7 Ways to Get a Startup Loan in Singapore (Even If You Have No Revenue Yet)

The Honest Truth About Getting a Loan for a Startup in Singapore

Let me be straight about something. A pure, unsecured bank loan to a company with zero revenue is rare, because lenders price risk on evidence, and a new startup offers little.

That does not mean funding is closed to you. It means the realistic early routes look different from a standard business loan.

Three broad sources of early capital exist, and most founders end up combining them:

• Debt, money you borrow and repay with interest, often made possible by government risk-sharing.
• Grants, money you do not repay, usually tied to specific milestones or co-funding.
• Equity, money in exchange for a share of your company, used when debt is not yet realistic.

If I had to name the single most important idea in this article, it’s that the Singapore government shares the lending risk with banks through the Enterprise Financing Scheme, which is what makes early-stage borrowing possible at all.

One point is routinely misread. Enterprise Singapore states plainly that the borrower remains responsible to repay 100 per cent of the loan amount. The risk-share sits between the government and the bank; it is not a discount on what you owe.

For very young companies, that risk-sharing is even more generous, which we will cover in detail. Understanding this one mechanism changes everything about how you approach lenders.

There’s a mindset shift here too, and I’d push you toward it. Instead of asking ‘who will give me a loan’, the better question is ‘what is the right mix of funding for my stage’. That mix usually starts with the least costly money and adds debt only when it makes sense.

It also pays to sequence correctly. Money you do not repay should come before money you do, and money tied to your personal name belongs last.

None of this, I want to stress, requires connections or luck. The schemes are published, rules-based, and open to any eligible founder who prepares well, which levels the playing field for newcomers.

Keep this framing in mind as you read on. Each of the seven routes below is one building block, not a complete answer, and the real skill is assembling the few that fit you into a single, coherent plan.

TLDR: What You Will Learn

• No revenue means no funding. Singapore has government-backed loans, matched grants, and alternative lenders built for early-stage founders.
• The government shares the risk. The Enterprise Financing Scheme lets banks lend to young firms by co-sharing up to 70 percent of the default risk.
• Grants come first. Startup SG Founder offers S$20,000 to S$50,000 in matched capital you do not repay, plus mentorship.
• Know the main loan. The SME Working Capital Loan offers up to S$500,000 over five years for eligible SMEs.
• Stack your sources. Combine grants, matched capital, and a small loan rather than chasing one large debt.
• Get loan-ready. Clean eligibility, a tight plan, and a specific use of funds beat the biggest possible ask.
• 7 Ways to Get a Startup Loan
  
  • The SME Working Capital Loan under the Enterprise Financing Scheme
  • The Startup SG Founder Grant for First-Time Founders
  • Venture Debt for High-Growth, Investor-Backed Startups
  • Alternative and Digital Lenders
  • Personal Financing Routes, Used Carefully
  • Equity When a Loan is Not Realistic Yet
  • Stack Grants and Support to Borrow Less

Before You Apply: How to Get Loan-Ready

Approval odds rise sharply when you prepare properly. Even with no revenue, you can present a venture that looks credible and fundable.

Preparation does two things: it improves your chances, and it helps you borrow only what you actually need, on terms you can repay.

I’d think of this stage as building your case. A lender or grant assessor is really asking one question: can this founder turn this money into a viable business? Everything you prepare should answer it.

What lenders and agencies actually assess

When revenue is absent, decision-makers look at everything else. You cannot conjure sales history overnight, but you can strengthen every other factor before you apply.

The most common factors are:

• The founder. Your background, commitment, and whether you are working on this full time.
• The business case. How clear, innovative, and scalable your idea is, and the size of the market.
• A realistic financial plan. Sensible projections, a clear use of funds, and a credible path to revenue.
• Eligibility basics. Local registration and shareholding, which many Singapore schemes require.
• Any security or guarantee. Collateral or a personal guarantee can unlock financing that would otherwise be declined.

