The best small business line of credit in Singapore for 2024
Businesses in Singapore know the advantages of acquiring a business credit card. But very little is known about the best small business line of credit. Businesses can avail many benefits by acquiring a business line of credit.
A business line of credit loan lets businesses borrow only a certain amount of sum. It is not necessary to borrow the full amount all at once.
The start-up business line of credit is best for businesses that require funds at irregular intervals of time. The best small business line of credit offers easy access to funds at low-interest rates.
Therefore, businesses in Singapore must know about the best small business line of credit.
What is the line of credit for a business?
The best small business line of credit serves as the ready source of funds for businesses. Businesses in Singapore get easy access to business lines of credit loans.
Borrowers can easily withdraw funds through business lines of credit cheques or bank transfers. However, a credit limit is set on the business line of credit loan.
Based on the lender-borrower agreement, the business line of credit loan is to be repaid on time along with the interest amount. The borrower is also given the facility of increasing the credit limit during the agreement of the business line of credit.
How does a business line of credit work?
The best small business line of credit is similar to a business credit card. With the business line of credit, your Singapore-based company gets access to funds.
Just like credit cards, the business line of credit loans also has a limit. Out of the total amount of available credit, businesses need to pay interest only on the sum they have withdrawn from the business line of credit.
Some business lines of credit loans keep revolving while others come with an expiry date. The revolving business line of credit has its benefits. Businesses need not reapply for it. Once the business line of credit loan is repaid, it can be reused.
Looking for a business credit card that suits your business needs? Check out our options on the best credit card for small business startups
Best options for a business line of credit in Singapore
You must have understood the importance of a business line of credit for your business in Singapore. It helps in improving the flow of cash in the business.
A business line of credit helps in grabbing fresh opportunities. Let's have a look at the best small business line of credit.
1. OnDeck
OnDeck is one of the leading firms for a business line of credit in Singapore. It offers both business lines of credit loans and term loans. OnDeck has a repayment term of 12 months.
With every withdrawal from the borrower’s side, the repayment term resets. OnDeck’s business line of credit loan amounts starts from $6000 to $100000.
Businesses should have a credit score of at least 625 to avail of the business line of credit loan. It initiates the amount of the fund on the same day.
Borrowers can receive the business line of credit only if their firm has been operating for a year. Businesses should have a minimum $100000 annual gross revenue.
2. Kabbage
What makes Kabbage the best small business line of credit is its tools for the management of cash flow. Kabbage offers a business line of credit loan ranging between $$2,000 and $250,000.
The repayment term is set between six to 18 months. The borrowers are required to pay the per-month loan fee for the business line of credit.
Businesses get insights into cash flow management through Kabbage’s mobile app. These tools are beneficial for small businesses in Singapore. Kabbage does not charge a penalty for prepayment.
3. Fundbox
For better decision-making and accelerating the funding process, Fundbox is the best small business line of credit. If you’re looking for a short-term business line of credit, Fundbox is the best solution for you.
Decisions are provided in less than five minutes, and the business line of credit loan is initiated as soon as the next working day resumes.
Fundbox offers multiple financing options to borrowers looking for a business line of credit. Businesses are entitled to receive a revolving business line of credit up to $150000.
It is to be repaid within a year or two. The bare minimum credit score of 600 is required to avail of this best small business line of credit. Businesses must operate for six months at least to avail of the credit option.
4. Wells Fargo
Triple business lines of credit are offered by Wells Fargo - Small Business Advantage, unsecured line of credit, and Prime Line of Credit. However, an unsecured line of credit is the best small business line of credit.
It helps in covering daily expenses and aid cash flow in the business. The unsecured line of credit provides a business line of credit loan ranging between $5,000 and $100,000.
Wells Fargo does not require collateral to provide a business line of credit. It is available at low-interest rates. Also, it keeps offering rewards. Businesses should be functioning for at least 2 years to avail of this credit option. It demands an annual fee after a year.
Benefits of a business line of credit in Singapore
If you’re planning for a startup in Singapore, you must know the following benefits of a business line of credit.
Better cash flow
The best small business line of credit helps in improving the cash flow of businesses. Better cash flow allows access to better business opportunities.
Lower interest rates
The business line of credit loan is available at low-interest rates. Businesses are required to pay interest only on the loan amount that is taken for business purposes.
Cover short-term expenses
When running your business, you will unintentionally encounter unforeseen situations, such as requiring additional capital to cover the gaps in cash flow or overcoming seasonal fluctuations in the market.
A business line of credit can help you pay these short-term expenses while focusing on the bigger picture in such situations.
Improves purchasing power
With a business line of credit in Singapore, you can take out as much money as you need for your business at any time because there is no minimum amount required.