No one likes to be compared and probably will not be making it easy for you to do so. FindTheLoan.com is here to change that. When using us, you will notice on your dashboard all their offers are in the same terms or jargon so that it is easy for you to compare apple to apple.

And when it comes to comparing loans, there is more than just going for the cheapest interest rate you see.  In this article, we dive into many of the other factors that you may want to take into consideration, which will be clearly indicated on your dashboard. This article is to equip you with a broad loan knowledge, especially for more complex loan products such as business or mortgage loans. If you are going for personal loans or just want want a short version of this, please click here. 

Fees

Take for example, 2 loans both with a quantum of $10,000 and 1 year in tenure, with the 1st loan at 11% p.a per year without any fees, while the 2nd has a lower interest of 10% p.a, but with an additional of one-time processing fee of $1,000 and 1% annual fee. The total fees of $1,000 and $100 make it slightly more expensive than the 1st, despite a lower interest rate - with an Effective Interest Rate (EIR) of 21% as you will pay a total of $2,100 in interest and fees.

There are times a lender may split the fees just to make it harder for you to compare. For one-time fees, they usually call it processing, faculty, set up or admin fee and for usage, they use terms like drawdown, usage, and advance fee. This is the reason that you will notice that our articles are written, as much as possible, with as many of the other names of the same loan type and terms that might be used, through our careful research (take for example there are 5 different names for gear up loan in another of our article under our Glossary page). In fact, it has become such a nightmare that at times even an experienced relationship manager joining another bank or lender might become confused.

Interest calculation method

Flat, compounding or reducing interest can drastically change how much interest you are actually paying especially for a loan with a long period. For example, a $100,000 (P) loan at 3% p.a (I) with just a 5 years (n) tenure calculated using the 3 methods can cause you to pay more than double the interest amount if not careful:

On your dashboard, we will convert any reducing interest to flat so that it is easier for you to compare apple to apple. Simple interest is used on your dashboard instead of reducing as most banks and lenders communicate in simple interest plus it is also easier to calculate the total interest, even though it may appear more expensive. However, please note on the actual term sheet/loan agreement, if they are used to communicating in reducing interest instead, they may revert to that. Your total interest should remain the same as it is simply their preferred method of communicating interest rates internally or externally or if required by law. You can also double-check the amounts again by using our calculator.

Block period

Take for example a 45 days loan; a lender may calculate it as 45 days, 7 weeks or 2 months. A $100,000 invoice financing at 3% per month interest will work out to be $4,500 for one with interest calculated daily or $6,000 for another calculating it as 2 months - 33% more for the 2nd even though both on paper state the same 3% per month. For short term loans that are measured by days than months or years, this is another way lenders make it hard for you to compare apple to apple.

Repayment term and lock-in period

For example, if you expect cashflow to be tight over the next few months but expect completion of a large order or a sale of a property later which will allow you to easily repay your loan, an interest servicing repayment means you only have to service your interest monthly, making your initial monthly repayment much more affordable. However, if you have a long lock-in period when your cash flow is freed up, you will pay an early repayment fee to discontinue the loan. (To find out more on the various repayment term types, please refer to another article of ours.) If you are getting a property loan, having a long lock-in period may mean if you believe the interest rate will be trending downward, you might not be able to take advantage of that and refinance your loan to a new lender without paying a penalty.

Some lenders make it hard for you to compare the early repayment fee between loans by having a 2-tier early repayment fee calling the 1st one, for example, the more familiar “Early Repayment Fee payable within 6 months at 10% of principal sum “ which you will then tend to focus on – and may overlook later on the page, for example, a, “Early Redemption Fee payable after 6 months but within 2 years at  5%”

As most lenders only have a single lock-in period, for simplicity your dashboard’s lock-in refers to the final period free of any penalty whereas secondary ones, they would state in under the terms and condition column

Tenure

Naturally, the duration of the loan is another important factor. The same quantum divided over a long period means smaller monthly instalments and easier for the business to cope with, with the trade-off being more interest paid. Note for overdrafts and for loans such as Merchant Cash Advance, where there may not be a fixed tenure especially if it is on a revenue-based repayment model - the Financing Partner may not enter a tenure.

In summary

The above factors will be clearly indicated on your dashboard, using the same jargon and product names, regardless of what a lender calls them, allowing you to easily compare and Find The most suitable Loan for you. You can also consider using our loan comparison calculator, to compare 2 loans, side-by-side. Check out our glossary if you would like to go into greater detail for any of the terms above.

To get started, sign up/apply here.

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The Enterprise Financing Scheme (EFS) is a series of schemes, not a specific loan type. For example, the SME Fixed Asset scheme supports three types of loans: hire purchase, construction loan, and property/land loan. Meanwhile, the Project Loan scheme also covers construction loans but is intended specifically for construction enterprises. For the most updated details, please refer directly to Enterprise Singapore's official website.

We have included EFS as a "loan type" on our platform because many users were searching for it and found it strange not to be able to locate it. So, please continue by choosing the actual loan type (or visit our glossary for further guidance on the various loan types) you are looking for, where you can also enquire with our other financing partners who are not PFIs but offer similar loan types. 

Since Enterprise Singapore shares the loan default risk with Participating Financial Institutions (PFIs), they may, in theory, offer higher loan amounts, longer tenures, or lower rates compared to their usual in-house rates. However, it's important to remember that it is still the same underlying loan type.

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A Working Capital Loan or WCL for short simply means a short-term loan that is used for financing a company's everyday operations. These loans are usually not used to buy long-term assets or investments and are, instead, used to provide the working capital that covers a company's short-term operational needs.

Some lenders may call it a business term loan (or Small Business Loan) even though a term loan simply means a loan where the lender provides cash upfront and receives that money back through a series of smaller payments over a fixed certain amount of time(term) and can technically refer to a number of loan types. 

