Are you a small business owner in Singapore who has explored a variety of business financing options but can’t find what’s best for you? If you’re looking for financial support aside from banks and traditional financial institutions, and need more information on alternative business financing, we have the guide for you! Funding Societies is an SME digital financing platform that provides business financing for small and medium-sized enterprises (SMEs). Our variety of SME loan, virtual card, and expense management products provide fast and easy access to capital and expense management that can help you grow your business and take it to the next level. 

We’ve been around for more than seven years and have a core set of products, but also continually refine our services to suit today’s SME financing needs. This blogpost will give you a complete introduction to our SME loan, virtual card, and expense management products, and explore how they can benefit your business. We’ll talk about their loan amounts, repayment terms, eligibility criteria, and more. So if you’re ready to learn more about how Funding Societies can help you get the funds and financing tools you need to succeed, keep reading!

Funding Societies offers two main categories of products: 1) Lending 2) Virtual Card and Expense Management.

Funding Societies offers a variety of loan products tailored to the needs of SMEs. These include Micro Loan, Term Loan, Accounts Payable Financing, Invoice Financing, Supply Chain Financing, Property-backed Secured Financing, and Revolving Credit Financing. 

1. Micro Loan

What is it?

A micro loan from Funding Societies is designed for businesses that need quick access to funds without the hassle of traditional bank loans. It offers fast approval times and flexible repayment terms. This type of loan is best suited for businesses that need short-term capital to cover operational costs or bridge cash flow gaps. Funding Societies provides micro loan SME financing starting from S$3,000 and topping out at S$100,000. 

We have made it easy to access unsecured micro financing. That means as a small business owner, you can apply for one conveniently on your mobile phone or computer, something you typically cannot do with traditional lenders who need you to visit their physical branch.

Recognising that small businesses need funds urgently as working capital, the application process on our website takes no longer than a few minutes, and funds can be disbursed to qualified businesses within 24 hours of approval and offer acceptance. There are also no penalty fees for early repayments.

Who is eligible?

For your business to qualify for a Funding Societies SME micro loan, it must be a registered business in Singapore, and that goes for sole proprietorships as well. It also must have operated for at least six months and have a minimum of 30% local shareholding.

What can an SME use a micro loan for?

• Working capital
• One-off expenses
• Expansion of business for a new office space or renovation
• Refurbishment and funding of urgent projects
• Inventory and supplies purchases
• Improving cash flow for daily operations
• Machinery and equipment purchases

2. Term Loan 

What is it?

A term loan from Funding Societies is designed to provide long-term capital for businesses that need to finance larger projects or investments. This type of loan is best suited for businesses that need long-term capital for investments in equipment or property. Funding Societies issues two types of term loan financing between S$100,000 and S$2 million – Express Business Term Loan (BTL) and Business Term Loan.

1. Express BTL
   1. Loan Quantum: S$100,000 to S$200,000
   2. Processing Time: About 1 week
   3. Loan Tenor: Up to 18 months
2. BTL
   1. Loan Quantum: S$100,000 to S$2,000,000
   2. Processing Time: Up to 2 weeks
   3. Loan Tenor: Up to 12 months

Note: other criteria may apply, depending on the customer’s industry.

Who is eligible?

A small business is eligible for term loans if it: 

• Is registered in Singapore
• Has been operational for more than 2 years
• Has a minimum turnover of S$500,000 yearly
• Has a minimum 30% shareholding by a Singapore citizen or Permanent Resident Director

What can an SME use a term loan for?

Similar to the micro loan, SMEs can use a term loan to expand the business, buy heavy machinery and equipment, purchase supplies, supplement working capital, and fund emergency projects.

3. Accounts Payable (AP) Financing

What is it?

Accounts Payable (AP) Financing from Funding Societies allows businesses to access working capital by using their accounts payable as collateral. Our AP Financing product helps businesses with worldwide purchases, covers the entire cost of manufacturing, as well as shipping of the goods. You only need to send us the invoice from your supplier, and we will take care of the payment on your behalf.

Funding Societies issues two types of AP Financing:

• Express AP Financing: This SME loan in Singapore offers a loan quantum up to S$100,000 with up to 60 days tenor. You will only need a minimum of four basic types of documentation to apply, stated further down in this section.
• AP Financing: Borrowers can apply for up to S$500,000 on a loan term of up to 90 days. During the application, you will have to provide a minimum of 10 documents.

