Line of Credit

Be ready for any unexpected emergencies.

A line of credit provides you with the confidence of having enough cash flow to navigate short-term liquidity challenges. Never be taken by surprise during sudden increases in orders again.

Pre-approved amount up to 3x monthly cashflow

Approval applicable for a year

Pay interest and fees only when you draw down

Rates as low as 1.5% per month and 5% processing fee

Repayment tenor up to 1 year

Stretch out your repayment to a year, no prepayment penalty.

What sets apart a Line of Credit from a Business Loan?

A line of credit, as the name implies, is a service provided to you for a set period. This allows you the flexibility to access the service whenever needed. It proves beneficial when uncertain about the exact timing and amount of funds required. Avoid being idle with borrowed money, incurring interest without utilizing the funds. In contrast, a business loan is disbursed immediately upon approval with predetermined amount and duration.

Line of Credit Business Term Loan
Period of Drawdown
Up to 1 year
Upon approval
Adjustable within authorized boundaries
Set upon approval
Adaptable within approved restrictions
Set upon approval
Charges and Interest
Activated upon usage
Right after the payment is made

When can a Line of Credit be beneficial?

Loan disbursement usually aligns with that of a business term loan, which is unsecured and can amount to a maximum of three times your monthly cash flow. The primary distinction lies in the flexibility of disbursement timing. Here are some common reasons why opting for a line of credit could be advantageous. It’s important to highlight that a business term loan and a line of credit are not mutually exclusive; you can have both to provide an added buffer when needed.

Unexpected increase in demand for products

A cashline offers the flexibility to meet short-term surges in order volumes, facilitating the ability to onboard new employees or acquire stock.

Payment from the buyer has been postponed.

A postponement in payment from the purchaser could lead to temporary liquidity disruptions. Utilizing a cashline provides an extra cushion for your cash flow.

Replacement of Equipment

An unexpected requirement for a significant ticket buy can impact crucial operational cash flow. A cashline offers reassurance by ensuring liquidity in case of an unforeseen event.

Tip: Business term loans and cashlines can complement each other, offering added financial support when needed without overlap.

How does it work?

Simply put, after you access your line of credit, it functions similarly to a commercial term loan. Monthly, you must repay both interest and principal following an even repayment plan. Below are some important terms you should keep in mind:

It is crucial to highlight that even though a credit line receives pre-approval, the lender is not obligated to fulfill the drawdown request. This situation introduces the possibility of the lender retracting the line when needed, emphasizing that a line of credit is not a substitute for a business term loan.

Amount Up to 3x monthly cashflow
Up to 12 months
Interest Rate
1% - 3% per month
Processing Fee
Business registration Established in Singapore (including Limited Liability Partnership, Sole proprietorship)
Ownership of the business
The company must be owned by Singaporeans / Permanent Residents for a minimum of 30%
Shareholders' credit history
Absence of any previous default records
Business operational duration
At least a 3-month track record of generating revenue
Business registration Incorporated in Singapore (including LLP, Sole proprietorship)
Business ownership
At least 30% of the company owned by Singaporeans / PR
Credit of shareholders
No existing default records
Time in operations
At least 3 months of operating revenue

Get up to $100 in vouchers upon applying for your Line of Credit with our services.

Why get your your Line of Credit through Bankchamp?

A supportive team is at your service:
Our dedicated team will guide you through the entire loan process and assist you with the necessary market research.

We facilitate competition among lenders for your loan:
Prepare to have many options when we assist you in comparing the top deals from various banks and non-bank lenders to secure the lowest interest rate and the highest cash out amount available. Our rates are on par with or even exceed what traditional banks offer.

Save time with a single application:
Easily compare offerings from over 45 lenders through just one application.

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