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Understanding Unsecured Loan in Singapore
An unsecured business loan is a type of financing provided to businesses without the need for collateral. Unlike secured loans, where the borrower must pledge assets (such as property, equipment, or inventory) as security, unsecured loans are extended based on the borrower's creditworthiness and financial history. This makes unsecured loans particularly attractive for small and medium-sized enterprises (SMEs) or startups that may not have significant assets to offer as collateral.
Key characteristics of unsecured business loans include:
- Credit-Based Approval: Lenders evaluate the credit history of the business and its owners, along with other financial indicators like cash flow and revenue, to determine loan eligibility and terms.
- Higher Interest Rates: Due to the higher risk to lenders from not having collateral to fall back on in case of default, unsecured loans often come with higher interest rates compared to secured loans.
- Flexible Use: Funds from unsecured loans can typically be used for a wide range of business purposes, including operational expenses, expansion, inventory purchase, or to improve short-term cash flow.
- Quick Access to Funds: The application and approval process for unsecured loans is often faster than that for secured loans, as it involves less paperwork and no valuation of collateral. This allows businesses to access needed funds more quickly.
Experience the power of next-day cash with our unsecured business loans, tailored for companies with challenging credit histories and limited financial track records. At Tembusu, we believe in your potential and are dedicated to assisting your business. Our unsecured business loan offers competitive interest rates, flexible repayment terms, and swift approvals.
Our unsecured loan products are underwritten and disbursed by TBS Capital, a subsidiary of Tembusu Financial Services.
Why our Unsecured Business Loan
1 Day Loan Approval
Low Interest Rate
Flexible Payment
High Approval Rate
No Additional Charges
How to Apply for an Unsecured SME Working Capital Loan?
| Step 1: Initiate Your Application |
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Contact us at (+65) 6741 2588 or through our website to express your interest in an unsecured business loan. |
| Step 2: Submit Your Documents |
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Prepare and submit the necessary financial documentation to support your application. This includes bank statements, financial statements, and a detailed business plan highlighting your company's growth potential. |
| Step 3: Receive Expert Consultation |
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Take advantage of Tembusuf's depth of expertise in business financing. Our dedicated consultants will review your application, offering personalised advice and insights to ensure the loan structure best suits your business model and financial situation. |
| Step 4: Approval and Funding |
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Once your loan application is approved—typically within 1 day—our team will finalise the details and quickly disburse the funds. |
FAQs on Unsecured Loan & SME Working Capital
The primary difference lies in the requirement for collateral. Secured loans require some form of security (e.g., property, equipment), which the lender can claim if the loan isn't repaid. Unsecured loans rely on the borrower's credit history and financial stability, often resulting in slightly higher interest rates due to the increased risk to the lender.
SME working capital loans are designed for small and medium-sized enterprises (SMEs) looking to finance day-to-day operational needs. To qualify, businesses typically need to be registered and operating in Singapore, with the majority of shareholders being Singaporean or Permanent Residents.
Yes, startups and businesses with less-than-ideal credit may qualify for unsecured loans or SME working capital loans, especially if they demonstrate strong potential for growth and a solid business plan. However, terms and interest rates may vary based on perceived risk.
Singapore offers several government-assisted schemes designed to support SMEs, including special working capital loans where the government shares the risk with lenders. These programs often provide more favourable terms and conditions to encourage lending to SMEs.
Improving your business's financial health, maintaining a good credit score, providing a clear and viable business plan, and ensuring all your documentation is accurate and up-to-date can enhance your loan application's attractiveness to lenders.
Find out more about our unsecured business loan
Our team is always ready to answer questions about our unsecured working capital loan in Singapore and guide you through the application process.
Personal Loan
Accredited investors can get an unsecured loan to be used for various purposes.
Business Loan
Companies can get our loan for their business needs in the form of overdraft, fixed term loan and equity loans.
Mortgage Loan
We offer loans to companies and individuals secured against their property as collateral.
Caveat Loan
We offer loans to companies and individuals based on the equity in their property.
