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Business & Personal Financing

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Practical Guide

Knowledge-first financing guidance for Singapore businesses and individuals.

Explore grants, business loans, property financing, personal loans, and debt restructuring advice. PM us if you want help mapping your next step.

Grants & business loans Property & personal financing Debt restructuring advice

Common Misconceptions

Founder Belief vs Reality

Belief

"Government grants are too complicated to apply"

Reality

Many grants like PSG and EDG have streamlined application processes. With the right guidance, approval rates are high and the funding can cover up to 50-80% of costs.

Belief

"My business is too small for proper financial planning"

Reality

Small businesses need planning more than large ones - one bad decision can be fatal. Keyman coverage, cashflow management, and proper personal/business separation are critical.

Belief

"I can mix personal and business finances"

Reality

Mixing finances creates tax issues, makes you personally liable, and endangers your family's security. Separate accounts and structures protect both your business and personal assets.

Belief

"I should wait until I need money to explore financing options"

Reality

The best time to build banking relationships and understand your options is when you don't urgently need funds. Desperate borrowing often leads to unfavorable terms and rushed decisions.

Filter by your situation

What stage is your business?

What do you need funding for?

Business & Corporate Finance Topics

Explore the areas most relevant to your business needs

🎁 Business Grants

Business Grants in Singapore

A practical overview of government support schemes for Singapore businesses.

What are business grants?

Business grants are conditional support schemes offered by government agencies to help businesses undertake specific projects. They typically reimburse a portion of qualifying costs after project completion.

Not automatic

Subject to eligibility criteria and documentation

Reimbursement-based

You pay first, then claim back qualifying costs

Project-specific

Must align with scheme objectives and outcomes

Grant Categories

📈

Capability Development

Best for: SME, Growth stage

  • â€ĸ Business strategy and consultancy
  • â€ĸ Financial management systems

Docs: Project proposal, consultant quotations

đŸ’ģ

Digitalisation & Automation

Best for: All stages

  • â€ĸ Accounting, CRM, HR software
  • â€ĸ E-commerce and digital tools

Docs: Vendor quotations, solution specs

🌏

Market Expansion

Best for: SME, Scaling

  • â€ĸ Overseas market entry costs
  • â€ĸ Trade fairs and business development

Docs: Market entry plan, vendor quotes

đŸ”Ŧ

Innovation & Product Development

Best for: Startup, Tech

  • â€ĸ R&D and prototyping
  • â€ĸ Technology commercialisation

Docs: Technical proposal, IP considerations

đŸ‘Ĩ

Training & Workforce

Best for: All stages

  • â€ĸ Employee upskilling programmes
  • â€ĸ Job redesign initiatives

Docs: Training plan, employee records

🌱

Sustainability & Energy

Best for: F&B, Retail, Manufacturing

  • â€ĸ Energy-efficient equipment
  • â€ĸ Sustainability initiatives

Docs: Equipment specs, energy assessment

🏭

Sector-Specific Schemes

Varies by industry

  • â€ĸ Tourism, maritime, media sectors
  • â€ĸ Industry-specific agencies

Docs: Varies by scheme and agency

📋 Grant Application Journey

1

Eligibility Check

Verify criteria

2

Project Scope

Define outcomes

3

Quotations

Get vendor quotes

4

Submission

Apply via portal

5

Review

8-12 weeks typical

6

Approval

Letter of offer

7

Claims

Submit for reimbursement

⚠ Common Reasons Grant Applications Fail

SCOPE ISSUE

Not aligned to scheme intent

WEAK OUTCOMES

Unclear KPIs and deliverables

QUOTATIONS

Missing or non-comparable quotes

VENDOR DOCS

Poor vendor documentation

FINANCIALS

Incomplete financial statements

ELIGIBILITY

Wrong entity or shareholding

TIMELINE

Project timeline not realistic

CLAIMS PREP

Claims docs not prepared early

Key Government Grants Overview

Grant Focus Support Level Best For
Enterprise Development Grant (EDG) Capability, innovation, market access Up to 50% (70% for sustainability) SME / Growth
Productivity Solutions Grant (PSG) Pre-approved IT solutions Up to 50% All stages
Market Readiness Assistance (MRA) Overseas expansion Up to 50% ($100k cap per market) Expanding SME
Startup SG Founder First-time entrepreneurs Up to $50k (co-matching) Startup
Startup SG Tech Tech commercialisation Up to $500k-$800k Tech startup
Energy Efficiency Grant (EEG) Energy-efficient equipment Up to 70% F&B / Retail

💡 Planning Note: Grants are useful as a support layer, but strong business planning should not depend on grant approval. Build your project assuming no grant, then treat approval as a bonus.

