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