The Singapore government has rolled out several initiatives to assist Small Medium Enterprises (SME) in Singapore to have better access to funding in which the Micro Loan Programme (MLP) is amongst one of them. It allows businesses to use this loan for daily operations, for automating or upgrading factory and equipment. Capitalize on us today to obtain that capital you need to make that next business move!
- Incorporated in Singapore with at least 30% local shareholdings
- Business to be established for more than 6 months
- Existing business corporate account
- Active transactions in the business corporate account for the latest 6 months
- Company Profit & Loss, Balance Sheet records for the latest 1/2 years depending on company establishment
- Personal Income Taxes for the latest 2 years > 24K
What You Can Qualify For
- 15K to 100k of unsecured micro loans from 2.9% p.a simple interest (effective interest 5.5% p.a)
- Processing Fee: From $500 to $1000
- Tenure: 1 to 4 years
1. How does Capitalize work?
We help our clients to obtain the business financing facilities they require from the lowest interest costs possible and at the quantum they need. According to their business nature, we’d also advise accordingly the most suitable facilities to meet our clients’ needs. We do not zoom in directly to the highest interest rates in the market but this is also subjected to approval on case to case basis depending on the company’s financial standing and profile. Should your company not be able to obtain any facilities at the current moment, we would advise you on areas for improvement so that you may qualify in future.
2. What is the lowest interest rate I can get?
Banks may revise their rates from time to time but as of today, the lowest rate that we can obtain for business owners is at an effective interest of 5.5% per year equivalent to simple interest 2.9% per year. However, do take note that there are also banks charging interest rates of up to effective interest 9.5% per year, equivalent to 5.2% simple interest per year. Rates are subjected to approval based on company’s financial standing and profile.
3. What is the maximum quantum I can get?
The maximum loan quantum a company can obtain under the Micro Loan Program is up to $100,000 in totality from across all banks and financial institutions.
4. What is the tenure or period like?
The tenure is typically between 1 to 4 years. It is subjected to approval based on the company’s repayment ability and the quantum approved.
5. How do I apply for the loan?
Do allow our trained consultants to conduct a preliminary assessment for you based on your documents to determine the maximum quantum we can obtain for you or if the quantum you’d require is achievable. Upon receiving your documents, our consultants will schedule an appointment with you.
6. What are the documents required?
The basic documents required for a preliminary assessment are:
a. Directors’ NRIC front and back
b. Directors’ Notice of Assessment (Income Tax) for the latest 1 or 2 years
c. Latest 6 months Company Bank Statements
d. Latest 1/2 years Financial Report (4 Line Statements/Profit and Loss, Balance Sheet) depending on establishment.
7. What are the processing fees I should be expecting from the banks/financial institutions?
The processing fee is a one time flat fee of $500 to $1000.
8. What is the timeline needed for the loan to be approved?
Upon receiving all the required documents in full, the processing time for an approval would range between 1 to 2 weeks and an additional 3 to 5 working days for account opening and loan disbursement upon signing of the Letter of Offer.
9. Are there any penalty charges for early repayment, be it in full or partial?
No. For micro loans, early repayment in full or partial has no additional penalty unlike business loans. However, most banks and financial institutions will required a written notice at least 1 month in advance for early repayment to occur.
How It Works
- Fill in the form for us to understand your business profile better.
- Allow us 3 working days to contact you upon receiving your form.
- Our Business Development Team will fix an appointment with you at your convenience to brief you on the entire procedure, advise you on how we can help you through our platform and lastly, obtain the necessary documents required for the application.
- Submission, *Approval and Disbursement
* It takes approximately 1 to 2 weeks for approval taking into account all the necessary documents must have been received. Disbursement will take another 3-5 working days upon signing of the Letter of Offer. We do not wish to over promise on the time frame but please be rest assured that we will most certainly do our best for you. Every client is important to us at Capitalize.
Did You Know?
The MLP programme was launched in 2001 to encourage banks to lend to young Small Medium Enterprises (SME) in Singapore, especially because they do not have a track record as established as older businesses.
The government takes on a shared risk with the banks for the MLP programme for the SMEs. It used to be 50% and has now increased to 70% since the Budget 2014, to spur further lending to SMEs.
Your company must have at least 30% local shareholding to qualify, meaning to say there must be 1 Singaporean/Singapore PR holding at least 30% of shareholdings in the company.