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.
Approval applicable for a year
Rates as low as 1.5% per month and 5% processing fee
Stretch out your repayment to a year, no prepayment penalty.
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 |
Quantity | Adjustable within authorized boundaries | Set upon approval |
Duration | Adaptable within approved restrictions | Set upon approval |
Charges and Interest | Activated upon usage | Right after the payment is made |
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.
A cashline offers the flexibility to meet short-term surges in order volumes, facilitating the ability to onboard new employees or acquire stock.
A postponement in payment from the purchaser could lead to temporary liquidity disruptions. Utilizing a cashline provides an extra cushion for your cash flow.
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.
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 |
|---|---|
Tenor | Up to 12 months |
Interest Rate | 1% - 3% per month |
Processing Fee | 5% |
| 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 |
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.
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