Key takeaways
- SMEs are 99% of enterprises in Singapore, and account for about 69% of employment and 46% of nominal value added (2025 figures). [28]
- Business money comes from several places: owners' own funds, banks and finance companies, licensed moneylenders, other non-bank lenders, leasing and hire purchase, government-supported loans, grants and equity.
- Four groups shape SME financing: lenders (the supply side), SMEs (the buy side), intermediaries such as brokers and consultants, and the wider ecosystem of public agencies and industry bodies around them.
- Start from what the money is for. That points to a type of financing. Then check who you are dealing with and compare the full cost.
Key facts
- According to the Singapore Department of Statistics, SMEs made up 99% of enterprises in Singapore in 2025 (369,500 of 371,000). [28][42]
- Department of Statistics figures for 2025 show SMEs accounted for about 69% of employment and 46% of nominal value added in Singapore. [28][42]
- From 30 September 2026, EnterpriseSG business grant support is applied for under the EDGE Grant, which replaced the EDG, MRA and PSG schemes. [34][35]
Key terms
- SME (small and medium-sized enterprise)
- The Singapore Department of Statistics defines SMEs as enterprises with operating revenue of not more than S$100 million, or employment of not more than 200 workers. Schemes and lenders can set their own tests. [28][2] In the glossary
- Non-bank financial institution (NBFI)
- A general term for lenders that are not banks, such as finance companies, licensed moneylenders and other non-bank lenders. It is not a licence type in itself. [15][30] In the glossary
- Digital bank
- A bank that serves customers digitally. MAS has issued two digital full bank and two digital wholesale bank licences, with the same scope and requirements as other full and wholesale banks; a digital wholesale bank may serve SMEs. [46] In the glossary
- Intermediary (loan broker or financing consultant)
- A firm or person that helps a business compare lenders, prepare documents or apply for financing, but does not lend. The lender still decides whether to lend. [2] In the glossary
- Enterprise Financing Scheme (EFS)
- An Enterprise Singapore scheme that helps Singapore businesses get financing by sharing the risk of default with participating financial institutions. The lender makes the loan, and the borrower repays 100%. [1][2] In the glossary
- Effective interest rate (EIR)
- The true cost of a loan expressed as an annual rate, taking into account how you repay over time. It lets you compare loans quoted in different ways. [10] In the glossary
- EDGE Grant
- EnterpriseSG's business grant from 30 September 2026, replacing the EDG, MRA and PSG schemes. It is paid on a reimbursement basis, after the activity is completed and fully paid for. [34][35] In the glossary
- Licensed moneylender
- A non-bank lender licensed to lend to the public. The Registry of Moneylenders publishes the list of licensed moneylenders. [15] In the glossary
Who are the key players in SME financing in Singapore?
SME financing in Singapore involves four groups: lenders on the supply side, SMEs on the buy side, intermediaries such as brokers and consultants who sit between them, and a wider ecosystem of public agencies and industry bodies around them. Many businesses deal with lenders directly, so an intermediary is optional.
Supply side
Lenders
- Banks and digital banks
- NBFIs, such as finance companies and licensed moneylenders
- Fintech lenders and crowdfunding platforms
- Business lending companies
Intermediaries (optional)
Brokers and consultants
- Help compare lenders and apply
- Not lenders
- Ask how they are paid
Buy side
SMEs
- Mainly micro and small businesses
- Registered in Singapore
- All industries
Direct route: many businesses apply to lenders directly, without an intermediary.
- EnterpriseSG enterprise support
- MAS central bank
- MinLaw Registry of Moneylenders
- ABS and CBS banks' association and credit bureau
1. Supply side: the lenders
Lenders on the supply side include banks (digital banks among them) and non-bank financial institutions (NBFIs) such as finance companies and licensed moneylenders. [29][30][46][15] They also include fintech lenders, crowdfunding platforms and business lending companies: privately owned companies that lend to businesses from their own funds. Each type works a little differently, and loan sizes, pricing and terms vary from lender to lender, so compare the effective interest rate (EIR) and all fees. [10] Our Lender types guide explains each category and how to check who you are dealing with.
2. Buy side: SMEs
The buy side is the businesses that borrow. The Department of Statistics counts as an SME any enterprise with operating revenue of up to S$100 million or up to 200 workers. [28] Riverell focuses mainly on micro and small businesses registered in Singapore, across all industries, but most of what we write applies to SMEs generally. Schemes and lenders set their own tests: the EFS SME Working Capital Loan, for example, also asks for at least 30% local shareholding. [2] See what counts as an SME below, and preparing to apply for what lenders usually ask for.
3. Intermediaries: brokers and consultants
Some businesses use a loan broker or financing consultant to compare lenders, prepare documents or submit applications. Intermediaries usually charge for this, and how they are paid varies, so ask who pays them, how much and when, and get it in writing. You do not need one to apply: you can approach a bank directly, and for EFS loans you apply yourself through EnterpriseSG's ESIMS portal. [21][41] Never pay a fee as a condition of receiving a loan. [11][12] See how intermediaries work and the red flags to watch for.