Most government-assisted schemes share two eligibility threads worth memorising: the business must be registered and operating in Singapore, and it usually needs at least 30 percent local shareholding held by Singaporeans or permanent residents.

Knowing this early saves heartache. If your cap table does not meet the local shareholding threshold, you can plan around it before you apply, not after a rejection.

Where you have no revenue, credibility signals do heavy lifting. A working prototype, letters of intent, a waitlist, or a pilot customer can stand in for sales history and reassure a cautious assessor.

Get your paperwork and plan in order

Before approaching anyone, assemble a simple, honest pack. It signals that you are organised and serious.

A workable starter pack includes:

• Your ACRA business registration and basic company details.
• A short business plan covering the problem, your solution, the market, and the team.
• Financial projections for the next one to three years, with assumptions you can defend.
• A clear use-of-funds statement, showing exactly what the money will achieve.

If projections feel daunting, start by pressure-testing the business model itself. Our guide to building a sustainable business model works through the assumptions your numbers will rest on.

My advice: Keep the projections honest rather than heroic. Assessors have seen countless hockey-stick forecasts, and a conservative model you can defend builds far more trust than an optimistic one you cannot.

Strong founders also invest in their own capability. Financial literacy and planning sit among the core professional skills that make a venture more fundable and easier to run.

Finally, keep every version of your numbers. As you talk to lenders and mentors, you will refine the plan repeatedly, and showing that you respond to feedback is itself a positive signal.

Pro Tip

Match the ask to the milestone. Lenders and grant assessors respond well to a specific request tied to a specific outcome, such as “S$30,000 to build the MVP and reach our first ten paying customers”, rather than a vague “we need funding to grow”.

7 Ways to Get a Startup Loan in Singapore

Here are seven realistic routes to fund an early-stage startup, ordered roughly from the most accessible government-assisted options to alternative and equity routes.

Most founders will not use just one. The smartest approach is to stack two or three sources that together cover your first twelve to eighteen months.

As you read, match each route to your own situation: your stage, your shareholding, and how much risk you can carry personally. The comparison table later in this guide pulls it all together.

A useful rule of thumb: the earlier and riskier your stage, the more you should lean on grants and equity, and the closer you are to revenue, the more debt starts to make sense. The routes below roughly follow that arc.

1. The SME Working Capital Loan under the Enterprise Financing Scheme

This is what I’d call the workhorse of Singapore startup borrowing. The SME Working Capital Loan sits under the Enterprise Financing Scheme and funds day-to-day operational cash flow.

Eligible businesses can borrow up to S$500,000 per borrower, over a maximum repayment period of five years, through participating banks and financial institutions. Borrowers sit under an overall group limit of S$5 million for this facility.

The reason this matters for startups is the risk-sharing. Enterprise Singapore co-shares 50 per cent of the default risk with the lender, and that share rises to 70 per cent for young enterprises.

A young enterprise is defined as a firm formed within the past five years, with at least one employee and more than half its equity owned by individuals.

To qualify, you need an ACRA-registered entity operating in Singapore and at least 30 per cent local shareholding held directly or indirectly by Singaporeans or permanent residents, determined by ultimate individual ownership.

Two turnover tests also apply. Group annual sales turnover must not exceed S$500 million, and for this facility specifically, an SME is defined as having group revenue of up to S$100 million or a maximum employment size of 200 employees. Almost every early-stage startup clears both comfortably.

One honest caveat: the government shares the risk, but the bank still makes the credit decision, and you remain responsible for repaying the full amount. With no revenue, a personal guarantee is often part of the conversation.

You cannot apply to Enterprise Singapore directly. You approach one of the participating financial institutions, which then assesses your application under its own credit criteria and submits it through the Enterprise Singapore Incentive Management System (ESIMS).