With FindTheLoan.com you don’t have to worry about all the various terms used by different lenders - reach all our lending partners with just one submission to compare and Find The Loan you need. I

A Working Capital Loan is often the first thing that most SMEs go for as it is the loan that the most number of lenders offer and therefore market. However, there are many other loan types you can consider so it would be beneficial for you to check out the rest of the glossary page!

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Accounts receivable are the monies that customers owe your company for products or services that were invoiced. Accounts payable are the reverse.

When applying for a loan, lenders look at your financial statements to try to assess your repayment ability. But at times, they would also like to look at your AR/AP to determine if you can service your monthly instalments and not just about paying off the loan as a whole. We wrote a blog on common cashflow mistakes and potential issues when one does not prepare a monthly ARAP statement. If you are interested in reading it, please click here.

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Alternative finance refers to a broad range of financial instruments and platforms that offer financing options outside of traditional banking channels. Depending on who you speak to, this can include Venture Debt, Crowdfunding, Stock Financing, and Revenue-Based Financing.

In fact, the term “alternative finance” is becoming somewhat of a misnomer — even traditional banks and financial institutions now offer venture debts, while revenue-based financing functions more like an investment product, and crowdfunding is essentially investor matchmaking rather than a traditional loan.

We previously held an event featuring speakers from these different channels to explain how each one works and when businesses should consider them. To learn more, check out our event recap: Financing Options for Your Business Venture — What to Choose and When.

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Amortization refers to the process of paying off a debt, typically a loan or mortgage, over time through regular payments. These payments usually consist of both principal (the original loan amount) and interest (the cost of borrowing the money). It is more often used in long-term loans such as a mortgage

In an amortizing loan, each payment is divided into two parts:

1. Principal Payment: This portion of the payment goes toward reducing the outstanding balance of the loan. As the borrower makes payments, the amount owed decreases.

2. Interest Payment: This portion of the payment covers the cost of borrowing the money. The interest is calculated based on the remaining balance of the loan.

Here is an example of an amortization schedule.

Amortization may look similar to reducing interest to the untrained eye, which actually refers to the method used to calculate the interest on a loan. With reducing interest, the interest required each month/period is typically calculated each time based on the outstanding balance of the loan after each payment is made. As the borrower makes payments, the outstanding balance typically decreases proportionally each month/period too, leading to a lower interest being charged as well as a reduced instalment amount.

While your balance/principal also reduces from amortization,  a larger portion of the payment goes toward paying interest, while a smaller portion is applied to the principal. This is especially important when there is any early repayment or refinancing, as you may realize your outstanding balance may be larger than you expected despite paying a monthly instalment for months or years, as most of it may have just been going towards paying off the interest with the principal largely untouched.  It is a little similar to when you surrender a life insurance policy early on, you get so much less than how much you paid, compared to surrendering it much later, ratio-wise. 

A lender may calculate your interest based on reducing but offer level-repayment so that the borrower knows what to expect each month in terms of monthly instalments and vice versa for amortization. To sum up the above, there is :

1)How interest is calculated
2)Ways to calculate monthly installment
3)Ways to calculate outstanding balance

For two 100k loans both 10 months long and both P+I monthly instalment - the reducing interest loan will have the outstanding halved to around 50k after 5 months of payments(calculators, where the payment is made at the beginning of the month/period vs end of the month, will show some slight difference or due to rounding), whereas the amortized one will have a much higher outstanding balance.

For more on different repayment and monthly installment methods, we’ve prepared a detailed guide.
If you’re wondering how interest is calculated and how that affects what you actually pay, see our FAQ on how to compare loans and understand your dashboard.

Confused? Don’t worry — our dashboard uses consistent terminology across all offers so you can compare apples to apples.
If you’ve received an offer from another source, you can also use our loan calculator to compare two different loans side by side and determine which is cheaper overall.

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A bridging loan as the name implies is a loan to “bridge” the time between the proceeds from the sale of your old home and the money/loan to make a down payment for the new property for the interim and thus the name interim loan. Other names used by lenders include Bridge Loan, Interim Financing, Gap Financing or Swing Loan.

A business may need short-term cash flow in instances where they have works or projects that ensure funds would be coming in but need some cash upfront to, say, pay for raw materials. Technically that is an intention rather than a loan type as many types of loans can serve that purpose. Though many relationship managers and salespeople may call it a bridging loan, confusing the purpose, for a loan type or trying to be different so that the borrower cannot easily find the same loan type on another bank's website - another problem you will not have if you use FindTheLoan.com to Find The Loan you need!

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A board rate refers to an interest rate that the lender determines internally. How this rate is set, is something usually not revealed to the public.  Unlike international lending or interest rates such as Libor, for example, if you try searching the term online and it returns no results or solely from one lender, chances it might be just a board rate.

With little transparency, and no telling how it will rise or fall in the future, consumers have begun avoiding them. So, some lenders have begun calling them by other names instead of board rates. Also, lenders usually include in their loan agreement the right to change their board rate at any point in time, giving the borrower only as little as 30 days’ notice.

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To own a vehicle in Singapore, individuals are required to bid for and obtain a COE. The COE system is designed as an auction where interested buyers submit bids, and the highest bidders are awarded the COEs. Once a COE is obtained, it must be registered with a vehicle purchase within a specified period. The COE is valid for ten years, after which it can be renewed for a further period, subject to prevailing regulations.

A COE loan in Singapore refers to a loan taken to finance the purchase renewal of the Certificate of Entitlement. When a car owner renews his COE and takes a loan for it, it is different from a Hire Purchase loan which is done on the onset and the quantum typically covers both the initial COE and the cost of the vehicle or sometimes called machine price.