4. Ecosystem stakeholders
Around these groups are public agencies and industry bodies that support businesses and the financing system. In brief:
- Enterprise Singapore (EnterpriseSG): the government agency for enterprise development. It shares part of the lender's risk on EFS loans, but does not lend itself. [48][1][2]
- Monetary Authority of Singapore (MAS): Singapore's central bank. [47]
- Ministry of Law (MinLaw): home of the Registry of Moneylenders. [54]
- ABS and CBS: the Association of Banks in Singapore, the banks' industry body, and Credit Bureau (Singapore), the credit bureau it helped set up. [49][50]
What counts as an SME in Singapore?
The Singapore Department of Statistics defines SMEs as enterprises with operating revenue of not more than S$100 million, or employment of not more than 200 workers. [28]
Government schemes can set their own tests. For the EFS SME Working Capital and SME Fixed Assets loans, for example, an SME means group revenue of up to S$100 million or up to 200 employees. Other conditions also apply, such as at least 30% local shareholding. [2][4] Grants and lenders have their own criteria too. When a page says "SME", check whose definition it is using.
SMEs in numbers
| Measure, 2025 | SMEs | All enterprises | SME share |
|---|---|---|---|
| Number of enterprises | 369,500 | 371,000 | 99% |
| Employment | 2.49 million | 3.6 million | 69% |
| Nominal value added | S$327.8 billion | S$714.7 billion | 46% |
Source: Department of Statistics annual series, last updated 30 Mar 2026. [28][42] This employment figure excludes migrant domestic workers, own-account workers and contributing family workers. [28]
Almost every business in Singapore is an SME, and SMEs employ about two in three of the workers counted here. That helps explain why there are so many financing routes aimed at SMEs, and why the choice can feel confusing.
Where does SME financing come from?
Most businesses use more than one source over their lifetime. The main sources are:
| Source | What it is | Worth knowing |
|---|---|---|
| Own funds | Owners' savings, retained profits, money from family or partners | No lender is involved, but mixing personal and business money makes your records harder to read |
| Banks, including digital banks | Term loans, overdrafts, trade and invoice financing, loans for assets and premises | Digital banks are full or wholesale banks, like other banks [29][46] |
| Finance companies | A small group of non-bank lenders, separate from banks | 3 listed in the MAS directory on 25 Oct 2026 [30][16] |
| Licensed moneylenders | Non-bank lenders licensed to lend to the public | Caps on interest and fees apply [14] |
| Other non-bank lenders | Includes some invoice-financing and fintech lenders, business lending companies and lending-based crowdfunding platforms | Each works differently. See our Lender types guide [31][32] |
| Leasing and hire purchase | Paying for equipment or vehicles over time | The Hire-Purchase Act's main protections cover consumer goods up to $20,000 (incl. GST) and motor vehicles up to $55,000 (excl. COE), so most business equipment hire purchase falls outside them. Read the contract closely [37][38] LEGAL REVIEW |
| Government-supported loans | EFS loans made by participating lenders, with EnterpriseSG sharing part of the risk | You borrow from the lender and repay 100% [1][2] |
| Grants | Co-funding for specific projects, such as the EDGE Grant | Paid as a reimbursement after the work is done and paid for [34] |
| Equity | Investors buy a share of the business | Not repaid like a loan, but you give up part of the ownership |
How do I check who I am dealing with?
Banks and finance companies are listed in the MAS Financial Institutions Directory, and licensed moneylenders on the Registry of Moneylenders' public list. [15][16] Some business lenders lawfully appear on neither list, for example lenders that lend only to companies. [32] LEGAL REVIEW So ask any lender what type of lender it is, and check the answer. Our Lender types guide shows where to look.
The main types of financing
| Type | What it pays for | Typical shape | Riverell guide |
|---|---|---|---|
| Working capital | Wages, rent, suppliers, day-to-day gaps | Term loans, revolving credit, overdrafts | Working capital |
| Trade and invoice | Stock, and invoices customers have not paid yet | Short-term, tied to specific trades or invoices | Invoice financing |
| Asset and equipment | Machines, vehicles, equipment | Loans, leasing or hire purchase | Coming soon |
| Property | Buying or building business premises, or raising money against property you own | Longer-term and secured on the property; the EFS Fixed Assets loan runs up to 15 years [4] | Secured financing (overview; full guide coming soon) |
| M&A and project | Buying a business, or funding a secured contract or project | Linked to the deal or contract | EFS loan types |
These match the loan types under EnterpriseSG's Enterprise Financing Scheme, which covers working capital, trade, fixed assets, projects, venture debt, M&A and green activities. [1]
Another way to sort them is by what backs the loan: unsecured (no property or other asset pledged) or secured (backed by an asset such as property). See types of business financing: unsecured vs secured.