Sixteen institutions currently participate in this facility, and they are not interchangeable:

• Local banks: DBS, OCBC and UOB.
• Foreign and regional banks: CIMB, HSBC, Maybank, RHB and Standard Chartered.
• Finance companies: Hong Leong Finance and Sing Investments & Finance.
• Specialist and digital lenders: ETHOZ Capital, FS Capital (related to Funding Societies), GB Helios, GXS Capital, IFS Capital and ORIX Leasing Singapore.

That last group is the one I’d flag. Specialist and digital lenders frequently engage with younger, thinner-file companies that a large bank will decline, while still carrying the same government risk-share.

A practical tip I’d give: Approach more than one participating lender, because each weighs risk differently, and a decline from one bank does not mean every bank will say no.

2. The Startup SG Founder Grant for First-Time Founders

If you have no revenue and it is your first venture, this is often the single best starting point. Startup SG Founder offers both startup capital and mentorship to first-time entrepreneurs with innovative ideas.

Since 1 April 2024, the programme provides a grant of 20,000 to 50,000 Singapore dollars on a one-to-one matching basis, meaning you put in capital and Enterprise Singapore matches it dollar for dollar.

It is technically a grant rather than a loan, which is the point. Matched capital you do not repay is far gentler on a pre-revenue business than debt with monthly instalments.

The grant is delivered through a network of Accredited Mentor Partners, who assess your idea, issue a Letter of Recommendation to Enterprise Singapore, and then mentor you through the twelve-month grant period.

Eligibility is tighter than most summaries suggest, and one requirement catches founders out. The main conditions are:

• A first-time founder leads the application. The first applicant must have no prior private limited company registered with ACRA, and must commit full time to the business.
• A second applicant is required. The second applicant does not need to be a first-time founder, which is deliberate: it lets an experienced operator join the team.
• Applicants must be Singapore Citizens or Permanent Residents.
• The company needs at least 51 per cent local shareholding. This is a higher bar than the 30 per cent threshold used by the Enterprise Financing Scheme, and the two are frequently confused.
• Co-matching capital must be committed. At least half of it must already sit as paid-up capital on ACRA Bizfile when the application reaches Enterprise Singapore.
• Entrepreneurship training is expected of the applicants.
• Some sectors are excluded, including food and beverage outlets, bars and nightclubs, massage and reflexology, gambling, employment and manpower agencies, and geomancy.

The mentorship is not a formality. For a founder with no track record, the guidance, network, and credibility that come with an Accredited Mentor Partner can matter as much as the cash.

Applications are made through an Accredited Mentor Partner, not directly to the government, so part of the work is convincing an AMP that your concept is innovative, feasible, and worth backing.

Because it is matched funding, you do need some capital to commit, but the matching effectively doubles your starting money, which is a powerful way to stretch a modest personal investment at the riskiest stage.

3. Venture Debt for High-Growth, Investor-Backed Startups

If your startup is innovative, scaling fast, and ideally already backed by investors, venture debt is worth knowing. It is one of seven loan types offered under the Enterprise Financing Scheme.

The facility was also broadened. Venture debt can now be backed by warrants or redeemable convertible preference shares, which allows more flexible repayment for early-stage and deep tech startups with irregular cash flow.

Venture debt lends against your growth potential and investor backing rather than profits or hard assets, which makes it suited to companies that are not yet profitable.

It is typically used to extend runway between equity rounds, letting founders raise less equity now and reduce dilution, while still funding growth.

The trade-off is real. Venture debt often carries warrants and covenants, and it adds repayment obligations, so it tends to suit venture-backed startups rather than a solo founder with only an idea.

In practice, venture debt is offered by specialist lenders and some banks, frequently alongside or just after an equity round. If you are not yet investor-backed, treat this as a route to grow into rather than a starting point.

Used well, it is a precision tool. The right time is when you have clear visibility on your next milestone and want to reach it without giving away more equity than necessary.

4. Alternative and Digital Lenders

Beyond the traditional banks, a growing set of licensed alternative and digital lenders serve smaller and younger businesses, sometimes with faster decisions and lighter requirements.

