LINE OF CREDIT

Never get caught in an emergency

With a line of credit, you can be assured that you have sufficient cash flow to withstand short term liquidity shocks. Never be caught off guard with an order surge again.

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Pre-approved amount up to 3x
monthly cashflow

Approval applicable for a year

Pay interest and fees only when
you draw down

Rates as low as 1.5% per month
and 5% processing fee

Repayment tenor up to 1 year

Stretch out your repayment to a
year, no prepayment penalty.

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What is the difference between a Line of Credit and a Business Loan?

As the name suggest a line of credit is a facility that is made available to you within a period of time. This means that you have the option to tap on the facility as and when you may require. This is particularly useful when you are not able to ascertain a specific time and amount of funds required. The last thing you want is to sit on borrowed cash, paying interest while not making any use of the funds. A business loan on the other hand is drawndown straight after it is approved with the amount and tenor preset.

Drawdown Period

Amount

Tenor

Fees and Interest

Line of Credit

Within 1 year

Flexible within approved limits

Starts only when
utilised

Business Term Loan

Immediately on Acceptance

Fixed on acceptance

Immediately upon disbursement

When is a Line of Credit useful?

Loan disbursement is typically the same as a business term loan which is unsecured with a maximum loan amount of up to 3x of your monthly cashflow. The key difference is in the flexibility of timing in disbursement. Below are some of the most popular reasons why you should consider having a line of credit. It is also to note that a business term loan and a line of credit are not mutually exclusive, you can have a business term loan and a line of credit for additional cushion when required.

Sudden surge of orders

A cashline can provide the liquidity to help you fulfil short term spikes in order flows. The funds can help you hire new staff or purchase inventory.

Delay in payment from buyer

A delay in payment from your buyer can cause short term liquidity shocks. Having a cashline can give you additional buffer for your cashflow.

Equipment
Replacement

A sudden need for a large ticket purchase can eat into vital operating cashflow. A cashline can help provide comfort to liquidity when an emergency happens.

How does it work?

Quite simply, once you draw down on your line of credit, it operates entirely like a business term loan. You will be required to pay interest and principle on a monthly basis through an equal repayment schedule. Here are some of the key terms you should take note:

Amount

Tenor

Interest Rate

Processing Fee

Up to 3x monthly cashflow

Up to 12 months

1% - 3% per month

It is also important to note that while a credit line is pre-approved, there is no commitment from the lender to fully oblige to the drawdown when called upon. This means that there is a risk of the lender cancelling the line when required. Therefore, a line of credit should not be a replacement for a business term loan.

Business registration

Incorporated in Singapore (including LLP, Sole proprietorship)

Business ownership

At least 30% of the company owned by Singaporeans / PR

Credit of shareholders

No existing default records

Time in operations

At least 3 months of operating revenue

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Why get your property loan through Lendingpot?

Why get your your Line of Credit through Lendingpot?

A team that will support you

We have a dedicated team that will walk you through your entire loan process and help you do the market research you need.

We let lenders compete for your loan

Be ready to be spoilt for choice when we help you compare the best deals across all banks and non-banks so you only get the lowest interest rate and the highest cash out amount. Our rates are same as what the banks can offer or even better.

Save time in a single application

Compare across over 45 lenders in just 1 application.

Why get your your Line of Credit through Lendingpot?

A team that will support you

We have a dedicated team that will walk you through your entire loan process and help you do the market research you need.

We let lenders compete for your loan

Save time in a single application

Compare across over 45 lenders in just 1 application.

Apply Now

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FAQS

Is there a processing fee involved in taking on a line of credit?

How fast is an application for a line of credit?

How long is my credit line approved for?

What is the key difference between a line of credit and an unsecured business loan?

What is the maximum amount you can get on a line of credit?

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Still have doubts?
Let us help!

We’re happy to address any doubts you may still have. Let us know in the message box or simply book an appointment with us below.

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