How AP Financing Works in four simple steps:

1. Apply for AP Financing online.
2. Show Funding Societies the invoices.
3. We will pay your supplier within 3 days upon approval.
4. Repay the short-term online loan within 90 days.

Who is eligible? 

All Singapore registered businesses and only Pte Ltd Co. or LLP Incorporated with an operating history of more than 12 months are eligible to apply for Funding Societies’ AP Financing product. Additionally, applicants cannot be more than 30 days past due in current or previous loans/facilities with Funding Societies.

Documents needed for your application:

• Statements of your business accounts from the last six months.
• The most recent NOA and CBS report, in addition to the director’s or shareholder’s NRIC or passport.
• The most up-to-date invoices and payment records from the supplier.

Please note that we may need further paperwork as we individually evaluate each application for an AP Financing loan. We will contact you shortly after reviewing your application.

4. Accounts Receivable (AR) Financing

What is it?

Funding Societies’ Accounts Receivable Financing offers SMEs the opportunity to access a revolving line of credit with a maximum limit of S$1 million. This financing option allows businesses to unlock the cash tied up in their unpaid invoices quickly and easily, which is most suitable for businesses with regular invoicing cycles who are looking for fast access to working capital without having to take on additional debt.

SMEs can access up to 80% of the value of their unpaid invoices, allowing them to bridge cash flow gaps and invest in growth opportunities. This quick access to funds can be used for anything from paying suppliers and staff salaries, to investing in new equipment or expanding operations. The remaining 20% will be paid out to your business by Funding Societies once your customer has paid off their invoice in full.

Additionally, after each repayment is made, the revolving credit line is automatically restored for further flexibility.  

AR Financing allows either notified or non-notified arrangements to suit different business requirements.

How does it work?

1. SME sends invoice to customer
2. SME applies for AR Financing line with Funding Societies and gets approved for amount 
3. SME submits to Funding Societies the first and all subsequent invoices for drawdown of funds up to approved credit limit
4. SME repays the funds previously drawndown from Funding Societies

Who is eligible?

For your business to qualify for our AR Financing line, it must be a registered business in Singapore with a minimum of 30% local shareholding and have operated for at least six months.

5. Supply Chain Financing 

What is it?

Supply Chain Financing funds the sale and purchase of goods by optimising the cash flow in the supply chain for both buyers and sellers who are small and medium enterprises. It enables the buyer to stagger payments according to their financial position, and allows suppliers to get paid earlier than commonly stipulated 60 to 90 days payment terms. This offers SMEs the flexibility to access funding in accordance with increased sales transactions instead of being limited to one specific amount.

This type of financing is often done through a financing partner. At Funding Societies, we will first pay the suppliers and then collect payment from the buyer on a later date. As such, the supplier gets an early payment to facilitate a smooth flow of materials to the buyer, and the buyer gets payment terms that suit its financial position.

In the supply chain industry, there are 2 types of Supply Chain Financing. The first is called Supplier Financing and the second is called Buyer Financing. Businesses usually use one or both of these Supply Chain Financing models to help them fund their inventory or assets.

How does it work?

Process for Supplier Financing

1. Supplier sells goods and sends the invoice to the Buyer.
2. SME (Supplier) then submit copies of the invoices to Funding Societies before the invoice due date.
3. Funding Societies will pay Supplier the invoice amount, minus financing fees, on behalf of the Buyer.
4. Buyer will then pay Funding Societies the invoice payable amount on the invoice due date.

Process for Buyer Financing

1. Supplier will deliver the goods and send invoice to the buyer
2. SME (Buyer) will send a payment request to Funding Societies
3. Funding Societies make full payment to the supplier on behalf of the Buyer
4. Funding Societies will collect payment from the SME (Buyer) on the financing due date.

Who is eligible?

Companies of any size can implement a supply chain financing programme as long as you have a pool of buyers or suppliers.

In general, we only require financial and supply chain transaction data from an Anchor to determine the relevant financing programme. We will also require KYC documents for the application.

6. Property-backed Secured Financing

What is it?

Property-backed secured financing from Funding Societies is a secured loan product that allows businesses to access working capital by using real estate assets as collateral. The property will typically be valued, and the financing will be provided up to 80% of the property value. With Funding Societies’ property-backed secured loans, SMEs can get a working capital loan of up to S$3 million. 