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A construction loan is a type of loan that is used to finance the construction of a new building or the renovation of an existing building (not to be confused with a renovation loan which is usually for the interior of a house/apartment). Construction loans are typically short-term loans that are used to cover the cost of the materials, labour, and other expenses associated with construction.

Some construction loans are disbursed in a series of instalments, depending on the progress of the construction, while others loans are typically disbursed in a lump sum.

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Crowdfunding is a method of raising funds for a project, venture, or cause by collecting small contributions from a large number of people, typically via an online platform and there are 4 types of crowdfunding :

Donation-Based Crowdfunding: In this model, contributors donate money to support a cause or project without expecting any financial returns. Donations are typically driven by the desire to support a social cause, charity, or community effort.

Reward-Based Crowdfunding: In reward-based crowdfunding, contributors receive non-financial incentives or rewards in exchange for their financial support. These rewards can vary depending on the project and can range from pre-ordering a product, receiving exclusive merchandise, or getting special access to events or experiences.

Equity Crowdfunding: Equity crowdfunding allows individuals to invest in early-stage companies or startups in exchange for equity ownership. Investors provide capital with the expectation of financial returns, typically through dividends or capital appreciation when the company succeeds.

Debt Crowdfunding: Also known as peer-to-peer lending or crowdlending, debt crowdfunding involves individuals lending money to borrowers, who can be individuals or businesses. Borrowers repay the loan with interest over a specific period, providing lenders with a return on their investment.

Although most businesses still prefer traditional loans due to the longer cycle and effort to clearly communicate the purpose, benefits, and impact of the project to motivate potential contributors - It has become increasingly popular in some regions in recent years.

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For loans such as overdraft or invoice financing where interest can be calculated using various methods, it is very important to know if the Financing Partner is offering it on a daily, weekly or monthly basis.

Take for example a 45-days invoice of $100,000 at 2% per month calculated accordingly in the following example :

To compare between 2 different loans easily, you can also use our calculator. On your dashboard, when quoting you, your Financing Partners are to indicate which method they are using, if they are not calculating it on a per annum (p.a) basis, so it is easy for you to compare and Find The Loan best suitable for you                      

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A Debt Consolidation Plan (DCP), works by taking out a new loan to pay off your existing loans and debts. It is also called debt restructuring by some lenders.

2 reasons why you can consider that -
1) if the new loan has a lower interest rate than your current one/s, you can save money on interest each month and may be able to pay off your debts faster.
2)Or if the new loan has a longer tenure (up to 10 years for version 1) you may be able to lower your monthly payment making it easier for you to service them each month.

There are 2 versions of DCP. One is a scheme offered by The Associations Of Banks Of Singapore and its participating institutes and is suitable for unsecured debt on all credit cards and unsecured credit facilities with these financial institutions in Singapore, that exceed 12 times one’s monthly income. 

The other type is offered by lenders who are not members of the association and could apply to any type of outstanding loan—secured or unsecured—with any category of lender. Some lenders and loan brokers are marketing using personal loans as debt consolidation to repay your existing debt. While technically you can do so, the assessment methods are different and you may end up paying more.

E.g you have existing debts of $5,000 total with 3 different lenders of different interest, quantum, start dates and tenure. 

A lender that takes over these debts is doing so, either because he has a new "bulk" customer and is willing to give a discount and thus lower interest rate, or the interest environment has improved and he has a better margin (cost of lending vs cost of his funds). But from a risk point of view, unless he is aware of the 3 other lenders you will be paying off - to him you will now have $10,000 outstanding from 4 lenders, especially when he can see your debt level via your DSR and you may be deemed a riskier borrower and he would have to factor that in, in determining how much interest to charge you.

Other terms commonly used for debt consolidation include Debt Refinancing, Loan Consolidation, Consolidation Loan, Credit Consolidation, Debt Management Loan, and Debt Relief Loan. At times, lenders may invent fancy-sounding names purely for branding purposes, but they’re often referring to the same thing.

To learn more about misleading loan labels and how to spot real versus rebranded terms, check out our article:
Don’t Be Clickbaited by Fancy Loan Types That Don’t Exist.

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The debt servicing ratio (DSR) is a financial metric used by lenders to assess a borrower's ability to manage debt repayments. It measures the proportion of a borrower's income that goes towards servicing current debt obligations, such as loan repayments and credit card payments.

The DSR is usually calculated by dividing the total debt obligations by the borrower's gross income. Lenders use this ratio to evaluate whether a borrower has sufficient income to cover their debt repayments comfortably. A lower DSR indicates that the borrower has more disposable income available to manage debt, while a higher DSR may suggest that the borrower is at risk of financial strain or default.

Also, on an industry level, the authorities such as MAS may set a DSR level. They are aggregated among lenders, meaning you cannot e.g. borrow 5x from 5 different lenders, resulting in a 25x DSR level when the industry level is 8x. (Please note this is just an example and varies depending on the loan type and lender type.) 

Please look at the following industry DSR levels in Singapore for the one that applies to you.

For individuals :
Unsecured Credit Borrowing Limit (unsecured loans with banks)
Mortgage Servicing Ratio(MSR) and Total Debt Servicing Ratio(TDSR) (property)
Moneylender DSR 

MLCBs(Moneylender Credit Bureau) reports are usually updated within an hour or 2, and all moneylenders will be able to see who else you borrowed from. Your DSR for one loan type or lender category is typically not used in the calculation of another, and you may be able to borrow from 2 lenders from different categories.

The specific formula and thresholds for internal DSR can vary depending on the lender's policies. Depending on the lender's risk appetite, they could also be lower than the industry DSR. 

Some personal loan brokers just introduce you to the first lender they find, to have a quick sale. We are here to help you Find The Loan you need, and as you can only borrow from a limited number of lenders, you should compare and pick the right one/s for you. 

