Starting a business here is exciting – but it also takes money, planning, and the right mix of help. The good news is you have many options in Singapore, from government-backed loans and grants to flexible private facilities. In this guide, you’ll get a clear, practical path: which loans to look at first, how to boost your approval odds, what extra support you can tap, and even how someone with about S$1 million could structure their financing.
Disclaimer: This article is for general information only and should not be taken as financial advice. You should seek professional advice before making any business or financing decisions.
Table of contents
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- First stop: government-backed loans that de-risk your start
- Lower your costs: grants, tax relief, and wage support
- Thinking bigger? Patient and non-dilutive growth capital
- A practical S$1 million setup: how you could structure it
- How to improve your chances of getting a loan
- Build a strong financial foundation
- Create a compelling business plan
- Use collateral wisely
- Build trust with lenders
- Show your expertise
- Your action plan: where to go and who to talk to
First stop: government-backed loans that de-risk your start
When you’re just getting off the ground, banks may hesitate because you’re new. That’s why you’ll want to start with the Enterprise Financing Scheme (EFS). It isn’t a direct government loan; instead, you borrow from a participating bank while the government shares part of the risk. Because of that risk-sharing, approvals can be easier than a pure commercial loan.
Within EFS, the EFS – Trade Loan is the workhorse for many young firms. The maximum loan quantum has been permanently increased to S$10 million, which gives you meaningful room for working capital, asset purchases, or project needs as you scale. To qualify, your business should be registered and operating in Singapore, have at least 30% local shareholding, and keep within the group annual sales turnover (or employment) limits set under the scheme. You still apply through banks, but the government safety net helps your case.
Moreover, if you’re eyeing growth through acquisitions, note that the EFS – Mergers & Acquisitions track includes support for targeted asset buys – including intellectual property – within a stated window, underscoring Singapore’s push into knowledge-based growth. That can be powerful if your edge lives in software, patents, or brands.
Lower your costs: grants, tax relief, and wage support
| Scheme name | Brief description | Who can apply | Key benefit for startups | Application method |
| Enterprise Financing Scheme (EFS) – Trade Loan | Government-backed loan for working capital, asset acquisition, and project financing. Max. S$10M. | Registered in Singapore, 30% local shareholding, Group Annual Sales Turnover ≤ S$500M. | Access to substantial capital with government risk-sharing, easing bank approval. | Approach participating financial institutions. |
| Corporate Income Tax (CIT) Rebate & Cash Grant | 50% CIT rebate in YA 2025, min. S$2,000 for active companies with local employee. | Active companies with at least one local employee in 2024. | Immediate, automatic reduction in tax burden and direct cash flow relief. | No application needed (automatic). |
| Market Readiness Assistance (MRA) Grant | Supports overseas market expansion costs (promotion, business development, set-up). Max. S$100K. | Registered in Singapore, 30% local shareholding, Group Sales Turnover ≤ S$100M or Group Employment ≤ 200. | Defrays significant costs of internationalization, enabling global reach. | Submit application on Business Grants Portal via EnterpriseSG website. |
| Double Tax Deduction for Internationalisation (DTDI) | 200% tax deduction on eligible expenses for international market expansion. | Businesses planning overseas expansion. | Substantially reduces tax liability for global growth initiatives. | Claim in tax returns for 9 activities; apply via EnterpriseSG for others. |
| SkillsFuture Enterprise Credit (SFEC) | S$10,000 credit for workforce transformation initiatives and courses. | Eligible enterprises. | Offsets out-of-pocket costs for employee training and capability development. | To be implemented from Q3 2026 (current SFEC extended). |
| Workforce Development Grant (WDG) | Higher funding (up to 70%) for job redesign activities; streamlines application. | Eligible enterprises. | Supports investment in a skilled, adaptive, and future-ready workforce. | To be implemented from Q1 2026. |
| Long Term Investment Fund | Government capital for enterprises with longer/complex growth trajectories. >S$200M. | Enterprises with specific long-term growth profiles. | Patient capital for innovative ventures that require extended development. | Approach EDB/EnterpriseSG for details. |
| Private Credit Growth Fund (PCGF) | S$1 billion for flexible, non-dilutive financing for high-growth enterprises. | High-growth enterprises seeking custom solutions beyond traditional financing. | Access to substantial capital without diluting ownership. | Approach MAS for details. |
Even if you secure a loan, you should also reduce out-of-pocket costs. Several schemes help you do exactly that:
- Corporate Income Tax (CIT) rebate in YA 2025: active companies with at least one local employee in 2024 receive an automatic 50% rebate (min S$2,000). You don’t need to apply – this simply eases your cash flow.