PM us to check eligibility path

Share your business stage and what you're trying to build. We'll point you to relevant schemes to explore.

đŸĻ Business Financing

Business Loans & Financing

Understanding your financing options and what lenders look for.

What is business financing?

Business loans are repayable financing assessed based on your credit profile, cash flow, business history, and documentation. Various loan types serve different business needs at different stages.

Repayment required

Principal plus interest over agreed tenure

Credit-assessed

Based on business and director credit profiles

Purpose-driven

Clear use of funds improves approval

Types of Business Financing

đŸ’ŧ

Working Capital Loan

Funds day-to-day operations, inventory, payroll, and short-term needs.

Approval focus: Cash flow, revenue consistency

Needs stable income track record

📊

Term Loan for Expansion

Fixed amount with structured repayments for growth projects.

Approval focus: Business plan, financials

Requires clear purpose

🔄

Credit Line / Overdraft

Revolving facility to draw and repay as needed.

Approval focus: Banking relationship, turnover

Interest on drawn amount

📄

Invoice / Trade Financing

Unlock cash from outstanding invoices and receivables.

Approval focus: Debtor quality, invoice validity

Depends on customer creditworthiness

🔧

Equipment Financing

Purchase machinery, vehicles, or equipment with asset backing.

Approval focus: Asset value, depreciation

Asset serves as collateral

âąī¸

Short-term Bridging

Temporary financing for seasonal cash flow or timing gaps.

Approval focus: Exit clarity, repayment source

Higher rates for shorter terms

🚀

Startup Financing

Financing options for newer businesses with limited history.

Approval focus: Director profile, business plan

Stricter criteria, may need guarantees

📊 How Lenders Assess Business Loan Readiness

💰

Revenue & Cash Flow

Consistency and strength of income

High importance

📅

Time in Business

Operating history and track record

High importance

👤

Director Credit

Personal credit profile of key directors

High importance

âš–ī¸

Existing Liabilities

Current debt and obligations

Medium-high

🏭

Industry Stability

Sector-specific risk assessment

Medium

📋

Purpose & Documents

Clear use and supporting docs

Medium

⚠ Common Financing Mistakes to Avoid

Borrowing without repayment buffer

Always factor in buffer for unexpected slowdowns

Using short-term loans for long-term projects

Match loan tenure to the purpose of funds

Applying everywhere without preparation

Multiple rejections hurt your credit profile

Mixing personal and business cashflows

Keep clean separation for clearer assessment

💡 Government Support: The Enterprise Financing Scheme (EFS) provides government risk-sharing with participating financial institutions, which may improve approval chances for eligible SMEs. Ask about EFS-backed options when exploring financing.

đŸĸ Property Financing

Property Financing & Facilities

Financing solutions for property acquisition and investment — available for both personal names and company ownership.

🏠 Personal Name vs đŸĸ Company Ownership

👤

Personal Name

  • ✓ Lower interest rates (typically 0.5-1% lower)
  • ✓ Higher LTV (up to 75% for first property)
  • ✓ Simpler documentation requirements
  • ✓ Eligible for HDB loans and CPF usage
  • ✗ Subject to ABSD for additional properties
  • ✗ Personal liability exposure

Best for: Primary residence, first investment property

đŸĸ

Company Name

  • ✓ Liability protection (limited to company)
  • ✓ Corporate tax deductions on expenses
  • ✓ Easier multi-property portfolio building
  • ✓ Succession planning flexibility
  • ✗ Higher interest rates (commercial rates)
  • ✗ Lower LTV (typically 60-70%)

Best for: Investment portfolio, commercial properties

Types of Property Financing

🏠

Residential Mortgage

Financing for private condos, landed properties, and HDB flats.

  • â€ĸ LTV up to 75% (first property)
  • â€ĸ Tenure up to 30 years or age 65
  • â€ĸ Fixed, floating, or SORA-pegged rates

Personal ownership preferred

đŸŦ

Commercial Property

Offices, retail shops, shophouses, and mixed-use developments.