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For businesses: There is currently no industry-level DSR, though there may be for business property-related loans (Please refer to here for more)

Please also note that where there is no industry-level DSR, members of CBS or MLCB can update it, making it available to other respective members, who may then factor it into their internal DSR. After taking a loan, you can check your reports to see if it has been reflected. Members of CBS are mostly banks and some FIs, while MLCB is all moneylenders. 

However, as CBS (Credit Bureau Singapore) records can take some time to update, banks and non-bank lenders often rely on your latest bank statements to assess your Debt Servicing Ratio (DSR). For example, if there’s a recent injection of funds, lenders may examine the sender to determine whether it’s from a loan disbursement. Also, if you were quoted a loan offer in early July, by mid-August you would have received your July bank statements. If you had previously only submitted statements from January to June and have not yet signed the loan agreement, lenders may request your July statement before proceeding.

Your DSR for one loan type or lender category is typically not used in the calculation of another, you may be able to borrow from 2 lenders from different categories or even a number of non-bank lenders.

The specific formula and thresholds for internal DSR can vary depending on the lender's policies. Depending on the lender's risk appetite, they could also be lower than the industry DSR. 

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Early repayment fees, also known as prepayment penalties or early redemption charges, are fees charged by lenders if a borrower pays off a loan or debt before it's due. These fees are designed to compensate the lender for the interest income they would have received if the borrower had continued to make regular payments over the full term of the loan. However, not all lenders see it the same way especially smaller lenders or those without depositors. As they may not have a large fund to lend out, receiving back the loan earlier may allow them to lend it to new customers, you can try to negotiate for it to be waived off when the time comes. 

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The total cost of taking a loan is more than just comparing the interest rates charged. 

Take, for example, 2 loans both with a quantum of $10,000 and 1 year in tenure, with the 1st loan at 11% p.a per year without any fees, while the 2nd has a lower interest of 10% p.a, but has a one-time processing fee of $1,000 and an annual fee of 1%. Its total fees of $1,000 and $100 make it slightly more expensive than the 1st, with an Effective interest rate (EIR) of 21%, as you will pay a total of $2,100 in interest and fees. 

EIR is meant to be an easy way to compare 2 loans. However, note that there are many ways to calculate EIR - for example, even the projected inflation rate can be used(although seldom), as one dollar today might not be the same tomorrow, to show a lower EIR. Loan calculators may show slight differences depending on whether payments are assumed to be made at the start or end of the month, or due to rounding differences.

Please note the EIR (if any) shown on your dashboard is entered by the Financing Partners. You should consider using our loan calculator to break down your monthly instalment, total cost etc when Finding The Loan best suitable for you.

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A floating rate, also known as a variable rate or adjustable rate, refers to an interest rate on a loan or financial instrument that can change over time. Unlike a fixed rate, where the interest remains constant for the entire term of the loan, a floating rate can vary based on certain factors, typically tied to a benchmark such as a reference interest rate index

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A foreign legal opinion letter is a written opinion of a law firm in the same jurisdiction as the foreign party involved in the cross-border commercial transactions and is a service common provided by many law firms.

As a cross border transaction might end up being considered by the courts of any of a number of countries, a legal opinion is sought to ensure that the foreign party has the necessary capacity and power to enter into the transaction or to certify the legal validity of the transaction.

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A green loan is a type of loan specifically intended to finance environmental or climate-friendly projects. They typically receive more favorable terms from lenders compared to conventional loans, as a way to incentivize green projects. Some key characteristics of green loans:

Use of Proceeds: The loan proceeds are used for projects or activities with environmental benefits, such as renewable energy, green buildings, clean transportation, pollution prevention, recycling etc.

Green Credentials: The borrower provides details on the specific green projects, and the lender reviews the environmental impact and credentials of those projects.

Tracking/Reporting: Borrowers track and report on the use of proceeds and environmental outcomes.

External Reviews: Many green loans will have a second-party opinion or verification from external consultants to validate the sustainability credentials.

They lean towards Discretionary Lending and typically not a loan type that you can "shop" around.

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Hire Purchase is a type of financing option that allows borrowers to acquire a vehicle by making regular payments over time. Under a hire purchase agreement, the borrower makes an initial down payment followed by monthly instalments. Ownership of the vehicle is transferred to the borrower only after the full loan is paid off.

Vehicle loans, also known as auto loans, also allow borrowers to purchase a vehicle through regular repayments. However, unlike hire purchase agreements, a vehicle loan typically does not transfer ownership until the loan is fully paid. This is similar to how a mortgaged house technically remains under the lender’s name until the mortgage is fully settled.

In some jurisdictions, the cost of depreciation may be tax-deductible for businesses that use vehicles for commercial purposes — depending on how ownership is structured. You may wish to consult with your accountant or one of our community accounting partners for guidance on this.

Some lenders or salespeople may use the term leasing interchangeably with hire purchase. However, there are key differences, especially around tax implications. For simplicity, our platform treats the two as functionally similar, with lenders clarifying such distinctions under the “Misc” column on your dashboard.

To learn how to interpret these loan details and compare options, visit our FAQ on how to compare loans and understand your dashboard.

Hire purchases aren’t limited to vehicles — they can also be used for industrial and office equipment. Many buyers default to in-house instalment plans offered by sellers, but it’s worth checking if an external financing option could offer better terms.

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Let’s say you offered a client 120-day credit terms, but you need the cash now. You can take that invoice to a factor, who may advance you, for example, 80% of the invoice value (known as the advance or finance percentage) — helping meet your cash flow needs immediately.

