Ledger and calculator on a warehouse counter, representing working capital cash flow

Working Capital Loan

Flexible Working Capital Loan Solutions for Your Business

$500K Up to, shared across banks
1-5 yrs Tenure
4.2-5.4% Flat rate p.a.
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Facility Execution Workflow
STAGE 1

Application

Financial & Credit Assessment

Review
STAGE 2

Credit Approval

ESG Participating Bank Facility

Disburse
STAGE 3

Disbursement

Direct Account Funding

Key features

Regulatory & Government Framework (EnterpriseSG EFS-WCL)

The Enterprise Financing Scheme – SME Working Capital Loan (EFS-WCL) is administered by Enterprise Singapore (EnterpriseSG) in partnership with Participating Financial Institutions (PFIs) such as DBS, OCBC, UOB, Standard Chartered, Maybank, and CIMB. EnterpriseSG provides a 50% to 70% risk-share to participating lenders against default, incentivizing banks to extend unsecured credit to smaller enterprises without pledging fixed physical assets.

Underwriting Mechanism ("Program Lending")

Under standard program lending, banks evaluate applications using scorecard algorithms based on:

  1. Past 6 months of corporate bank statements (monitoring average daily balances, bouncing cheques, and credit turnover).
  2. The company's latest 2 years of financial statements (assessing Debt Service Coverage Ratio: DSCR >= 1.25).
  3. Personal CBS credit rating of the directors/guarantors (ideally Grade AA–BB, minimum 1,850+ score).

Flat Rate vs. Effective Interest Rate (EIR)

The advertised flat rate (e.g., 4.5% p.a.) calculates interest on the initial principal across the entire tenure. Because the principal is progressively paid down every month, the actual Effective Interest Rate (EIR) is roughly 1.85x the flat rate (e.g., 4.5% flat ~ 8.35% EIR reducing).

Early Repayment Advantage

Government-assisted EFS-WCL facilities prohibit lock-in penalty fees for early redemption, allowing businesses to draw capital for short-term cyclical needs and settle early to eliminate future interest costs.

Direct Lender Matching

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