These lenders have grown quickly in Singapore’s fintech ecosystem, and for some founders, they are the first realistic source of business credit before a traditional bank will engage.

Some of these platforms are themselves participating financial institutions under the Enterprise Financing Scheme, which means you may still benefit from government risk-sharing through them.

Options in this space include marketplace and peer-to-peer business lending and revenue-based financing, where repayments flex with your future income once it starts.

Approach this route with care. Convenience can come with higher effective costs, so compare the total cost of borrowing rather than the headline rate, and verify the lender against the Ministry of Law Registry of Moneylenders or the MAS Financial Institutions Directory before you sign anything.

Alternative lenders shine when speed matters or when a bank has already said no. They are best used for specific, short-term needs with a clear repayment plan, rather than as long-term funding for an unproven model.

5. Personal Financing Routes, Used Carefully

When the company cannot borrow on its own, many founders bridge the very earliest stage with personal resources. It is common, but it carries real personal risk.

Typical personal routes include:

• A personal loan or personal line of credit, which depends on your own income and credit standing.
• Bootstrapping, funding the business from savings and early cash flow to retain full ownership.
• Friends and family, which is fast but should be documented properly to protect relationships.

The golden rule I’d hold you to: Never borrow personally what you cannot afford to lose, because a struggling startup can put your personal finances at risk.

Bootstrapping is underrated. Many Singapore founders begin by selling online and reinvesting early income, which builds the very revenue track record that later unlocks bigger loans.

If you do put personal money in, keep it formal and separate. Record it as a shareholder loan or paid-up capital, so your company accounts stay clean, and your future applications stay credible.

6. Equity When a Loan is Not Realistic Yet

Sometimes the honest answer is that debt is wrong for your stage. If you have no revenue and no assets, equity may be the more sensible route.

Early equity usually comes from angel investors and seed funds, who accept high risk in exchange for a share of a business they believe can grow rapidly.

Singapore also co-invests. Through Startup SG Equity, the government invests alongside qualifying private investors, with an independent third-party investor leading and pricing the round.

The scheme was significantly expanded at Budget 2026. It now covers growth-stage startups as well as early-stage, with S$1 billion set aside for deep tech investment across both.

Equity has no repayments, which protects cash flow, but it dilutes your ownership and brings investors into your decisions, so it is a strategic choice, not just a funding one.

Angels and seed funds typically back the team, the market size, and early signs of traction. Even without revenue, evidence such as a working product, a waitlist, or pilot users can make an equity story compelling.

Debt and equity are not mutually exclusive. A common pattern is to raise a little equity to become loan-worthy, then add government-assisted debt later, so the two work together across your journey.

7. Stack Grants and Support to Borrow Less

The cheapest loan, as I keep telling founders, is the one you never need. Before borrowing, reduce the amount required by tapping non-loan support.

Singapore offers a wide range of grants and support schemes, and while not all are loans, they directly reduce your funding gap, which is exactly the point when revenue is still some way off.

The Productivity Solutions Grant co-funds pre-approved digital tools and equipment, which can cover costs you might otherwise have borrowed for.

For larger capability-building projects, the Enterprise Development Grant supports efforts to upgrade, innovate, and expand your business.

One change is coming that affects all of this. Budget 2026 introduced EDGE, which streamlines the Market Readiness Assistance grant, the Productivity Solutions Grant and the Enterprise Development Grant into a single scheme, open to all Singapore businesses including non-SMEs.

In the meantime, the three grants continue to operate. Applications are still made through the Business Grants Portal, so nothing you plan today is wasted.

If you are unsure how these grants work in practice, our guides to the PSG grant and eligible equipment and the PSG grant for e-commerce solutions walk through the process step by step.

Incubators and accelerators add another layer, often bundling small grants, workspace, mentorship, and investor access, which together lower how much external debt you need to take on.

Think of grant stacking as shrinking the problem before you solve it. Every dollar of co-funded tooling or subsidised support is a dollar you do not have to borrow and repay with interest.