Commonly used by businesses to improve cash flow before customers pay up, invoice financing (sometimes also referred to as forfaiting by some financiers) allows a business to sell or pledge its accounts receivable to a factor. This is why it’s also called factoring or invoice discounting — the factor provides upfront funding in exchange for a discounted value of the receivable.

Sometimes, before you can even issue an invoice, you need working capital to purchase raw materials or inventory. That’s where purchase order financing comes in. It provides dedicated funds to pay only specified suppliers — think of it like an overdraft, but with a restricted use case.

To learn more, read our blog article:
The Inside-Out of Invoice Financing, PO & Purchase Financing.

FindTheLoan.com lets you explore these financing options from multiple lenders — all through one simple submission.
Get started with your loan search here — it’s fast and free.

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Land area refers to the size of the land the property is on, whereas the built-up area is the size of the property where space can be used – such as bedrooms, bathrooms, kitchens etc. For non-landed properties such as condominiums and apartments, land area is usually not used. And for properties that have multiple storeys, it will be larger than the land area. This would help you identify which is which even if your developer may have used another term. If can typically be found on the front plan or brochure.

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Machine scoring in lending refers to the use of automated algorithms or computer-based models to assess the creditworthiness of loan applicants. It involves advanced analytics and machine learning techniques to evaluate various data points and generate a credit score or risk profile for each borrower.

Traditional lending processes often rely on manual underwriting, where loan officers or credit analysts manually review an applicant's financials, credit history, and other details to make a lending decision. Machine scoring streamlines and automates this by analyzing large volumes of data rapidly, aiming to produce more objective and consistent results.

Often, a loan broker may claim they can negotiate better interest rates on your behalf — but we question how that’s possible when many lenders now use machine-driven scoring models to determine interest rates.

Unless you're a large enterprise or a high-net-worth individual, you're unlikely to need financing structured under a discretionary lending model, which is where such negotiation may be entertained. Most borrowers will fall under program lending, where rates and terms are algorithmically pre-determined even if the credit decision is made by a human. See Program Lending vs Discretionary Lending for more.

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A merchant cash advance works by advancing a portion of your future daily debit and/or credit card sales in a lump sum to you. Credit and debit card transactions involve electronic processing through payment networks and card issuers, which requires infrastructure and services provided by merchant services providers. These transactions leave a digital trail that can be tracked and recorded, making it easier for businesses to reconcile their sales and for lenders to assess transaction history, so they can assess you differently as compared to applying for a working capital loan.

Unlike most business loans where there is a fixed term or tenure and monthly instalment, a percentage of your card sales are released to the Financing Partner until the lump sum has been paid back.

It is a pre-negotiated percentage (for example 5-20%) and may be suitable for retailers with fluctuating monthly sales due to seasonal demand, as they repay more when there are more sales, instead of a fixed monthly instalment that can be harder to stick to on months where there are lesser customers. 

The mutually agreed-upon percentage is called a “holdback” or “retrieval rate” and the “lender” will prepare a letter for you to sign and inform the card processor to process it.  

Other terms used for MCA include Future Receivables, Point of Sale Loan, POS Loan, Credit Card Receivables Financing, Turnover-Based Loan and Merchant Financing.

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An overdraft (OD) is a standby credit facility that gives you instant access to short-term cash flow. Unlike a term loan with a fixed tenure, you can typically repay it whenever your cash flow situation improves and any amount you repay into the OD account can be withdrawn again as long as the total outstanding amount is within the OD limit. Thus it is also called a “revolving credit facility or standby credit”. Some lenders also call it "cash credit" or "line of credit".

An overdraft can be a valuable financing instrument to consider even when there is no immediate need, as interest is only charged when there is a drawdown. Having a standby credit on hand could be useful for those urgent times when you do not want to wait for your loan to be approved. However, interest for an overdraft tends to be higher than a term loan and is best used for short-term ad hoc needs. 

There are 2 types of ODs – Secured and unsecured. Unsecured ODs are issued using largely your credit profile & income to determine your repayment ability, while secured ODs allow you to pledge collateral such as insurance (that has cash value), property, certain investments, and deposits etc as security and can be as high as 120% of the value of the collaterals depending on the lender and quality of the collaterals. 

To get started, sign up/apply here.

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A personal loan is a type of loan that is designed to help individuals meet their financial needs. Personal loans can be used for a wide variety of purposes, including financing a home renovation or repair project, paying for medical expenses, or covering the cost of a wedding or other large event or emergency.

Personal loans can also be used to fund businesses. Business owners can structure it as a loan to the company or shareholders with a legal repayment obligation to you. But you are still directly responsible to the lender, while your shareholders will be responsible to you.

A payday loan is a form of personal loan, just that instead of giving you a tenure of weeks or months, it is based on the next payday for repayment.

Personal loans are typically unsecured loans, which means that they do not require collateral, such as a home or car, to be taken out.

It’s important for borrowers to carefully review the terms and conditions of any personal loan — including the interest rate, fees, and repayment terms — before committing.

To better understand how to select the most suitable loan and what to watch out for, read our FAQ on how to compare loans and understand your dashboard.

Get started with your loan search here — it’s simple and free.

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There are two main costs borrowers face when taking up a loan — whether for personal or business purposes: interest and fees. While most borrowers focus on finding the lowest interest rate, they often overlook fees, which can significantly affect the total cost.
You can use our loan calculator to compare total loan costs more accurately.

One of the most common fees is the processing fee (also known as the admin fee or origination fee) — a one-time charge based on a percentage of the loan amount or a fixed amount, applied in addition to interest.

Application fees are less common in Singapore but can be frustrating — they may be charged even if the loan isn’t approved. More often, lenders may request a commitment fee, or what some call a cancellation fee, which covers costs (like appraisers) if you pull out after terms are agreed.

