Most SME owners search “eligibility” hoping for a simple yes or no. In practice, lenders are trying to answer two questions: can the business repay, and how uncertain is the repayment? The checklist is just how they measure it.
1) Operating track record
Time in business matters, but it is not the only factor. If you are newer, lenders tend to look more closely at:
- Stability of sales and repeat customers
- Confirmed contracts and pipeline
- How disciplined the business is with collections and payments
2) Revenue quality (not just revenue size)
High revenue with unpredictable collections can be riskier than moderate revenue with consistent deposits. Lenders often assess:
- Consistency of monthly inflows
- Customer concentration (one customer dominating revenue)
- Seasonality and whether the business plans for it
- Returns, reversals, and unusual adjustments
3) Bank statement behaviour
For many SME facilities, operating bank statements are a key source of truth. Common red flags include:
- Frequent negative balances
- Missed or bounced payments
- Heavy reliance on last-minute injections
- Large unexplained transfers
Helpful signals include clean deposits, predictable expense rhythms, and a stable trend in average balances.
4) Existing debt and repayment load
Eligibility is not only “can you borrow” but “can you borrow safely.” Lenders may review:
- Current facilities and outstanding balances
- Monthly debt servicing obligations
- Whether a new loan improves or worsens cash flow pressure
5) Purpose and repayment source
Strong applications clearly explain:
- Why financing is needed
- Where repayment comes from (collections, contracts, recurring revenue)
- What changes with the facility (stability, execution speed, growth)
How to strengthen your application before you apply
Simple improvements can make a big difference:
- Prepare clean management accounts (even if unaudited)
- Write a short purpose note in plain language
- Explain anomalies in bank statements upfront
- Avoid overreaching on loan size; plan for a slower month
A concrete eligibility benchmark
While every lender has different criteria, here is a typical baseline for unsecured working capital loans from alternative lenders in Singapore:
Business requirements:
- Legal structure: Singapore-incorporated Pte Ltd or LLP
- Operating history: Minimum 6 months in business
- Revenue: At least $250,000 annual revenue
- Shareholding: Minimum 30% local (Singapore) shareholding
Documentation typically required:
- ACRA BizFile profile (within 30 days)
- 6 months bank statements (original PDF from bank portal)
- Latest 2 years financial statements
- Directors' latest Notice of Assessment
- CBS credit reports for guarantors
What might disqualify an application:
- Less than 6 months operating history
- Revenue below lender minimums
- 100% foreign ownership (most alternative lenders require some local shareholding)
- Significant defaults or legal issues on credit reports
- Negative equity or sustained losses without clear recovery plan
The speed advantage of alternative lenders is significant when you meet eligibility criteria clearly. Credezo, for example, provides credit decisions within 48 hours of receiving complete documentation, with funding in 3-5 business days. If you are unsure whether you qualify, many lenders offer pre-qualification conversations at no cost—a quick way to check before committing time to a full application.
Key takeaway
Eligibility is less about a perfect checklist and more about reducing uncertainty. When your cash story is clear and you meet baseline requirements, approvals tend to move faster.
Want a quick, realistic read on eligibility based on your cash flow? Apply for financing and share your basics—we will take it from there.