecured loans, making property-backed loans a common choice for individuals and businesses seeking financing while leveraging their valuable assets as security.
PROPERTY REFINANCING
Property refinancing is the process of obtaining a new loan or mortgage to replace an existing one on a property, often with the aim of securing better terms or taking advantage of improved financial conditions. It typically involves paying off the current loan using the funds from the new loan, which can result in lower interest rates, extended loan terms, or accessing equity in the property. Property owners may refinance to reduce monthly payments, consolidate debts, finance home improvements, or capitalize on increased property values.
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Speak to our consultants today!
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Why get your SME Working Capital Loan through MSC United?We understand that choosing the right lender for your loan is crucial. MSC United stands out for its client-focused approach, offering customized financial solutions to meet the specific needs of small and medium-sized enterprises. Our competitive interest rates and transparent fee structure aim to provide a cost-effective option for businesses. We are committed to delivering a swift loan approval process, ensuring that businesses can access funds when needed. Our understanding of the local business environment and emphasis on customer service are geared towards supporting the growth and sustainability of SMEs in Singapore.
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How does the SME Working Up Capital Loan work?The Enterprise Financing Scheme - SME Working Capital Loan (EFS-WCL) in Singapore is designed to assist SMEs in financing their operational cashflow needs. It offers a maximum loan quantum of S$500,000 per borrower and up to S$5,000,000 for a borrower group. The loan tenure ranges from a minimum of 1 year to a maximum of 5 years. During the first year, borrowers are required to service only the interest, followed by principal and interest for the remaining period.
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What is the benefit of an SME Working Capital Loan?The benefits of an SME Working Capital Loan include access to financing of up to S$500,000 for SMEs, a repayment period of up to 5 years, no collateral requirement, attractive loan interest rates, low processing fees, and fast approval. These loans provide immediate funds to meet day-to-day operational needs like bridging cash flow gaps, managing inventory, paying suppliers, and addressing short-term financial obligations. They are essential for managing daily operational costs and seizing growth opportunities, especially for newer SMEs establishing a positive credit history.
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Why is working capital important to SMEs?Working capital is crucial for SMEs to finance short-term expenses such as utilities, staff salaries, inventory, and equipment rental, which are essential for day-to-day operations. Adequate working capital improves cash flow, provides a short-term cash boost, helps navigate sales fluctuations, opens up new business opportunities, and prepares businesses for unforeseen circumstances. It allows SMEs to maintain operations during slow periods, tackle temporary challenges, and seize growth opportunities.
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What are interest rates?In the context of Singapore's financial system, interest rates refer to the cost of borrowing money. A specific example is the Singapore Overnight Rate Average (SORA), which is the volume-weighted average rate of borrowing transactions in the unsecured overnight interbank SGD cash market in Singapore​.