⚠️ These are not applicable under program lending in Singapore. Be cautious if any lender or loan broker asks you to pay such fees upfront.

Other fees you might find on your term sheet include:

• Early repayment charges or prepayment penalties — fees for paying off the loan before the agreed period.

• Late payment fees — charged if you miss a scheduled payment.

• Returned check / insufficient funds fees — charged when your GIRO or cheque bounces due to lack of funds.

• Payment processing fees — sometimes applied if you insist on paying via cheque instead of digital methods.

Confused? Don’t worry — FindTheLoan.com is built for transparency. All our financing partners use the same standardized terms when quoting, so you can compare options clearly.
From your dashboard, you can view fee breakdowns side by side and determine the most suitable loan based on your total cost — including any termination, late payment, or miscellaneous fees.

To better understand whether your loan falls under a program lending or discretionary lending structure, check out our glossary entry on program vs discretionary lending.

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Program lending, also known as policy-based lending, formula-based lending, or checklist lending, refers to loans issued based on pre-set criteria or guidelines. These help lenders make quicker decisions and process large volumes of enquiries efficiently.

Often, a loan broker might claim they can negotiate a better interest rate for you. But under the “straightforward” nature of program lending, most borrowers will simply find that different banks offer different rates — and the real way to secure a cheaper loan is by comparing across lenders.

Today, many lenders use machine scoring to assess creditworthiness, eliminating the possibility of negotiation altogether. After all, if every deal could be negotiated, the cost of underwriting would rise — and that could ultimately drive up borrowing costs for everyone.

By contrast, discretionary lending allows for a more tailored and flexible approach. Lenders evaluate not only the numbers but also the borrower's business model, growth plans, and broader financial strategy. Because of the time and manpower involved, this method is usually reserved for very large loan amounts, typically for big corporations or high-net-worth individuals.

Discretionary lending often involves a back-and-forth process over multiple loan terms — not just the loan quantum or interest rate. These negotiations are typically handled by someone at the C-level, like a CFO, and rarely by a loan broker who may not be involved in the day-to-day operations or have deep knowledge of the borrower’s financial position.

A borrower under discretionary lending often has a long-standing relationship with their primary bank. This gives the bank richer insights into the borrower’s history, allowing them to assess applications differently — and making it less advantageous to shop around.

There is no strict line separating program lending from discretionary lending. Some relationship managers may use the term "discretionary" loosely, depending on internal policies and loan structure.

Whether you're applying under program or discretionary lending structures, FindTheLoan.com helps you compare offers easily across multiple lenders — all in one place.

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Property Gear-Up or Cash-Out Loans are similar to refinancing, but with one key difference: instead of just refinancing the outstanding loan amount, you borrow based on the current market value of your property or land — unlocking equity built up over time.

Let’s say Daniel initially borrowed $700,000 on a property worth $1 million. Years later, he has only $300,000 outstanding. Interest rates have since dropped, and by refinancing with another bank at a lower rate (e.g. 1% instead of 2%), he can enjoy reduced monthly instalments.

However, if Daniel chooses to gear up or cash out, he could borrow the full $700,000 again, using part of it to pay off the existing $300,000 and gaining $400,000 in cash — which could be used to fund a business or invest in another property. If the property’s valuation has increased or a lender now offers a better Loan-To-Valuation (LTV) ratio, he may be able to borrow even more.

This form of financing is also referred to as: property equity loan, mortgage withdrawal, reverse mortgage (in some countries), home equity loan, cash-out refinancing, equity release loan, second mortgage / 2nd charge loan.

If interest rates have risen, Daniel may not want to refinance the full amount. Instead, he could continue servicing the existing $300,000 loan at the lower rate and take a new $400,000 loan from another lender — a second charge or caveat loan.

In this case, the second lender places a lien, charge, or caveat on the property. A caveat acts as a legal warning to others that the lender has a financial interest in the property.
Note: In Singapore, HDB properties cannot be used for second liens at the time of writing.

Caveats vs Liens vs Charges

• Caveat: Notifies others of the lender’s interest; may block transfers/sales without consent

• Lien: Gives the lender a right to seize property if the borrower defaults

• Charge: A form of lien that typically requires legal proceedings before repossession

Sometimes a lender may only file a caveat, even after the previous lender is paid off, for cost efficiency.

If the property is owned by a company, apply under the Business category. If it’s owned by an individual shareholder, they typically take the loan personally and inject the funds into the business.
Learn more:
When are shareholders' NOAs required for a business loan?

Some lenders only lend to companies, prompting a few HNW individuals to set up entities solely to qualify. Our Community Partners — including accounting firms — can assist with incorporation.

These lenders typically serve High Net Worth (HNW) individuals with $2M+ in assets. But before setting up a company just for this, try getting quotes from Consumer lenders — the assessment is similar, and setting up a company may not save you money.

In some cases, yes — industrial equipment or machinery with high resale value and liquidity can also be geared up, especially if the lender can easily dispose of the asset in the secondary market.

The same type of loan may be referred to as: second mortgage, lien-based loan, cash-out refi, leveraged loan, property equity loan, and more.
Even relationship managers switching banks have gotten confused by the naming.
If you're unsure what you're discussing matches what a lender means, share our glossary page with them.

With FindTheLoan.com you don’t need to worry about these naming differences. We help you compare offers from multiple lenders using one submission — without needing to chase down banks one by one.

For more, check out:

• What is refinancing?

• Things that affect your ability to get a loan or the ideal interest rate

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Property/Land Sales Proceed Advancement Loan is an advancement of your sales proceed or loan disbursement, which as it will only be completed/disbursed much later - but as you need cashflow immediately for example your business - can be considered when you have
1) an exercised OTP from a buyer or say during an en-bloc sale, or
2) a letter of offer for the refinancing/new loan of the property/land, from another financial institute. For the latter, please note some banks may specifically state in their agreement that is not allowed.