Grants, loans or equity: what's the difference?
A loan has to be repaid, with interest, whether or not the business does well. That includes government-supported EFS loans: the borrower repays 100%. [2]
A grant co-funds a specific project, with conditions. From 30 September 2026, EnterpriseSG business grant support is applied for under the EDGE Grant. It replaced the EDG, MRA and PSG schemes, which ceased on 29 September 2026. [34][35] EDGE support is paid on a reimbursement basis: you claim once the activity is completed and fully paid for. [34] So a grant does not give you cash upfront, and you may need your own funds or financing to cover the cost first. On its EDG page, EnterpriseSG states that "there are no compulsory application fees required for schemes offered by EnterpriseSG", and that application fees quoted by grant application service providers "are not endorsed by the Government". [35]
Equity means selling part of the business to investors. You do not repay it like a loan, but you share ownership and future profits. Government equity support is narrow. Startup SG Equity, run by EnterpriseSG and EDB, invests through appointed fund managers in Singapore-based deep tech startups, including by co-investing alongside independent third-party investors. [36] It is not aimed at most SMEs.
How to choose where to start
- Name the need. Day-to-day costs, unpaid invoices, stock, an asset, premises, a project or growth. This points to the type of financing.
- Ask whether it should be a loan at all. A grant may co-fund some projects, and equity may suit a long-term bet better than debt.
- Check whether government support could apply. EFS loans are made through participating lenders, which still decide whether to lend. [2]
- Shortlist by lender type, and check who you are dealing with (see how to check). [15][16]
- Compare the full cost using the effective interest rate (EIR) and all fees, not the headline rate. [10]
- Prepare before you apply, and walk away from anyone who asks for a fee before the loan is released. [11][12]
How Riverell's guides fit together
| Group | Guides | Read it when |
|---|---|---|
| 1. Start here | This guide, Types of business lenders, Unsecured vs secured financing | You want the overall map first |
| 2. Unsecured financing | Working capital, Invoice financing | You need money without pledging property |
| 3. Secured financing | Property-backed financing and equipment leasing (coming soon) | You are buying premises or an asset, or borrowing against one |
| 4. Government-supported schemes | The EFS, explained | You want to know if a loan could be government-supported |
| 5. Costs and preparing | Flat rate vs EIR, Preparing to apply, and red flags | You are comparing offers or about to apply |
What to check before you agree
- Whose SME definition does this scheme or lender use? [2][28]
- Is this a loan, a grant or equity, and what do I owe if things go badly?
- Who is the lender, and what type of lender is it? [15][16]
- Is the loan under a government scheme? If so, which one? [1]
- Have I compared the EIR and total fees of at least two offers? [10]
- Has anyone asked for a fee before a loan or grant is approved? Stop if so. [11][35]
Frequently asked questions
What is SME financing?
SME financing is the money a small or medium-sized business raises to run and grow, from its owners' own funds, loans from banks, finance companies and licensed moneylenders, government-supported loans, grants and equity. In Singapore, EnterpriseSG's Enterprise Financing Scheme shares part of the lender's risk on some business loans.
Who are the key players in SME financing in Singapore?
There are four groups. On the supply side are lenders: banks, including digital banks, non-bank financial institutions such as finance companies and licensed moneylenders, fintech lenders, crowdfunding platforms and business lending companies. On the buy side are SMEs. Between them, some businesses use intermediaries such as loan brokers and financing consultants. Around them is a wider ecosystem of public agencies and industry bodies, such as EnterpriseSG, MAS, the Ministry of Law, the Association of Banks in Singapore and the credit bureau CBS.
Do I need a broker or consultant to get a business loan in Singapore?
No. You can approach a bank directly, and for EFS loans you apply yourself through EnterpriseSG's ESIMS portal to the participating lenders you choose. If you do use a broker or consultant, ask who pays them, how much and when, and never pay a fee as a condition of receiving a loan.
What counts as an SME in Singapore?
The Singapore Department of Statistics defines SMEs as enterprises with operating revenue of not more than S$100 million, or employment of not more than 200 workers. Government schemes and lenders can set their own tests, so check whose definition a page is using.
Is an SME grant the same as an SME loan?
No. A loan has to be repaid with interest, including a government-supported EFS loan, where the borrower repays 100%. A grant co-funds a specific project with conditions. From 30 September 2026, EnterpriseSG business grant support is applied for under the EDGE Grant, which is paid as a reimbursement after the work is done and paid for.
Disclaimer. This guide gives general information only. It is not financial, legal or tax advice, and it is not a recommendation of any product or provider. Riverell is not a lender and does not arrange loans. Figures and scheme details were checked against the sources listed on 25 Oct 2026 and can change. Always confirm terms directly with the provider, and get independent professional advice if you are unsure. LEGAL REVIEW
Sources
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