SME Working Capital Loan

What is a SME Working Capital Loan?

As part of the Enterprise Financing Scheme (EFS), the SME Working Capital Loan was launched to help companies gain better access to working capital.

Enterprise Singapore partners with participating banks and financial institutions to bear up to 70% of credit risk in the event that a company defaults on the business loan.

To qualify for the SME Working Capital Loan, your company must be registered in Singapore. Your company must have at least 30% local shareholding, an annual sales turnover of not more than $100,000,000, and a company size of not more than 200 employees.

It allows companies to gain greater access to business loans of up to $300,000. The government-assisted financing scheme was first launched in 2016 to help small medium enterprises to tide over dry periods with sufficient working capital to meet cash flow needs.

As of 2022, it was recently extended to help more companies get through the Covid crisis.

Why Get the SME Working Capital Loan?

Along with the Temporary Bridging Loan, the SME Working Capital Loan has the LOWEST interest rates right now.

The SME working capital loan has low interest rates, a long repayment period, and a maximum loan amount of up to $300,000. To top it off, interest rate is charged on a reducing balance. 

Working capital refers to the cash that a business utilizes for daily operations and the general running matters of the business. As the saying goes — ‘cash flow is king’. What happens when a company does not have enough money to run its daily operations?

The SME Working Capital Loan in Singapore is a small business loan that provides companies with additional funds for daily operations. Business owners usually take up SME loans in challenging times, or when they want to expand their business.

Given the relatively low cost of funds, it can be a wise idea to use the business loan for general operating expenses, or to expand the operations of your business.

Before committing to any business loan, always calculate the monthly installment amount first, then consider if your business will have enough cash flow to make timely repayments. 

Get Funded Today To Grow Your Business!


  • Loan Amount: Up to $300,000
  • Interest Rate: 2.5% – 3.% p.a.
  • Repayment Period: 1 – 5 years


To qualify for the SME Working Capital Loan, your company must meet the following criteria:

  • Registered and operating in Singapore for at least 2 years
  • At least 30% local shareholding
  • Company turnover at least $300,000; and no more than $100 million
  • Total employment size not exceeding 200

Required Documents for Application

To apply for the SME Working Capital Loan, here are the documents that you will need to prepare:

  • NRIC or passport copy of company directors
  • Income tax Notice of Assessment of directors for the last 2 years
  • Company financial statements for the last 2 years
  • Bank statements for the last 6 months
  • ACRA Bizfile



General FAQ

What is the interest rate for SME Working Capital Loan?

Interest rate is between 2.5% - 3% per annum.

How much working capital loan can I get?

Up to $300K, depending on the financial strength of your company.

Which bank is best for working capital loan?

The best banks are DBS, OCBC and Maybank because they offer the best interest rates.

What is SME Micro Loan?

The SME Micro Loan is a business loan in Singapore with a maximum loan quantum of $100K.