  • â€ĸ LTV up to 80% (varies by lender)
  • â€ĸ Tenure typically 20-25 years
  • â€ĸ Higher rates than residential

Both personal & company

🏭

Industrial Property

Factories, warehouses, B1/B2 industrial units, and logistics facilities.

  • â€ĸ LTV typically 70-80%
  • â€ĸ Tenure 15-25 years
  • â€ĸ JTC and private options

Commonly under company

âąī¸

Bridging Loan

Short-term financing when buying before selling existing property.

  • â€ĸ Typically 6-12 months tenure
  • â€ĸ Higher interest rates
  • â€ĸ Quick approval process

Timing-dependent solution

💰

Equity Term Loan

Unlock cash from existing property equity without selling.

  • â€ĸ Based on current valuation
  • â€ĸ Flexible usage of funds
  • â€ĸ Subject to TDSR limits

Leverage existing assets

đŸ—ī¸

Construction Loan

Progressive financing for land purchase and construction projects.

  • â€ĸ Disbursed in stages
  • â€ĸ Interest on drawn amount
  • â€ĸ Converts to term loan on completion

Development projects

Key Considerations for Property Financing

📊

TDSR Limit

Total Debt Servicing Ratio capped at 55% of gross monthly income

đŸˇī¸

Stamp Duties

BSD, ABSD (for additional properties), and SSD for early sale

📈

Interest Rate Risk

Consider rate movement for floating packages (SORA-based)

📋

Lock-in Period

Early redemption penalties typically 1.5% of outstanding

Documents Typically Required

👤 For Personal Name:

  • â€ĸNRIC / Passport
  • â€ĸLatest 3 months payslips / income proof
  • â€ĸLatest Notice of Assessment (NOA)
  • â€ĸCPF contribution history
  • â€ĸProperty OTP / S&P agreement
  • â€ĸExisting loan statements (if any)

đŸĸ For Company Name:

  • â€ĸACRA business profile
  • â€ĸLatest 2 years audited accounts
  • â€ĸBank statements (6-12 months)
  • â€ĸDirectors' personal guarantees
  • â€ĸBoard resolution for property purchase
  • â€ĸExisting facility letters
Discuss property financing options

Share your property goals and we'll help map out financing paths.

👤 Personal Financing

Personal Loans

Financing options for individuals — for personal needs, emergencies, or bridging requirements.

What are personal loans?

Personal loans are unsecured or secured financing extended to individuals based on their credit profile, income, and existing obligations. They can be used for various purposes including debt consolidation, home renovation, education, or personal emergencies.

Income-based

Loan amount typically tied to monthly income multiples

Fixed repayments

Structured monthly instalments over agreed tenure

Credit-assessed

Based on CBS credit score and debt obligations

Types of Personal Loans

đŸ’ŗ

Unsecured Personal Loan

No collateral required. Based purely on income and creditworthiness.

  • â€ĸ Up to 4-6x monthly income
  • â€ĸ Tenure 1-7 years typically
  • â€ĸ Interest 3.5%-10% p.a. (varies)

Quick approval

🔄

Balance Transfer

Transfer high-interest credit card balances to a lower-rate loan.

  • â€ĸ Promotional rates as low as 0%
  • â€ĸ Typically 6-12 month promos
  • â€ĸ Processing fees apply

Debt consolidation

🔨

Renovation Loan

Specifically for home renovation and interior works.

  • â€ĸ Up to $30,000-$100,000
  • â€ĸ Lower rates than personal loans
  • â€ĸ Requires renovation quotation

Purpose-specific

🎓

Education Loan

Finance tuition fees, certifications, or professional courses.

  • â€ĸ Covers local and overseas studies
  • â€ĸ Interest during study period
  • â€ĸ Repayment starts post-graduation

Invest in yourself

🔓

Personal Line of Credit

Revolving credit facility — draw and repay as needed.

  • â€ĸ Interest only on amount used
  • â€ĸ Flexible repayment
  • â€ĸ Annual fee may apply

Flexible access

🔐

Secured Personal Loan

Loan backed by collateral — property, shares, or fixed deposits.

