How a Business Loan Can Help SMEs Grow

To start a business, you need capital, which is the most inevitable aspect. Whether you run a small or big business, you need more money to expand it and earn more profit. One among the best ways to find sufficient money to invest in your business is by taking a business loan. There are several ways to develop your business using a business loan.

If you wish to start or expand your business that come under small and medium enterprises (SMEs) in countries like Singapore, you could go for a SME loan, which could be used to:

  • Expand or diversify your business
  • Develop infrastructure
  • Purchase inventory
  • Buy machinery
  • Hire staff
  • Invest in operational expenses
  • Improve marketing

With perfect funding and organizing, you can take your business enterprise to the next level.  This asks for planning ahead and utilizing the money in an appropriate way to generate income out of it. However, it is important to know why you need to borrow, and how does it help your business meet the financial requirement by borrowing money.

How to get a business loan for your SME online?

Before you borrow money that you need for your business in Singapore, the first thing you should do is to find the right lender. You can find several business loan lenders in Singapore that can help you with the best loan options to help your business with enough funding.

You can apply online to avail a business loan, which will help you to support daily operations or to expand your business. For this, you need to present your business loan application online, along with the required documents such as the last two years’ financial statements. You are not required to submit the financial statements if you apply through MyInfo Business or the Accounting and Corporate Regulatory Authority (ACRA). Nonetheless, you may have to furnish additional details depending on your situation.

The bank will e-mail the guarantors to endorse your application. Once you submit your application online successfully, you can track your loan application status on the banking platform of your bank. 

If approved, you will receive an offer letter, which you can accept either online or with the assistance of a relationship manger from the bank who will assist you with the process. On successful completion of all the processes and verifications, the loan amount will be disbursed, and you will receive a notification regarding this.

What are the benefits of taking a business loan for SME?

Small and medium businesses require investment in different stages such as in the beginning, during managing operations, maintaining inventory, and upgrading infrastructures or equipment. Therefore, it is inevitable for them to enhance resources and invest money for the improvement of business during various stages. In such a scenario, a small business loan will help the SME to steer things in a better way. You can go for a business loan for it is:

Easily available

With the development of online banking system, business loans are easy to avail. Today several banks are lending money without any collateral securities. In addition, the availability of an online business loan is much easier and quicker than other loans. This helps the small to medium ventures to carry out the business smoothly. Moreover, the online application process for the loan is simple and need minimal documentation.

Open to all types of businesses

Any business, whether it is big or small, can apply for a loan if it can meet the requirements. Even the companies that do not qualify for government approved loans can have business loans from private banks. 

Gives flexible repayment options

The loans offered for businesses come with flexible repayment options up to 5 years. To help the business people and investors, banks offer flexible repayment tenures with EMI options. You have the option to increase or decrease the EMIs depending on the financial condition of your company.

If you are a growing entrepreneur, you can always rely on a business loan for your business needs.


Dee is a well-respected business journalist with a deep understanding of global financial markets and a talent for uncovering the stories behind the numbers. With over 20 years of experience covering the business beat, Dee is known for his in-depth reporting and analysis of industry trends, as well as his ability to make complex financial concepts understandable to a wide audience.