- Market Readiness Assistance (MRA) Grant: planning to test a new overseas market? The grant cap is S$100,000, and it offsets costs for overseas promotion, business development, and set-up. Eligibility typically includes being registered in Singapore with ≥30% local shareholding, plus group size limits by revenue or headcount.
- Double Tax Deduction for Internationalisation (DTDI): claim 200% tax deductions on eligible international expansion expenses. For a set of nine common activities (like trade fairs or overseas marketing), you claim directly in your tax return; others require a simple application. The scheme has been extended to 31 December 2030, which gives you planning certainty.
- SkillsFuture Enterprise Credit (SFEC): a S$10,000 credit helps you co-fund approved training and workforce transformation. Pair this with the Workforce Development Grant (WDG) – which streamlines support and can fund up to 70% of job redesign work – to strengthen your team without straining your budget.
- Progressive Wage Credit Scheme (PWCS): if you’re raising wages for lower-wage workers, PWCS co-funds part of those increases so you can invest in your people and manage payroll sustainably.
Together, these supports reduce your breakeven point, free up more of each borrowed dollar for growth, and help you hire and train with confidence
Searching for the perfect place to start your business?
Thinking bigger? Patient and non-dilutive growth capital
Some business models need time – semiconductor tooling, deep tech, or platforms with long build cycles. If your roadmap is longer and more complex, look at these two avenues:
- Long Term Investment Fund: over S$200 million in government capital targets firms with longer or more complex growth paths. If your model needs patient capital, this is designed for you.
- Private Credit Growth Fund (PCGF): a S$1 billion pool offers flexible, non-dilutive financing for high-growth firms that don’t fit neatly into bank loans or equity. You can keep ownership while still raising sizable growth capital.
These funds exist because the government recognises a real gap in the market. Traditional banks often prefer safer loans with quick repayment, and even venture capital tends to look for fast exits or large equity stakes. But some businesses – especially innovative ones, or those that require heavy research and development – don’t fit that mould.
By offering patient capital and ownership-friendly funding, these schemes ensure that high-potential companies aren’t held back just because they take longer to mature. If your business model is highly innovative, needs significant R&D, or has a slower path to profitability, these funds could be the perfect fit.
A practical S$1 million setup: how you could structure it
Let’s imagine you’re launching “SwiftDeliver,” a tech-enabled logistics startup. You aim to invest S$1 million across software, a small fleet, a warehouse lease, and working capital. Here’s one clean way to put the stack together:
Founder/angel equity: S$300,000
This money comes from the founder or early private investors. It shows commitment and absorbs early risk, which banks and grantors like to see.
Government-backed loan (EFS – Trade Loan): S$500,000 to S$700,000
Despite the name, this scheme isn’t just for trade – it can cover working capital, buying assets, or funding projects. With its maximum loan limit set at S$10 million, it offers plenty of room to grow. Since the government shares the risk with banks, it’s often easier to get approved. This makes it ideal for a new company like SwiftDeliver that needs both flexibility and a large sum of capital.
Targeted grants: S$50,000 to S$100,000
- Market Readiness Assistance (MRA) Grant – If SwiftDeliver expands into regional markets early on, this grant can help cover costs like market research, business trips, or setting up a small overseas presence.
- SkillsFuture Enterprise Credit (SFEC) – This S$10,000 credit could go toward training the logistics team on new software, advanced supply chain management, or digital skills.
- Productivity Solutions Grant (PSG) / SMEs Go Digital – If SwiftDeliver invests in pre-approved tech tools such as route optimisation software or warehouse management systems, these programmes can co-fund part of the cost.
Private facility: S$100,000 to S$200,000
How to improve your chances of getting a loan
Whether you’re going for a government-backed loan or a private one, lenders want to know that your business is credible and financially healthy. The stronger your case, the better your chances of getting approved.