Which Option Fits Your Startup? A Quick Comparison

The right route depends on your stage, your shareholding, and your appetite for repayment or dilution. The table below is a starting map, not a verdict.

Many founders begin with grants and matched capital, then add a working capital loan once there is something to lend against.

Your shareholding structure is often the deciding factor. If you comfortably meet the local shareholding rules, the government-assisted routes open up; if you do not, equity and private financing move up your list.

Also weigh how each option affects control and cash flow. Debt keeps your ownership intact but demands repayments; equity protects cash flow but gives away a share, so the right answer depends on what you can least afford to give up.

Common Mistakes Founders Make When Seeking Startup Funding

I’ve watched good ideas get rejected, often for avoidable reasons. Watch for these recurring traps.

The encouraging news is that almost all of them are fixable before you apply, which means a little discipline now can be the difference between an approval and a polite no.

• Going straight to a bank with no revenue. Start with the schemes and grants designed for your stage instead.
• Ignoring eligibility basics. Missing the local shareholding or registration rules wastes everyone’s time.
• Borrowing more than the plan justifies. Over-borrowing creates repayment pressure before revenue arrives.
• A vague use of funds. Assessors fund specific milestones, not general ambitions.
• Comparing only headline interest rates. The total cost of borrowing, fees included, is what really matters.
• Mixing personal and business finances. It clouds your numbers and weakens future applications.

Notice the pattern. Most rejections come down to poor fit, weak preparation, or unclear numbers, all of which are within your control.

Treat a rejection as feedback, not a verdict. Ask why, fix the gap, and reapply or try a route better matched to your stage. Many funded founders were turned down at least once first.

What to do if your application is rejected

A decline is information, and it usually tells you which of three things went wrong.

• You failed an eligibility gate. Shareholding, incorporation age, or first-time founder status. These are binary and must be fixed before reapplying.
• The lender’s credit criteria did not meet your needs. Enterprise Singapore sets the scheme parameters, but each participating institution applies its own assessment. A decline from one is not a decline from all sixteen.
• Your case was not made well enough. Vague use of funds, unsupported projections, or an ask that did not match a milestone.

Watch Out

Beware unlicensed lenders. Desperation is dangerous. If you need to borrow, use a bank, a recognised financial institution, or a lender you have checked against the Ministry of Law Registry of Moneylenders, and never an unlicensed moneylender, however quick or easy the money looks.

A Realistic Example: Stacking Funding With No Revenue

To see how the routes combine, here is an illustrative example. It is a composite scenario for teaching purposes, not a specific company, and the figures are indicative.

The point is not the exact numbers but the shape of the approach, which you can adapt to your own venture, sector, and runway.

A Worked Example: Stacking Funding With No Revenue

Take Mei, a first-time founder in Singapore with a software idea, a working prototype, and no revenue. She needs roughly S$90,000 to reach her first paying customers.

Step one, she applies for Startup SG Founder through an Accredited Mentor Partner. She commits her own capital and secures a matched grant, giving her an early, repayment-free base and a mentor.

Step two, she uses the Productivity Solutions Grant to co-fund the digital tools her business needs, reducing the cash she has to find elsewhere.

Step three, once her company qualifies as a young enterprise, she approaches a participating institution for an SME Working Capital Loan, where Enterprise Singapore’s 70 per cent risk-share for young firms helps the lender say yes to a modest amount.

The result is a blended funding stack: a matched grant she keeps, a grant-subsidised toolset, and a small, manageable loan, rather than one large debt she cannot service.

The lesson generalises. With no revenue, the winning move is rarely one big loan; it is combining smaller, stage-appropriate sources into a runway that gets you to revenue.

It also lowers risk. If one source falls through, a diversified funding stack means the whole plan does not collapse, which is reassuring for both you and any lender assessing you.

Case Example

Why this works: each source matches the stage. The matched grant and PSG carry the pre-revenue phase without repayments, and the loan only enters once the company qualifies as a young enterprise and has a clearer use of funds. Illustrative scenario for learning; verify all current scheme terms before applying.

