Facts Every SME Owner Needs to Know About OCBC Business Loans

Any business can’t start and expand without enough cash. That is why business loans and financing programmes have been created. Being competitive, OCBC Business Loans comes in various forms. It is suitable based on the entrepreneur’s needs. However, can these loans fit if you are an SME owner with limited securities? 

OCBC Business First Loan

This product is for businesses that have been registered and operating in Singapore for at least six months. But does not exceed two years. Take note that the company must not exceed 10 employees. Also, the annual turnover must be less than $1 million.

OCBC offers the Business First Loan under SPRING Singapore’s Micro Loan Programme. It is flexible as it is payable for four years. The application takes a day. Then, you will get the fund in 3 to 5 days.

However, you will need a guarantor. If you have too much pride to stand on your own, you need to forget it. So ask for help from someone who can be your guarantor. Also, be ready to pass the SPRING Singapore’s Micro Loan Programme’s eligibility.

OCBC SME Working Capital Loan

Working Capital Loan is for companies that have been incorporated in Singapore for at least two years. The 30% of the company’s shares must belong to a Singaporean or a Permanent Resident. The annual group sales must be less than $100m. Or the employees must be less than or equal to 200 individuals.

In addition, you can borrow up to $300,000 with tenure that stretches up to 5 years. Plus, it is collateral-free. But, you have to find a guarantor.

OCBC SME Venture Loan

SME Venture Loan is for businesses thriving for at least two years and can show a clear growth plan. The company must be registered and operating in Singapore with a sales turnover of less than $100m. Also, you must have 200 employees or fewer.

With this loan product, you can borrow up to $5 million with tenure that stretches up to six years. However, since the loan is under Singapore’s Venture Debt Programme, you must pass its eligibility. In addition, you need to show that your business has a clear development path. Alongside it is the transparent cash flow projections. The process usually takes three weeks or more.

OCBC Business Term Loan

Business Term Loan is under the unsecured OCBC business loans for companies operating for two years. It is with 30% of shares owned by a Singaporean or a Permanent Resident. However, you will need a guarantor. It allows you to borrow up to $500,000 for 5 years utmost.

They will release the funds in lump-sum. Therefore, it is best if you plan to make a massive purchase for your business. Also, do not forget to diligently pay the fixed monthly repayments to avoid penalties.

OCBC Business Overdraft

This loan is also under unsecured financing for Singapore registered entities that have been in operation for two years. You can enjoy collateral-free funding worth up to $200,000. Also, you get the amount you need by cashing your cheque. You will only be charged the interest rate based on the amount you use. Since the loan is unsecured, do not be surprised if you will need a guarantor.

OCBC Business Purchase Financing

This loan is specially created to help SMEs who need to pay their suppliers upfront. But has no cash available at hand. If your customers are expected to pay one to three months after your supplier delivers the goods, there will be a financial crisis. OCBC Business Loans offer to pay the supplier for you to bridge the gap. You need to submit the application form, your supplier’s invoices, and the transport documents.

This short-term loan is exclusive to paying your suppliers. In fact, your supplier will directly receive the amount you borrowed. It lacks flexibility. For payments, you can pay via auto-debit. Just make sure that you have enough funds in your account.

Cash Mart supports SMEs with a minimum turnover of $200,000. Do you need an unsecured flexible business loan without a guarantor? You can get it today. Talk to Cash Mart’s Loan Executive today.