Please note for property-related loans under a company name, you should choose the Business category instead of Consumer, followed by the loan type. If the property belongs to an individual shareholder - he/she usually takes up the loan in his/her personal capacity and loans it to the company/shareholders.

There are rare instances where an individual set up a company just to be able to borrow from lenders that can only lend to businesses. Note: These lenders typically only lend to borrowers that are High Net Worth individuals with assets totalling at least 2mm. We recommend that you get quotes from the Consumer lenders first to see if there is a quote you like and reach out to us to see if it is worthwhile to get quotes from these business lenders.

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A property decoupling loan is used by homeowners who are going through a divorce and want to separate their mortgage from their property. This usually means a new loan is required as the previous loan is being serviced by 2 or more people. Often, it is not as simple as just taking one name out, as when the loan was initially offered, the lender assessed the risk factors based on 2 or more people.

It is important for homeowners to carefully consider the terms and conditions of these loans, as well as the potential risks and benefits of separating their mortgage from their property, before taking one out. Some of the factors that homeowners should consider include the interest rate, fees, and repayment terms of the previous loan, as well as the potential impact on their credit score and current financial situation.

In some regions, a decoupling loan is for homeowners who want to sell their property but have not yet paid off their mortgage and are thus unable to do so(Please read our article on Lien for more details). So, they will take out a property decoupling loan, which is used to pay off their existing mortgage. In Singapore, we typically call it a bridging loan instead.

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A property loan, also known as a mortgage, is a type of loan used to finance the purchase of a property, such as a home or a commercial building or the land beneath it. Some lenders may call both as property loans whereas some will offer land loans as a separate product.

Property loans are typically secured loans, which means that they are backed by the property being purchased as collateral.

There are a few different types of property loans, such as fixed-rate mortgages, floating-rate mortgages, and interest-only mortgages depending on the region. Fixed-rate mortgages have a fixed interest rate and a fixed repayment term, while floating-rate (also called adjustable-rate in some regions) mortgages have an interest rate that can fluctuate over time. Interest-only mortgages allow borrowers to pay only the interest on their loan for a set period of time, after which they must begin paying off the principal as well.

The latter is technically a repayment method rather than a loan type). However lenders like to brand their loan types differently to try to stand out but end up creating a nightmare for consumers with so many different terms for the same loan type. So do refer to our glossary and not just rely on the label they use to make sure both are on the same page, and you do not end up applying for the wrong loan type if you are not using us!

Please note for property-related loans under a company name, you should choose the Business category instead of Consumer, followed by the loan type. If the property belongs to an individual shareholder - he/she usually takes up the loan in his/her personal capacity and loans it to the company/shareholders.

There are rare instances where an individual set up a company just to be able to borrow from lenders that can only lend to businesses. Note: These lenders typically only lend to borrowers that are High Net Worth individuals with assets totalling at least 2mm. We recommend that you get quotes from the Consumer lenders first to see if there is a quote you like and reach out to us to see if it is worthwhile to get quotes from these business lenders.

Get started with your loan search here — it’s fast and free.

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Flat, compounding or reducing interest can drastically change how much interest you are actually paying especially for a loan with a long period. For example, a $100,000 (P) loan at 3% p.a (I) with just a 5 years (n) tenure calculated using the 3 methods can cause you to pay more than double the interest amount if not careful:

For a Flat interest rate loan, the interest you have to pay is simply 3% x 5 years. Thus it's also called simple interest. 

For, a reducing-interest rate loan, the next calculation is on the principal balance outstanding and not the initial principal amount. In the 1st year, you pay interest of 3% and therefore $3,000. But in the 2nd year, your principal would have been reduced to $80,000 (calculators, where the payment is made at the beginning of the month/period vs end of the month, will show some slight difference or due to rounding) and 3% interest on it would be $2,400 and so on if it is based on yearly servicing. If it is based on monthly servicing, it would be the same method :  (3%p.a / 12 months) x the reduced principal that month.

On your dashboard, we will convert any reducing interest to simple/flat so that it is easier for you to compare apple to apple. Simple interest is used on your dashboard instead of reducing as most banks and lenders communicate in simple interest plus it is also easier to calculate the total interest, even though it may appear more expensive. However, please note on the actual term sheet/loan agreement, if they are used to communicating in reducing interest instead, they may revert to that. Your total interest should remain the same as it is simply their preferred method of communicating interest rates internally or externally or if required by law. You can also double-check the amounts again by using our loan calculator.

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Refinancing a mortgage or "refi" for short, means paying off an existing loan and replacing it with a new one. Borrowers often choose to refinance when the interest-rate environment changes substantially, causing potential savings on debt payments from a new agreement.

Other reasons why borrowers refinance include:

• To shorten/lengthen the term of their mortgage resulting in a higher/lower monthly installment respectively.
• To convert from a floating rate to a fixed-rate mortgage, or vice versa

There are many ways, where a refinancing package can be sold to you by a RM or broker to let you think there is a real saving where there is not. Consider reading our blog to ensure you are not paying more after a refinance. 

To get started, sign up/apply here.

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A renovation loan is a type of loan that is used to finance the renovation or repair of a property. Renovation loans are typically short-term loans that are used to cover the cost of materials, labor, and other expenses associated with renovating a property.

To get started, sign up/apply here.

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There are several repayment terms types out there(not to be confused with Early repayment) and it is important to understand how which one works as it impacts your ability to service a loan. On your dashboard, please note that the "Estimated Monthly Payment"  are all shown in P+I only for your convenience in comparing one loan with another as it is the most widely used. The actual repayment method will be under the Repayment Terms column. Continue reading on, to understand the different possible repayment methods.