  • â€ĸ Lower interest rates
  • â€ĸ Higher loan amounts possible
  • â€ĸ Asset at risk if default

Collateral required

📊 Key Eligibility Factors

đŸ’ŧ

Annual Income

Minimum $20,000-$30,000 p.a. for most lenders

📈

Credit Score

CBS credit report rating matters significantly

âš–ī¸

Existing Debts

Total debt-to-income ratio assessed

📅

Employment

Stability and tenure with employer

â„šī¸ MAS Unsecured Credit Rules

The Monetary Authority of Singapore regulates unsecured personal loans:

Income $20,000-$30,000

Maximum unsecured credit: 2x monthly income

Income $30,000-$120,000

Maximum unsecured credit: 4x monthly income

Income above $120,000

No regulatory cap (lender discretion)

Age requirement

21 years old and above (18 for some)

💡 Smart Borrowing Tips: Always compare EIR (Effective Interest Rate), not just advertised rates. Check for processing fees, early redemption penalties, and late payment charges. Borrow only what you can comfortably repay.

Discuss personal loan options

Share your situation and we'll help identify suitable options.

🔄 Debt Advisory

Debt Restructuring Advice

Guidance on managing and restructuring debt for healthier cash flow — for individuals and businesses.

When should you consider debt restructuring?

Debt restructuring isn't just for crisis situations. It's a proactive strategy to optimize your debt obligations, reduce interest costs, and improve cash flow. Consider it when:

High Interest Burden

Significant portion of income goes to interest payments

Multiple Debts

Managing multiple loans with different rates and tenures

Cash Flow Strain

Monthly repayments affecting operational or personal needs

Better Rates Available

Interest rates have dropped since you took your loans

Income Changes

Salary cut, job change, or business revenue decline

Life Events

Marriage, children, medical issues affecting finances

Debt Restructuring Options

👤

For Individuals

Debt Consolidation

Combine multiple debts into one loan with lower interest rate.

  • â€ĸ Single monthly payment
  • â€ĸ Potentially lower total interest
  • â€ĸ Simplified management

Balance Transfer

Transfer credit card balances to promotional 0% or low-rate plans.

  • â€ĸ Interest savings during promo
  • â€ĸ Breathing room to pay down principal
  • â€ĸ Watch for post-promo rates

Mortgage Repricing/Refinancing

Switch to lower interest rates on existing home loan.

  • â€ĸ Significant savings on large loans
  • â€ĸ Consider lock-in penalties
  • â€ĸ Factor in legal/valuation fees

Debt Management Programme (DMP)

Formal arrangement through Credit Counselling Singapore.

  • â€ĸ For serious debt situations
  • â€ĸ Negotiated with creditors
  • â€ĸ Structured repayment plan
đŸĸ

For Businesses

Facility Restructuring

Renegotiate terms with existing bankers for better rates or tenure.

  • â€ĸ Extend repayment tenure
  • â€ĸ Lower monthly obligations
  • â€ĸ Maintain banking relationship

Debt Refinancing

Replace existing debt with new financing at better terms.

  • â€ĸ Shop across multiple lenders
  • â€ĸ Consider EFS-backed options
  • â€ĸ Compare total cost of financing

Asset-Based Restructuring

Use business assets as collateral to secure better rates.

  • â€ĸ Property, equipment, receivables
  • â€ĸ Lower rates with security
  • â€ĸ Asset at risk if default

Creditor Negotiation

Work with creditors to modify payment terms during difficulty.

  • â€ĸ Payment holidays
  • â€ĸ Interest rate reduction
  • â€ĸ Principal haircuts (rare)

📋 Debt Restructuring Process

1

Assessment

List all debts, rates, tenures

2

Analysis

Identify high-cost debts

3

Options

Explore restructuring paths

4

Execution

Apply and implement

5

Monitor

Track and adjust as needed

⚠ Warning Signs You Need Help

Minimum payments only

Can only afford minimum on credit cards

Borrowing to repay

Taking new loans to service old ones

Creditor calls

Receiving calls from collections

Using savings

Emergency funds depleting for repayments

If you're experiencing these signs, seek help early. The sooner you address debt issues, the more options you'll have.

📚 Helpful Resources:

  • â€ĸ Credit Counselling Singapore (CCS) — Free debt counselling for individuals
  • â€ĸ Association of Banks in Singapore — Financial hardship assistance schemes
  • â€ĸ MoneySense Singapore — Financial education and planning resources
Get debt restructuring advice

Share your debt situation confidentially. We'll help explore options together.