Who is eligible? 

Your SME or sole proprietorship must be a registered business in Singapore. On top of that, it must have a minimum of 30% local shareholding by a Singaporean Citizen or Permanent Resident Director.

Documents needed for your application:

• 2 years financial statements
• Latest 6 months bank statements
• Director(s) and Shareholder(s) NRIC or Passport, 2 year NOA and CBS report

Additional documents may be required. This is determined on a case by case basis.

7. Revolving Credit Financing

What is it?

Revolving credit financing from Funding Societies allows businesses a line of credit which they can draw upon when needed. Unlike traditional loans, which require a lump-sum repayment, the term “revolving” means that borrowers can draw down funds multiple times, up to an agreed limit, and then repay those funds over an extended period of time while having access to the same amount of funds again once they have repaid the loan. Borrowers also only pay interest on the amount that is drawn and not the total line of credit amount.

This allows SMEs greater flexibility over their cash flow needs without having to go through the process of applying for a loan each time they need more capital, or if they may not have the liquidity to make large payments on traditional loans. This makes it an ideal solution for businesses who require an ongoing source of funding in order to sustain their operations, and can help to improve credit scores.

The exact limit granted to each applicant is evaluated on a case by case basis.

Who is eligible? 

Leave your request on this form and our team will get in touch with you.

What can an SME use a micro loan for?

• Purchase supplies
• Employee payroll
• Increase inventory 
• Or simply to be ready for new opportunities!

Elevate – Funding Societies’ game-changing product!

What is it?

Elevate is a business expense solution containing a credit line, granted by FS Capital Pte. Ltd., and an add-on virtual card, powered by MatchMove, developed in partnership with MastercardⓇ. The Elevate credit line entitles qualified micro businesses and SMEs up to a credit limit of S$1 million and for an interest-free period of up to 55 days. 

The free add-on Elevate virtual card enables payment capabilities and can be used at any Mastercard accepting online merchants by keying in your unique 16-digit Elevate card number at checkout, or at physical stores by simply tapping your virtual Elevate card through the FS Business – Elevate Card mobile app on the merchant’s POS device contactlessly.

Furthermore, Elevate provides you with efficient expense management services so you never lose track of your budgets again. As the cardholder of the virtual card, you can set spending limits on both the main and supplementary cards, as well as track spending and monthly reconciliations from anywhere at any time on the mobile app. Elevate also allows you to set up recurring transactions in order to avoid overcharges from vendors. Finally, say goodbye to printing receipts with real-time alerts sent through the app on every swipe of your Elevate card! 

This powerful solution for business expenses comes timely for business owners who are looking for a convenient way to manage and spend your budget, and to improve cash flow all within one platform. 

Who is eligible?

• The SME must be a Limited Liability Partnerships (LLPs), Private Limited (Pte. Ltd.) or Sole Proprietorship. 
• The company must be owned by a Singaporean Citizen or Permanent Resident.

How to apply?

Step 1: Apply with Myinfo Business
Step 2: Get your application approved in as quick as 24 hours
Step 3: Activate your account via the FS Business – Elevate Card mobile app and start spending!

[For more information on Elevate, click here]

Ready to finance your SME to the next level? 

At Funding Societies, we understand that choosing the right financing option can be a daunting task. That is why we strive to make the process as easy and transparent as possible for you. From our online platform to our customer service team, we are here to help you every step of the way. 

Our products are designed to help you grow your business, manage cash flow, and expand operations. Whether you need short-term capital to finance an inventory purchase or long-term capital for expansion, we have the right product for you. We invite you to explore our range of products on our website and contact us if you have any questions or would like more information about how we can help your business succeed.

SME - Explore Now!

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Disclaimer: The information provided to you in this blog post is intended only for general information purposes only and does not constitute legal or other professional advice on any subject matter. The materials and the information provided are not intended to be and do not constitute an advertisement or solicitation. In no event will Funding Societies be liable to any party for any direct, indirect, incidental, special, consequential or punitive damages for use of such information by you or any unauthorised third party.

Elevate is not a credit card product. Elevate is a combination of a credit line facility offered by FS Capital Pte Ltd, with the convenience of quick and easy utilisation at any Mastercard accepted store or merchant via a virtual card separately powered by Mastercard and Matchmove. For more information, please refer to the Product Disclosure Sheet and Facility Terms and Conditions.