Let us look through them with the use of this example:  Daniel borrows $100,000 and the tenure is a year while the interest is 20% p.a. for simplicity. His total P (principal) and I (interest) would be $100,000 + $20,000 = S120,000.

Interest-only loans tend to be more expensive as the lender requires a longer time to receive its principal back because it means a longer exposure to defaults and less cash flow for it to lend out again until much later.

Front end refers to the lender taking an amount upfront, typically the interest amount of $20,000 disbursing only $80,000 to him, which he then services $ 6,666.66 monthly for 12 months ($80,000/12 months). In some regions, it is also called a Discount Loan.

A Balloon repayment or a two-step mortgage can further reduce the monthly repayment installment for when the borrower has limited repayment capacity in the earlier years but is able to repay or refinance the loan after several years.

If it is a Deferred repayment (also known as Back End or Moratorium), the lender requires Daniel to start servicing the loan only after a couple of months or years. For example, in renovation loans after the renovation has been completed.

The last few types tend to be less common, as the principal is at risk to the lender for a longer period, and as such the interest charged could be higher, to offset the risk the lender is taking.


On your dashboard, all the various repayment terms are clearly displayed so that you can easily compare the various offers from our Financing Partners to find out which is The most suitable Loan for you.

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Revenue-based financing (RBF) is a form of alternative financing that provides capital to businesses in exchange for a percentage of their future revenue. It is a financing model designed to support growth-oriented companies, particularly tech startups with recurring revenue(like SaaS, and subscription services), by offering them flexible funding options without the need for traditional collateral or fixed repayment schedules but based on their revenue.

It resembles merchant cash advance where the loan repayment is also based on future revenue. However, MCA's assessment tends to be more on using historical sales to try to project future revenue, such as from your POS machine.

While RBF is often equity-free and not considered an investment, the assessment method weighs heavier towards qualitative factors than just quantitative factors from your financial statements and thus is not something a broker can easily facilitate apart from just connecting the borrower and lender. 

 

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A stock loan is a financial arrangement wherein an investor or borrower, borrows funds by using their existing stocks as collateral. Rather than selling the stocks outright, the investor temporarily transfers ownership of the securities to a lending institution or individual, commonly referred to as the lender. In return, the borrower receives a loan, typically a percentage of the stock's value.

Depending on the lender, they can be at times, a director of a large unlisted or listed company's own stock in the company. This is how billionaires like Elon Musk probably pay less income tax than you and I. As they can borrow against their own stock to fund their purchases of a jet or mansion, they do not have to draw an income.

In Singapore, lenders generally lend against the borrower's personal assets of various stocks or a director's own stock in a listed company. Also, Stock loans are generally not done as a form of program lending(refer to another article of ours for more) and are best left to the directors & officers for to company to apply and enter into, than for example, via a broker.

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With an Unsecured Loan, the borrower undertakes to make the repayments, and the lender will make a judgement on whether or not to lend solely based on their creditworthiness. 

A Secured Loan is when a borrower puts up a security(collateral) using something of value, such as a house, that the lender can take and sell to recover their losses if the borrower does not keep up with the loan repayments. Such loans include secured overdrafts and property gear-up and they are usually cheaper than unsecured loans or the quantum larger, as the risks for the lenders are lower.

Some lenders consider loan types like invoice financing and contract financing as secured loans too, especially if a strong paymaster discloses them. You can find more details on them on the same page.

When you take out a loan to buy an asset or house, the asset or property itself is securing the loan if the lender can repossess it directly such as by having a charge or lien over it and it would be considered a secured loan too. 

In the UK, a secured loan is also called a debenture, whereas in the US, a long-term loan even when unsecured, is called a Debenture.
 

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Simplified underwriting streamlines the loan approval process by reducing documentation requirements and relying on alternative data sources. This accelerates decision-making and improves access for underserved borrowers. However, if not properly calibrated, it can increase credit risk. As a result, lenders typically offer lower loan amounts or charge higher interest rates to offset the added risk.

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Reverse factoring is a type of supplier finance solution that companies/buyers can use to offer early payments to their suppliers based on approved invoices. Suppliers participating in a reverse factoring program can request early payment on invoices from the buyer or other financial institution, with interest or discount and with the buyer or supplier sending payment to the financial institution on the invoice maturity date if it is the latter. 

Many RMs use it interchangeably with PO financing. We recommend when applying with any lenders, to check their glossary if any, to make sure you are not applying for the wrong loan type delaying your process. Or sending our article over to clarify if they meant the same thing.

Check out our blog for more on reverse factoring.

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In the context of loans, "tenure" refers to the duration or period of time over which a borrower is expected to repay the loan in full. It represents the repayment period or the time it takes to satisfy the loan's principal and interest obligations.

Shorter tenures are typically associated with loans that have higher monthly instalment amounts but result in lower overall interest costs. while, longer tenures usually involve smaller monthly instalments as the loan is spread out over a loan period but may result in higher overall interest payments over the duration of the loan. To learn more, we suggest heading over to our article "How to compare loans and understand your dashboard" under our Glossary page.

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Venture debt is a type of alternative finance that combines elements of debt and equity investing to provide capital to high-growth, early-stage tech companies and is not available to traditional businesses typically.

Venture debt is typically provided by specialized lenders who understand the unique characteristics and risks associated with investing in these companies. Venture debt providers combine their loans with warrants (or rights to purchase equity), to compensate for the higher risk of default, although that is not always the case.

In recent years, the Singapore government has made some effort to promote the incorporation of venture debt providers and the use of venture debt, to provide more channels of financing available to enterprises. At the point of writing, Enterprise Singapore has a page dedicated to venture debt. If you are a tech business that can consider venture debt, you may consider heading over to their website.

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