How to Get Started in Five Steps

You don’t need every answer today. What I’d say you need is a first move and a sensible sequence.

The order below is deliberate. It front-loads the free and matched money, confirms your eligibility early, and leaves repayable debt until you have the clearest possible use for it.

1. Register and check eligibility. Incorporate with ACRA and confirm you meet the local shareholding rules for the schemes you want. Remember the two thresholds differ: 30 per cent for the Enterprise Financing Scheme, 51 per cent for Startup SG Founder.
2. Write a tight plan and projections. Spell out the problem, the market, the team, and a clear use of funds.
3. Start with grants and matched capital. Approach an Accredited Mentor Partner for Startup SG Founder, and apply for other grants through the Business Grants Portal, before taking on debt.
4. Approach the right lender. For a loan, speak to participating financial institutions about the SME Working Capital Loan and the young-enterprise risk-share.
5. Borrow lean and track repayment. Take only what your plan justifies, and monitor cash flow so repayments never outrun revenue.

If you are still shaping the business itself, our guides to launching a startup in Singapore without burning through your savings and what separates a business from a dream pair well with the funding steps above.

Keep momentum after step five. Revisit your plan as you learn, and return to the funding mix as your business matures, because options that are closed to you today often open once you have revenue and a track record.

Funding is a means, not the goal. Pair it with a plan to win customers, such as these proven small-business growth strategies, so the money you raise actually turns into traction.

Conclusion

Having no revenue yet is a starting condition, not a permanent one. Singapore’s ecosystem is built to support founders at exactly this stage.

The route to a startup loan in Singapore rarely runs straight from an idea to a bank. It runs through matched grants, government risk-sharing, and a stack you assemble deliberately.

The key shift, and the one I most want you to take away, is to stop thinking like a bank applicant and start thinking like a founder assembling a funding stack.

That shift is empowering, because it puts you back in control. You are no longer waiting for a single yes; you are building a plan from several complementary sources that you actively choose.

Lead with grants and matched capital such as Startup SG Founder, which give you fuel without repayment pressure.

Then layer in government-assisted debt like the SME Working Capital Loan, where the young-enterprise risk-share helps a bank lend to a company it otherwise might not.

Use venture debt, alternative lenders, equity, and grant stacking where each one genuinely fits your stage, and not before.

Above all, get loan-ready. A clear plan, clean eligibility, and a specific use of funds will do more for your chances than chasing the largest possible loan.

Remember the one caveat throughout: schemes and figures change, so confirm the current terms with the relevant agency or lender before you commit.

Funding is a beginning, not a finish line. The goal is to raise just enough, on the right terms, to reach your next milestone, and then let real revenue open bigger doors.

So start where you are. Pick the one route that best fits your stage today, prepare properly, and take the first step, because the founders who get funded are simply the ones who begin, prepare well, and keep going until the right yes arrives.

Your next step: learn to raise capital with confidence

Knowing the options is the first step. Knowing how to choose between them, model the numbers, and negotiate well is the skill that turns funding from a scramble into a strategy.

Equinet Academy’s Venture Capital and Strategic Fundraising Decisions course teaches founders to evaluate capital instruments across stages, from grants and loans to convertible notes, venture debt, and equity, and to build the financial models that make a startup fundable.

It suits founders and SME owners who are moving toward an institutional raise and want to weigh debt against equity with the numbers in front of them. The course assumes foundational financial literacy, so if you are still building that, start with Finance for Non-Finance Managers, which is the recommended prerequisite.

You will leave able to read a term sheet, model your runway, and walk into a funding conversation as an informed counterparty rather than a hopeful applicant, whichever route you ultimately choose.

If you are ready to fund your startup on your own terms, enrol in Equinet Academy’s Venture Capital and Strategic Fundraising Decisions course and approach your next funding conversation as an informed founder.