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Is UOB Business Loan Singapore the Best Option?

Are you a business owner in dire need of help funding your business? 

You just came into the right place! 

It pains when your business is financially struggling. It is good that there are business loans like UOB Business Loans. However, you need to know more about it before you start your loan application.  

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Getting a Business Loan in Singapore

It’s a fact that managing a business’s operations, especially in the financial aspect, is very tricky. It needs extra care, and bold decisions have to be made. 

Is your business currently facing difficulties in funding your operations? 

If so, you might be considering applying for a business loan to support the financing of the business. Most business owners do it in case they cannot find an investor. 

If you are new to business loans, you better know what it is and how it works. Why? It is to know the risks you and your business may carry along the way. 

What is a business loan, anyway?

The definition of a business loan is money lent by a financial institution with the sole purpose of funding business expenses. 

The borrower will repay the fund with interest by following the loan’s terms and conditions. 

How will a business loan support my business?

You can use the borrowed money to help fund your business operations. To give you a clearer scenario, here are the most common reasons why business owners get such a loan: 

Business Expansion

If you see great potential growth in your business, you can invest in expanding. But remember that it costs you money. That might include advertising costs, renovations, an increase in staff, etc. 

You don’t have to use up your funds. Simply apply for a business loan and use it to cover the expenses. 

Business Inventory

It’s important to invest in your products before customers can buy them. Then, afterwards, you can offset your costs. 

This will help meet the demands of your customers. At the same time, your business can offer better options. 

But you can get a business loan if you do not have enough cash to offset your inventory expenses. This way, it won’t affect the funds. 

Business Cash Flow 

business cash flow to get a business loan

Unsold inventories mean it wasn’t converted into cash yet. And that affects the cash flow. Thus, it’ll be a problem if you have regular operational costs. For example, inventory, staff, utilities, rent, and/or mortgages.

On the other hand, with a short-term loan, you can stay away from difficulties. This is because the business loan will help you cover your operational costs. At the same time, especially when the business earns a low profit. 

You can still bring in customers and earn revenue. Slowly, your business can make up for the losses. 

Note: Lenders are evaluating the business’ history and financial status. It is to ensure if the business can pay for the loan or not. 

Moreover, in the case of start-up businesses, lenders consider them as “risky” borrowers. As a result, they often get rejected in applying for traditional business loans. 

Where can I apply for a business loan in Singapore?

It’s best to apply for a business loan from a trusted financial institution. 

Several banks offer business loans. However, these banks offer such financial services with different terms and conditions. 

One of the best local banks in Singapore to consider applying for business loans is UOB. 

United Overseas Bank (UOB) was one of the safest banks in Asia in 2019.

United Overseas Bank (UOB) Singapore

Apply for UOB Business Loan Singapore

UOB (United Overseas Banks) has been in service for 80 years. And it is making its name stand out in the financial industry. 

The institution paved the way to become a leading bank in Asia. This is because of being innovative in financial products and providing genuine services. 

UOB even received a series of accolades and awards in the industry. It is even known as the Best SME Bank in Asia. This proves the credibility of the financial institution.

UOB Business Loan Singapore

There are two schemes that you can apply under UOB Business Loans services. The Enhanced Working Capital Loan and the Temporary Bridging Loan schemes.

UOB offers these services under the Enterprise Financing Schemes of Enterprise Singapore. 

UOB Business Loan is only applicable to local businesses in Singapore. However, it’s an alternative way to support the business’s funds, especially during these pandemic times. 

UOB Business Loans in Singapore

Enhanced Working Capital and Temporary Bridging Loan Scheme

A business’s downfall is usually due to mismanagement. And that will greatly affect the business’ working capital, resulting in a negative state. 

To help aid this kind of scenario, you can apply to the Enhanced Working Capital Scheme or Temporary Bridging Loan Scheme.

Under enhanced working capital, you can secure your financing up to $1 million. There’s no collateral required, and you can repay the loan within five years. 

The Temporary Bridging Loan scheme applies to all businesses. You don’t need to pledge any asset upon application. You can get a one-day response rate, which can be repaid in a fixed five-year term. 

UOB Enhanced Working Capital and Temporary Bridging Loan Eligibility 

The following are the criteria before getting access to a business loan scheme:

  • Local enterprises include Sole Proprietor, Partnership, or Private Limited Company

  • The company must be at least three (3) years in business

  • The local company must be registered and operating in Singapore. 

  • It should at least have a 30% local shareholding. 

  • The group’s annual sales of a local enterprise should be less than or equal to $100m. Or it has a group employment size of less than or equal to 200. The computation for annual sales and employment size is on a group basis.**

**Only applicable for SME Working Capital Loan Scheme

UOB Business Loans Application

Firstly, save time applying for UOB Business Loans with MyInfo Business! 

All you need is your CorpPass and SingPass login credentials. Secondly, take advantage of its flexibility. This applies to Singaporean and PR Business Owners, Partners, and Directors. 

Frequently Asked Questions on UOB Business Loans

How can I reach UOB if I face problems with my business loan application? 

You can reach UOB through their Help and Support System: 

  • You can call them through the business banking hotline: 6259 8188
  • Request a Callback
  • Go to Branch Online Services

How much will the monthly instalments be?

UOB has a Loan Installment Calculator feature that a potential borrower can use. Therefore, you can use it to find out how much will be your estimated monthly instalments. 

What is Enterprise Singapore?

Enterprise Singapore is a government agency. It works with reputable, committed companies to build capabilities, innovate, and internationalize. 

In addition to that, the agency supports Singapore’s hub for global trading and startups. It builds trust in Singapore’s products. And it provides services and continues to deliver them in absolute quality. 

What is an Enterprise Financing Scheme?

Enterprise Financing Schemes (EFS) is under Enterprise Singapore. It covers six areas to help address the local enterprises’ financing needs: 

  • SME Working Capital Loan
  • SME Fixed Assets Loan
  • Venture Debt Loan
  • Trade Loan
  • Project Loan
  • Mergers and Acquisitions Loan

Note: If a business can’t pay the debts owed to the bank under Participating Financial Institution, Enterprise Singapore will share the loan’s default risk.

Final Say

In conclusion, obstacles are real and are all part of nature. Unfortunately, we can’t do anything about that. But we can control how we face and respond to difficulties a business encounters. 

Getting a business loan in UOB will help support your business’s finances. 

But if you’re still in doubt and want to know more about SME financing solutions, you can speak to UOB’s SME loan specialists.

Moreover, if you’re looking for a more flexible business loan product to help finance your business, Cash Mart can help you. Cash Mart is a licensed moneylender in Singapore, providing financial products and services for years. No assets are needed to be pledged, and expect a fast approval of your loan application.