Grants vs Loans Comparison

Understanding the key differences helps you identify what may be relevant to your situation.

Factor 🎁 Business Grants đŸĻ Business Loans
Repayment Required No Yes + Interest
Approval Basis Project fit, eligibility, documentation quality Credit profile, cash flow, business history
Speed to Funds
8–12+ weeks Requires project completion + claim
1–4 weeks Once approved, funds disbursed quickly
Documentation Intensity
High
Moderate
Best For Specific projects: digitalisation, capability upgrading, expansion Working capital, equipment, cash flow bridging
Risk if Business Underperforms May not complete project or receive reimbursement Still required to repay loan obligations

Documents Checklist

Common documents you may need to prepare. Specific requirements vary by scheme and lender.

📋 For Grant Applications

  • ☐ ACRA Business Profile
  • ☐ Latest Financial Statements (audited if applicable)
  • ☐ Bank Statements (if required)
  • ☐ Project Proposal with scope and outcomes
  • ☐ Vendor Quotations (itemised breakdown)
  • ☐ Vendor credentials / certifications
  • ☐ Supporting evidence (varies by scheme)

📋 For Loan Applications

  • ☐ ACRA Business Profile
  • ☐ Latest Financial Statements (1-2 years)
  • ☐ Bank Statements (3-6 months)
  • ☐ Directors' NRIC and personal particulars
  • ☐ Outstanding liabilities schedule
  • ☐ Intended use of funds (simple breakdown)
  • ☐ Supporting contracts / invoices (if applicable)

Frequently Asked Questions

Common questions about business grants and financing in Singapore

Can I apply for both grants and loans at the same time?

Yes, grants and loans serve different purposes. Grants typically cover project costs while loans provide working capital. They can complement each other in your financing strategy. However, you cannot use grants to repay loans or vice versa.

How long does grant approval take?

Timeline varies by grant type. EDG typically takes 8-12 weeks for review. PSG with pre-approved solutions may be faster. Complex projects or applications requiring clarifications may take longer. Plan your project timeline accordingly.

What if my grant application is rejected?

You can typically re-apply after addressing the feedback. Common reasons include weak project scope, incomplete documentation, or eligibility issues. Review the rejection feedback carefully and strengthen the weak areas before resubmitting.

Do startups qualify for business loans?

Some lenders offer startup financing, though criteria differs. Government-backed schemes like Enterprise Financing Scheme may have more flexible requirements. Track record and cash flow history remain important factors. Director's personal credit profile often plays a bigger role for newer businesses.

What is the Enterprise Financing Scheme (EFS)?

EFS is a government risk-sharing scheme that helps SMEs access financing from participating financial institutions. The government shares a portion of the loan risk (up to 70% for some categories), which may improve approval chances for eligible businesses.

Are grants taxable in Singapore?

Grant treatment varies. Generally, grants used to offset revenue expenditure are taxable while those for capital expenditure may have different treatment. Consult a tax professional for your specific situation as this depends on the nature of the grant and how the funds are used.

Where do I apply for government grants?

Most government grants are applied through the Business Grants Portal (BGP) at businessgrants.gov.sg. Some schemes may have different application channels through specific agencies. You'll need a CorpPass account to access the portal.

What is the minimum shareholding requirement for grants?

Most grants require at least 30% local shareholding (Singapore Citizens or Permanent Residents). This is determined by the ultimate individual ownership. Corporate shareholders are traced to their individual owners.

Can I start my project before grant approval?

Generally, no. Most grants require that the project has not commenced before the Letter of Offer is issued. Starting work, making payments, or signing contracts before approval typically disqualifies those costs from reimbursement. Always check the specific grant's terms.

How do I improve my loan approval chances?

Key factors: maintain clean and up-to-date financial records, keep personal and business finances separate, ensure director's credit profile is healthy, have a clear purpose for the funds, and prepare all documents before applying. Consider EFS-backed options if you meet eligibility criteria.

Want a simple funding path?

PM us your business stage, purpose, and timeline. We'll suggest whether grants, loans, or a mix makes sense to explore.

PM us

This page is for educational purposes only. We do not guarantee any grant approval or loan outcomes.