Can I get a Business Loan in Singapore if I Have Bad Credit?

Written by

Hailey Ang

Edited by

Yannie Woon

Updated on: December 7, 2022

Please note that the content of this article is based solely on the opinions of the author. It has not been reviewed, commissioned, or otherwise endorsed by any of our network partners.

Share this article

Can I Get A Business Loan In Singapore If I Have Bad Credit

You may have heard that it’s difficult to get a business loan in Singapore if you have bad credit.

While it’s true that your options may be limited, it is still possible to obtain financing for your business. 

In this blog post, we’ll explore the ins and outs of getting a business loan with bad credit in Singapore.

What Is A Bad Credit Score?

First, let’s define what we mean by “bad credit”. A bad credit score typically refers to a credit score that is in the range of 1,000 and a crediting rating of HH. 

This means that you’ve had difficulty making payments on time or have defaulted on a loan in the past. If you have bad credit, you may find it difficult to obtain financing from traditional lenders such as banks.

Tips On How To Get A Business Loan With Bad Credit In Singapore

If you’re looking for a business loan but have bad credit, try these options.  

Approach An Alternative Lender

Don’t just focus on banks, which have lengthy approval lead times. Cast your net to other types of lenders. 

There are many alternative lenders in Singapore, and they’re typically willing to work with borrowers who have less-than-perfect credit. 

When applying for a loan from an alternative lender, be sure to emphasise factors such as your current cash flow and ability to repay the loan. Providing documentation such as financial statements and tax returns can also help improve your chances of qualifying for a loan. 

Of course, even if you do qualify for a loan from an alternative lender, it’s important to remember that the interest rates and terms will likely be less favourable than those offered by traditional lenders. 

As such, you should only take out a loan from an alternative lender if you’re absolutely certain that you can make the payments on time and in full. 

Ask A Friend Or Family Member For A Loan

This is often the most difficult option because it puts personal relationships at risk. 

However, if you have exhausted all other options, it may be worth considering. Be sure to draw up a contract that outlines the terms of the loan so that there is no misunderstanding down the road.

Look For A Licensed Moneylender

There are many reputable moneylenders in Singapore that are willing to give loans to small businesses with bad credit. 

However, be sure to do your research before selecting a moneylender as there are many unscrupulous lenders who charge high interest rates and fees.

Check that the moneylender is on the Ministry of Law’s list of licensed moneylenders. This list is updated regularly. 

Bad Credit Is Not The End Of The World 

There are several options available for small businesses in Singapore that need loans but have bad credit. The best option will depend on your individual circumstances. 

Be sure to do your research and select the option that is best for you and your business. With careful planning and execution, you can secure the funding you need to keep your business afloat and succeed in spite of your bad credit history.

Share this article

Recommended Reading

4 Steps To Find The Right Lender For Your Personal Loan

Updated February 3, 2023

A personal loan is like a car; it can take you to places you’ve never been before more often and much faster than the MRT. As someone who got her driver’s license near the age of 35, I can tell the difference. But back to personal loans. If these financial packages are like cars, your […]

Read More
Step By Step Plan: Make Sure You Made A Smart Decision To Get That ‘Luxury’ Item – Is That Investment Worth The Cost?

Updated January 18, 2023

I’ve noticed a common New Year resolution: giving up Starbucks. It’s like there’s this virtue in giving up more expensive things that bring you a bit of pleasure. Sure enough, you shouldn’t buy Louis Vuitton monthly if you’re barely paying your rent. But you shouldn’t postpone buying a zero-gravity massage chair if you have chronic […]

Read More
Stepping into Abundance: How to Make the Transition From Struggling to Succeeding

Updated January 16, 2023

I’ve often asked myself why some people struggle and others succeed. Money plays a crucial role, sure. If you come from wealth, chances are you’ll attract more of it. But things get really interesting when you see some struggling people succeed while others don’t. That makes me think it’s not just environmental or socio-economic factors […]

Read More