Business Loan in Singapore: The Answer to Your Business Dream
Businesses come and go largely because the owners do not have the money to sustain them due to lack of a business loan. Indeed starting a business takes a lot of courage because you are venturing into the unknown. It takes faith and guts to start a business but it also takes money to run one. Capital is important in any business venture. If you have an innovative idea but no money to finance it, you need to think about getting a business loan. A loan will bring your idea into life and enable you to work so that you can become financially secure.
Moneylenders are able to offer no risk loans to business owners especially if running a startup and have no collateral. The best thing about obtaining this loan from a moneylender is the freedom you have to use for any business need. If you want to purchase assets, increase stock, meet business expenses, then this is possible. The lender will not restrict you as there is an understanding of the passion that you have to make your business dream come true. Here are other facts to look into so that your goals are achieved:
When you want to apply for a business loan, you need to look into issues such as the interest rate, the amount of loan that you need and how you are going to repay it. These are the major issues that you need to understand in order to see your business expand.
Research widely so that you can get the best moneylender in the market and the best terms. Each moneylender offers a different package to his clients as long as it is within the law. You can benefit from inquiring from people who have previously worked with the moneylender so that you can understand their work ethic.
Always find out the reputation of the moneylender. If it is a firm that offers professional services and goes out of the way to assist clients, this is the lender that you should consider working with.
If you have a poor credit history, you need not to shy away from accessing a personal loan from a moneylender. Moneylenders are financial advisers who have years of experience in helping businesses come from recording losses to profits. They always ensure that their clients are getting the financial assistance that they need including changing business structures and operations to take the business to the next level.
Business Loan Guidance – Working Capital Loan
The primary source for finances for small business owners in Singapore is family and friends. However, the amount of money obtained from these lenders is often not enough to meet the financial needs of these growing businesses. Traditional financial institutions such as banks and other private lenders are beginning to introduce business loan products to suit entrepreneurs with small businesses. One of the most common products available from lenders is the working capital loan.
The tough economic climate we are experiencing today is affecting the cash flow of many small businesses. Many business owners are finding it difficult to balance their books and ensure that their heads remain above the water. A working capital loan is therefore a great solution for businesses that find themselves in a financial crisis.
This type of business loan provides the business with cash to finance its everyday operations. The loan is usually short-term as it is designed to give the business a helping hand until it begins to generate revenue again.
These loans may be secured or unsecured. Unsecured loans are only given to those businesses that are considered to be of low risk. Start-ups are considered high risk as they are yet to show their profit. Start-ups are therefore required to provide collateral in order to secure a working capital loan.
Working capital loans can take on various forms including:
This is an extension of credit provided by banks. The bank will agree with the business on a maximum amount that can be borrowed from the bank. The business can therefore overdraw money from their current account to the limit set by the bank. The business will however, have to pay back the money with interest at a rate agreed on prior to the signing of the overdraft. This type of business loan enables businesses to access money quickly for short term use.
This is money lent on the basis of trade debts. There is no collateral involved. The bank gives you an advance based on the accounts receivables. This means that customer will settle with the bank directly. The bank will however charge a fee on the invoice to be paid by the customer. The main advantage of this type of loan is that you can access money as soon as you issue an invoice.
Short term loans
These are similar to regular long term business loans but have a shorter maturity period (usually a year or less). Most money lenders will require a form of collateral for this type of business loan.
Look For a Business Loan before You Need One
Yes, you heard that right, it was no misprint. It’s no secret that we all need financial assistance every once in a while in the form of a loan, even with all the right tools and spending habits. The same is truer for businesses, where the cost of seemingly ‘small’ initiatives may be not as small and the returns take a while to start streaming in. In fact, finding capital is usually first on the list for entrepreneurs trying to start up or even expand business operations.
This is largely because most business owners do not know what to do to secure a small business loan. Mostly, they try to do so in a rush at their banks where according to statistics, only 10% of applicants are ever successful. But here’s why you want to start finding a loan before the critical point reaches:
Know your options
There is so much more out there for you than your local bank where your business holds an account. Banks are usually on the lookout for bigger and more lucrative businesses to invest in where returns are more than sure so your small business won’t cut it for them. However, if you have an excellent credit score, adequate security and have been in business two to five years, you stand a chance. Otherwise, cruise the market for other options from licensed moneylenders who are less rigid and more willing to assist.
Have time to align your ducks
Once you know what your business might need in the future, you can make the right plans and have your sources of financing lain out so that you are well prepared for most eventualities, even emergency ones. Know how much you would need and where you can get the best terms depending on amount and duration of repayment. Without these, when your business faces an emergency situation such as cash flow constraints and the bank is unwilling to help, you may find yourself accepting terms you otherwise wouldn’t in the panic ensuing. You won’t find the right lender with perfect terms for you overnight.
Improve your current credit situation
It’s not about jinxing yourself by anticipating bad times, but unfortunate circumstances will arise, so you want to be in your best shape. Sacrifice as much as you can into savings; maximize your repayment installments to finish with existing loans as fast as possible, so that if you need a business loan in future, you are in the best shape to secure the most suitable terms. The better the shape you’re in, the more bargaining power you’re going to have.
About Cash Express and the 1-4% interest per month business loan
Cash Express is the ultimate solution to all emergency cash situation. With our round the clock availability and quick response, more and more people have come to consider our services indispensable. The 1-4% interest per month personal loan is not a gimmick. We help all Singaporeans, Malaysians and other foreigners working in Singapore benefit from the great offering.
So what are you waiting for? Speak to us now for a business loan today.
Fill up our Online Application Form and we will set you on the path to financial freedom with our convenient loans and favourable repayment terms.