Essential factors for successful loan applications
| Factor | Why it matters | How to strengthen it |
| Credit score (Personal & business) | Demonstrates reliability and financial responsibility; impacts loan terms. | Pay bills on time, keep credit utilisation low (under 30%), monitor reports for errors, establish business credit with bureaus. |
| Business plan | Provides a strategic roadmap, demonstrates vision, and justifies loan usage to lenders. | Detail loan utilization, include realistic 3-5 year financial projections, outline growth strategies, assess risks with mitigation plans. |
| Cash flow & financial records | Proves ability to repay the loan; shows financial discipline and management. | Maintain accurate, up-to-date bookkeeping; provide clear cash flow statements and tax returns. |
| Collateral | Reduces lender’s risk, potentially leading to lower interest rates and better terms. | Evaluate assets (real estate, inventory, equipment), understand lender requirements, get professional appraisals, maintain asset condition. |
| Debt-to-equity ratio | Indicates financial leverage; lower ratios suggest greater capacity for new debt. | Manage existing debt levels responsibly; avoid excessive borrowing. |
| Lender relationship | Builds trust and can provide flexibility in loan terms and future financing. | Be transparent, communicate financial changes proactively, respond quickly to inquiries, ensure timely repayments on past loans. |
| Expertise & experience | Demonstrates capability and dedication to the business and industry. | Highlight relevant educational background, industry experience, and professional development. |
Build a strong financial foundation
Lenders look closely at both your personal and business credit scores. Before applying, it’s a good idea to check your credit reports for any mistakes and fix them early. For personal credit, always pay bills on time and keep your credit card balances low – ideally below 30% of the limit.
For business credit, register your company with major credit bureaus, pay your business debts (including supplier invoices) on time, and avoid maxing out your credit lines. In Singapore, a score above 900 can help you unlock better loan amounts, lower interest rates, and more flexible repayment terms.
Lenders will also want to see how money flows in and out of your business. That means having clear, accurate, and up-to-date financial statements – especially cash flow reports and tax returns. Neat bookkeeping shows that you’re financially responsible and capable of managing funds. Generally, having less existing debt , or a low debt-to-equity ratio, also works in your favour, as it means you have more capacity to take on new obligations.
These factors tie back to the classic “5 Cs of Credit”: Character, Capacity, Capital, Collateral, and Conditions. If you’re weaker in one area, you can sometimes make up for it by being stronger in another.
Create a compelling business plan
A solid business plan is one of the most powerful tools you can bring to a lender. It should clearly explain how you’ll use the loan, whether that’s for expansion, buying equipment, stocking up on inventory, or marketing.
It should also include realistic revenue forecasts and a clear growth strategy. Lenders want to see that you’ve thought about potential risks and have plans to deal with them. For best results, include financial projections for the next three to five years, with clear assumptions behind your numbers.
Use collateral wisely
Collateral is something you offer to secure the loan. It reduces the lender’s risk and can help you get better terms. This could be property, equipment, or inventory. You can also use alternative forms like personal guarantees, company shares, or accounts receivable.
Before applying, look at your assets, understand what each lender requires, and get professional valuations. Make sure your collateral is in good condition and well-documented.
Build trust with lenders
Trust can go a long way in the lending process. Be transparent about your finances and let lenders know early if there are any big changes or challenges ahead. Respond quickly to their questions, and keep them updated on your business’s progress.
If you’ve had loans before, making repayments on time and maintaining open communication can help you negotiate better terms for future loans. Some banks and financial institutions also have advisory services or offer special promotions during SME financing fairs or fintech events – these can be worth exploring.
Show your expertise
Finally, highlight your experience and qualifications. Share your educational background, industry experience, and any relevant certifications. Lenders want to see that you have the knowledge, skills, and commitment to make your business succeed.
Your action plan: where to go and who to talk to
You don’t have to figure this out alone. Here’s a simple path to move from idea to funding:
- Start at GoBusiness
Use the portal’s e-Adviser to identify schemes you qualify for and map the steps in the right order. This saves time and avoids missed support. - Book a free consult with an SME Centre
Advisors offer one-to-one guidance on grants, loans, market entry, and capability building. They can sanity-check your plan and your paperwork before you approach a bank. - Assess your tech readiness with CTO-as-a-Service (CTOaaS)
If digital tools are core to your model, this helps you spot gaps and pick the right, pre-approved solutions, often co-funded, which can improve your loan story and your margins. - Approach participating financial institutions (PFIs)
Ask about EFS – Trade Loan first. Bring clean financials, projections, a clear use-of-funds schedule, and your collateral list. If you plan overseas expansion, mention MRA/DTDI in your plan to show that your costs will be partly offset. - Sequence your applications
Submit your grant applications via the Business Grants Portal while you work with the bank on your EFS facility. Then add private tools (line of credit, equipment loan) to smooth operations once you start delivering.
Wrapping up
Starting and growing a business in Singapore comes with plenty of support if you know where to look. From government-backed loans that give you a strong financial foundation to targeted grants that reduce specific costs, and private financing that offers day-to-day flexibility, there’s no shortage of options to help you turn your ideas into reality.
The key is to combine these tools in a way that matches your business’s stage, goals, and cash flow needs. Plan carefully, keep your finances in order, and be clear with lenders about how you’ll use the funds. By taking a strategic, multi-source approach, you give your business the best chance to grow sustainably – while keeping control and managing risk along the way.
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