Working Capital

Download & Print Application or Apply Online

We know having sufficient working capital is key to the success of any business. We know you need a funding source that can provide you money quickly and easily without a lot of hassles. We also know that:  

You don’t want to change credit card processors like the other guys make you do

Banks take too long and often have requirements many business owners can’t meet

Partners, friends, family and other non traditional sources of financing aren’t very attractive, and
It takes money to make money! That is why we are here!  

Our application and approval process is simple. Typically a loan approval decision on a completed application will be provided within two business days.  Approved loans are funded in as a little as two to three business days.  

Why get your working capital from us? 

• Get Your Money Fast
• No Need to Change Credit Card Processors
• Simple, No Fee Application
• Competitive rates
• Very Little Documentation
• High Approval Rates
• Get up to $500,000
• Use the money for any business purpose
• Write off the Interest

 Facts

What Are Working Capital Loans?  

• They are short-term loans meant to increase your cash flow.
• They are often used to fund the daily operations of your business. 

What's The Difference Between Secured And Unsecured Loans?  

• Working Capital Loans can be secured or unsecured.
• A secured Working Capital Loan is one that is backed by an asset and/or personal guarantee.
1. The asset required can be a house, factory or inventory. They can be fully paid up assets or assets with existing mortgages or loans. 

2. How much collateral the bank or financial institution will ask for depends very much on their assessment of your ability to pay back the loan. 

3. The bank may also require personal guarantees from the owners and/or directors. They must be ready and willing to put up their own personal assets to back the loan e.g. family home, shares and stocks. 

• Lenders give unsecured loans only to borrowers whom they consider to be low or no risk. Start-ups are generally viewed as risky and are unlikely to be granted unsecured loans.

What Are The Common Types Of Working Capital Loans?

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• There are many different types of Working Capital Loans. To complicate matters, different banks use different terms to describe the same type of loan. 

• To help you better understand and select the right loan, here are some common types of Working Capital Loans: 

Overdraft / Line-Of-Credit  

• An overdraft allows you to draw funds beyond the available limit of your bank account. 

• The maximum amount you can overdraw is your line of credit. The terms and amount depend on the relationship you have with your banker and his/her assessment of your credit worthiness.

• Overdrafts are flexible and simple to operate. You pay interest only on the amount you have overdrawn. However, the interest rate charged is usually 1-2% above the bank's prime rate.

• Suitable for: All businesses and start-ups. 

Short-Term Loan  

• Unlike an overdraft, a short-term loan has a fixed repayment period - usually 12 months - and fixed interest rates.

• You may be asked to put up an asset as collateral for this loan.

• If your track record and relationship with the bank is good, the lender may even be willing to provide you with the loan without collateral.

• Suitable for: All businesses and start-ups.

Confirmed Sales Orders or Accounts Receivable  

• Loans based on confirmed sales orders or accounts receivable is another way to raise working capital.

1. If you need to fulfill a sizeable order of goods, but do not have the funds to do so, you may apply for a Working Capital Loan based on the value of the contract or order.

2. If there is new opportunity round the corner and you need funds to take advantage of it, you may apply for a Working Capital Loan based on the value of your accounts receivable. Accounts receivable is the amount of money you have billed your customers but have not yet received payment.

• If your customers are established and reputable, the lender may be willing to help ease your cash flow problems.

• Suitable for: All businesses. 

Loans for Buying & Selling Goods  

• There are special loan facilities for businesses that buy and sell goods, e.g. importers, manufacturers, exporters, etc.

• Letters of Credit, Inventory Loans and Trust Receipts are some examples. 

What Are Some of the Advantages and Disadvantages?

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Advantages  

• Working Capital Loans are quick sources of cash.
• They can help your business tide over cyclical downturns.
• They can be used to provide cash flow during short-term shocks e.g. when your key customer is declared bankrupt. 

Disadvantages  

• They can only be used to meet short-term cash needs - they are insufficient for long-term plans or projects that require more capital (cash or asset).
• You need to monitor your loans closely and make sure you repay them on time to avoid being blacklisted by credit bureaus and lending institutions. 

What Working Capital Loans does the Government Offer?  

Internationalization Finance (IF) Scheme

Need funds to expand overseas? Get a loan of up to S$15 million to buy fixed assets and finance your overseas projects or orders.  

Strengthen, upgrade and expand your business with the help of a fixed interest rate loan.  

Loan Insurance Scheme (LIS)

Secure loans by getting them insured against default. The Government will subsidise 50% of the insurance premium.  

Micro Loan Program

Very small businesses can get loans of up to S$50,000.  

Trade Credit Insurance (TCI) Program

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Get your accounts receivable insured against non-payment risk at rates normally available only to companies with substantial trade volume. You can apply for TCI Programs with trade financing to raise working capital.

Download & Print Application or Apply Online and find out how quickly we can get you money!

Contact Us at (877) 788.5558