Types of business lenders in Singapore, explained.

Why lender type matters

Different types of lender offer different products and work in different ways. Knowing a lender's type helps you compare offers and check who you are dealing with. This guide describes types of lender in general terms. It does not name or rank lenders.

In this guide, "non-bank financial institution" (NBFI) is 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.

Banks and merchant banks

Banks and merchant banks are licensed under the Banking Act, and the MAS Financial Institutions Directory groups them into categories such as local banks, full banks, wholesale banks and merchant banks. ^[29][16] Banks' SME products include term loans, working capital loans and invoice financing. ^[22][25][27] Government-supported EFS loans are also made through participating banks and other financiers. ^[2]

What is a digital bank in Singapore?

A digital bank in Singapore is a bank that serves customers digitally. MAS has issued four digital bank licences, two to digital full banks and two to digital wholesale banks, with the same scope and requirements as other full and wholesale banks. A digital wholesale bank may take deposits from, and provide banking services to, SMEs and other non-retail customers. ^[46] Like other banks, digital banks appear in the MAS Financial Institutions Directory. ^[16]

Finance companies

Finance companies are non-bank lenders licensed under the Finance Companies Act. ^[30] It is a small group: on 25 Oct 2026, the MAS directory listed 3 finance companies. ^[16] Check the directory for the current names.

Licensed moneylenders

Licensed moneylenders appear on the Registry of Moneylenders' public list. ^[15] The Registry's borrower FAQs set out rules that include: ^[14] LEGAL REVIEW

• Interest is capped at 4% a month, whatever the borrower's income and whether or not the loan is secured.
• Late interest is capped at 4% a month, and only on the amount that is late.
• Fees are limited to an upfront fee of up to 10% of the principal, up to S$60 for each month of late repayment, and court-ordered legal costs.
• Total charges cannot exceed the amount of the original loan.
• Licensed moneylenders may advertise only in directories, on their own websites and at their premises. Loan offers by SMS, flyer or unsolicited message come from either an unlicensed lender or one breaking the rules.

The cooling-off period for loans disbursed from 15 September 2026 does not apply to business loans. ^[14]

Exempt and excluded moneylenders

Under the Moneylenders Act, a business may lend money only if it is licensed, exempt or excluded. ^[33] Exempt moneylenders have a limited scope, and the Registry publishes a list of them. ^[14][33] Excluded lenders include, for example, lenders that lend only to companies, LLPs or business trusts, and businesses whose main object is not lending. ^[32] There is no public list of excluded lenders, so if a lender says it is excluded, ask which exclusion it relies on. A lender that relies on the company-only exclusion may not be able to lend to a sole proprietor or a partnership. LEGAL REVIEW

What are business lending companies?

Business lending companies, sometimes described as private lenders, are privately owned companies, other than banks and finance companies, that lend to businesses from their own funds. Some are licensed moneylenders and appear on the Registry's list. Others lend only to companies and LLPs, under an exclusion in the Moneylenders Act. ^[15][32] LEGAL REVIEW

As with any lender, loan sizes, pricing and terms vary from one to the next, so compare the effective interest rate (EIR) and every fee before you sign. Our flat rate vs EIR guide shows how. ^[10]

What is a fintech lender?

"Fintech lender" describes how a lender works, not a type of licence. A lender that uses technology to lend online may be a bank or digital bank, a finance company, a licensed moneylender, a business lending company or a crowdfunding platform. ^[16][31] LEGAL REVIEW Ask which one you are dealing with; the table at the end of this guide shows where to check.

Crowdfunding and online platforms

In lending-based crowdfunding, a platform arranges for many investors to fund a loan to a business. Depending on how it is set up, the operator may need an MAS capital markets services licence. ^[31] LEGAL REVIEW

"Platform" can mean different things. Some platforms lend their own money, some arrange funding from investors, and some only introduce you to lenders. Ask which one you are dealing with, and who the actual lender is. Some non-bank lenders and platforms offer invoice financing; our invoice financing guide explains how it works.

Leasing and hire purchase providers

Equipment and vehicles are often paid for over time through leasing or hire purchase. Hire purchase agreements are governed by the Hire-Purchase Act 1969. Its main protections cover "regulated agreements": consumer goods worth up to $20,000 (including GST) and motor vehicles worth up to $55,000 (excluding COE). Most business equipment hire purchase falls outside these protections, so read the contract terms closely. ^[37][38] LEGAL REVIEW Our guide to leasing and hire purchase is coming soon.

What do loan brokers and consultants do?

Loan brokers and financing consultants are intermediaries. They are not lenders: they help a business compare lenders, prepare documents or submit applications, and the lender still decides whether to lend. ^[2] LEGAL REVIEW Intermediaries usually charge for this, often as a fee from the business or a payment linked to the loan, and arrangements vary. Before you agree, ask:

• who pays them, how much, and when;
• whether they are paid by any lender they introduce;
• which lenders they work with, and whether they will tell you each lender's name before you apply.

You do not need an intermediary to apply. You can approach a bank directly, and for EFS loans you apply yourself through EnterpriseSG's ESIMS portal to the participating lenders you choose. ^[21][41] For grants, EnterpriseSG has said there are no compulsory application fees for its schemes, and that fees quoted by grant application service providers are not endorsed by the Government. ^[35]

Whoever you deal with, the red flags still apply:

• Upfront fees. Never pay money as a condition of receiving a loan. Licensed moneylenders will not ask you to pay "processing fees" before a loan is released. ^[11][12][13]
• Promises of approval. Only the lender decides whether to lend, so treat any promise of guaranteed approval with caution. ^[2]
• Unsolicited offers. ScamShield says any unsolicited loan offer is a scam, and licensed moneylenders may not solicit loans by SMS, calls or social media. ^[11][12]
• Requests for logins. Never share your Singpass, OTPs or banking credentials with anyone. ^[13]

LEGAL REVIEW

The government is not the lender

Under the Enterprise Financing Scheme, EnterpriseSG does not lend money itself. Participating lenders make the loans and decide whether to lend. EnterpriseSG shares part of the risk. ^[2]

How do I check if a lender is licensed?

Whatever they say, you can buy ACRA's business information to confirm that the company exists and see its registered details. ^[17]