SME Loans

Everything You Need To Know About OxProp, Singapore’s Latest SME Business Loan Provider

Read on to find out all that you need to know about OxProp, Singapore’s Latest SME Business Loan Provider, from its fees and loan process to its features and who it is for.

Getting a business loan in Singapore is no easy feat. There are a few requirements you have to fulfil.

Requirements For Obtaining A Business Loan For Your SME:

  • At least six months since your business has been incorporated
  • Proof of annual revenue
  • Government-assisted Financing only for businesses registered and present in Singapore with 30% owned by Singaporeans/PRs
  • Good credit score

Firstly, Providers typically require your business to be around for at least six months to qualify. If you are established, you would still need proof of your annual revenue to lend to you, making it hard for new business owners to get a business loan.

Secondly, Government-assisted financing is open only to businesses registered in (and present in) Singapore, which has 30% of business equity owned by Singaporeans/PRs. If you do not have enough Singaporean/PR shareholders, you will find it harder to get a business loan.

Lastly, credit scores play a huge role in determining if the lender will reject your loan application since a low credit score causes banks to doubt your ability to repay your loan.

With so many hoops to jump through, not every SME is able to successfully obtain a loan to tide through the difficult times.

That’s where OxProp Capital comes in.

What Is OxProp Capital?

Oxprop Captial is a moneylending company that specialises in property-centric loans with a proven track record, having disbursed over S$100 million worth of loans so far. They offer commercial property mortgage loans and home mortgage loans that can be used to finance SME businesses without requiring a good credit score, total debt service ratio (TDSR), or revenue-generating justification, as long as the borrower has a house that is fully paid for.

With a mission to help people reach financial independence to realise their ambitions, they provide an alternative way to offer a wide variety of secured loans.

OxProp Capital’s Property-Backed Loan

Oxprop Capital’s collateralised property loan is a loan that is backed by your home as collateral. For many, homes are a considerable proportion of their wealth. A lot of liquidity is locked up and typically, cannot be accessed, which is a huge opportunity cost.

Home equity loans in Singapore often have lower interest rates than other types of credit because the risk to the provider is smaller than with an unsecured loan. You will save money with a lower interest rate, and the interest you pay may be tax-deductible.

It’s a simple method to free up extra cash at a low current mortgage interest rate, allowing you to expand your investment portfolio, establish a business, or deal with a financial emergency.

Using your home to back your loans allows OxProp Capital to provide you with the best loan rates because it can pass you the cost savings from the reduced risk. Therefore, home equity loans are suitable for people who have most of their net worth placed on their property.

You can borrow up to 80% of your house’s Loan-To-Value (LTV) ratio at a fixed interest rate tailored to your conditions and needs. They are incredibly transparent with their fees and offers customised financing service that provides you with flexible borrowing options that can help you improve your liquidity.

Alternatively, if you do not have a house that is fully paid for, you can choose to have a term loan. Term and home equity loans usually have tenures of around 5-30 years, depending on the lender and its repayment options.

Legal FeeProcessing Fee
~0.5%~1-2%

Unlike traditional business loans that take a few months to process, Oxprop Capital has a relatively quick processing time of 1-2 weeks, depending on your situation. Although it is slower than personal loan platforms like Lendela which only takes a few days for the money to be provided, it is still the better alternative for business loans, especially with the high loan amount (up to S$15 million) OxProp Capital can provide.

Loan Process

Oxprop Captial has a simple loan application process that you can follow.

To apply for a loan, all you have to do is to submit an application here and a representative will get in touch with you. You can discuss customising your loan and submit the required documents, mainly requiring income and property valuation, for the application.

After all that is done, you will need to head down to OxProp’s office to sign the offer, and your loan will be disbursed to you.

The loan processing disbursement for OxProp Capital typically takes no longer than a week.

Who is Suitable For Oxprop Capital Property Loan?

Consider this if you are looking for a high loan amount with a fast processing time
  • Max Financing
    • up to 80% of home value, capped at S$15M
    • Fees
      • 2% of the amount raised
      • Interest Rate
        • 7% p.a.
        • Eligibility
          • None

          Oxprop Captial seems to provide the best value for those high-paying employees or entrepreneurs that have paid for their house fully and want to (or already have) started a business.

          Some people in Singapore might want to establish themselves by securing a house before going for their long-term goals to be business owners. However, with a lack of capital after paying for their home, they have to choose to forgo their dreams since most of their net worth is tied to their house.

          OxProp Captial eliminates that issue by reallocating the house's value to back up a loan, providing opportunities for budding entrepreneurs with a property.

          In addition, OxProp Capital’s property-backed loan might also be useful for entrepreneurs who are facing short-term cash-flow problems due to the current economic climate.

          If you have a projected period you’ll have to pull through before your business starts making profits again, and you have no way to get a business loan from a bank, OxProp’s property-backed loan can reallocate your property’s value to the loan, letting you have sufficient cash flow during these tough times.

          Features of OxProp Lending Platform

          In short, here are three features of OxProp Capital’s platform that might just be what you need:

          Summary of OxProp Lending Platform
          Rates are outlined clearly in Offers; No hidden costs are attached
          Tailored loans according to your requirements for you to choose
          Available loans for those with poor credit ratings.

          The good thing about OxProp Capital is that they are extremely transparent about their rates with no hidden costs. They also tailor loans based on your criteria instead of having a one-size-fits-all model.

          Lastly, because you use your property as collateral, those people with poor credit ratings will be able to get them as well.

          Conclusion

          Traditional business loans tend to gatekeep budding entrepreneurs away from financing due to the risk of having a business going bust. Therefore you have to jump through many hoops and provide a business plan or proposal with justified and calculated financials such as current and expected growth and revenue, which can be difficult to predict.

          OxProp Captial aims to solve the issue of strict requirements from banks by tying the collateral to your property rather than having to justify the expected growth of your business, making it friendly for people starting their business

          Click here to check out our full review on Oxprop Capital, and click here to apply for a property-backed loan for your business financing.

          This article was written in collaboration with OxProp Capital. While we are sponsored by them, we still review products and services with an objective lens and stay true to our mission–providing you with the best recommendations and advice to make smarter financial decisions.

          Tan Boon Hun

          Boon Hun spent over five years in the content marketing space as the managing editor of Goody Feed creating interesting and relevant content for the social media generation. In 2022, he moved to the FinTech space while remaining true to his roots, intending to bring financial literacy to more people in Singapore. When not doing his work, he can be found watching people build homes on YouTube.