Bridging Loan and Revolving Credit

Business Type

Bridging Loan:

A temporary, short-term loan designed to bridge financial gaps.

 

Revolving Credit:

A flexible loan allowing repeated borrowing up to a set credit limit, with interest on the amount used.

Features

Bridging Loan

  • Cover short-term financial gaps
  • Interest Rates typically higher than traditional loans

 

Revolving Credit

  • Provides flexible funding usually for working capital.
  • Credit limit up to which the borrower can withdraw funds
  • Borrower can repay and re-borrow within the credit limit.
  • Interest charged only on the amount drawn, not the entire credit limit
  • Funds can be accessed repeatedly as long as payments are made and limit is not exceeded.

Application Requirements

  • Valid registered companies;
  • Justification for the application of the facility and a clear source of repayment;
  • Good credit standing of the applicant, strong ability of repayment and sound administration system;
  • Satisfactory collateral;
  • Financing requirement is consistent with the Bank's credit policy.

Documents Required

  • Letter of application for the facility stating

(a)    Type and loan amount required 

(b)    Purpose of the loan

(c)    Tenure

  • Business Registration Form (Form A/B) duly certified as true copy by the Company Secretary
  • Certificate of Incorporation (Section 17) duly certified as true copy by the Company Secretary
  • Notice of Registration of Company (Section 15) duly certified as true copy by the Company Secretary
  • Constitution of a Company (Section 32) certified as true copy by the Company Secretary, if applicable
  • Audited accounts for the last 3 years and the latest management account.
  • Brief history and background of the company or Company Profile
  • Photocopy of Directors & Guarantor’s IC
  • Any other related documents as may be required by the bank