How to Get a Small Business Loan in Singapore – A Beginners Guide
09 MARCH 2021
Are you a small business owner in Singapore looking for the best options available to get a business loan to upgrade your existing business. Looking for a Commercial Loan Broker in Singapore for financing your business? Almost every business in Singapore needs some sort of financing help for their daily operations, not all the businesses are started with a good amount of capital. There are numerous brokers or lending platforms available worldwide offering loans for businesses, if you opt to apply for loans through the lending platforms available you might be confused with the set of rules and paper works which needs to be submitted to them, it is best to approach a Commercial Loan Broker with quiet good experience to guide you through the process and choose the best.
Things to ask before you apply for a loan
Alright, now you have made your mind to get a loan in Singapore, whether you apply for a loan in Bank or in any lending platform can be decided after you get this checklist ready with you. Try to answer the below questions and get yourself ready to move ahead with the next step
- Why should I take a loan now?
- How much do I require for my business?
- When will I need the money?
- Will I be able to repay the loan?
- Do I have all the business documents ready?
- Can I repay the loan in a short period of time
Lets see how we can answer the above questions, may be you could try evaluating yourself with these details
Why should I take a loan now for my business, is it very important to run my business or is it something that needs to be done for the uplift of my business? Though you might already have the answer to this question, it is important to be clear of this extra capital which you are going to get, this will help to identify the answer for the second question, how much you would require for your business. A commercial loan broker can help you to identify the answers for these questions easily, he will be able to guide you through the eligibility amount, whether you can take the loan for long term or short term etc. Identifying the amount you require for your business is crucial, you cannot apply for a loan with less capital, this inturn will lead to cash flow issues.
Will I be able to repay the loan, answering this will help to identify your eligibility criteria for the loan. Banks or the Money lending platforms will first evaluate your eligibility criteria for the loans, when you take a business loan both personal and your business credit score are taken into consideration. A business with a healthy cash flow meets the criteria, that doesn’t mean the business with less cash flow are not eligible for the loans, they also do but their credit score evaluation varies and the criteria differs. Speak to your loan broker now to know your eligibility criteria.
It is necessary to have your documents ready before you apply for a loan, there are vendors who can approve a loan within 24 hrs if proper documentation is submitted, if you do not have the necessary documents then you are delaying your application. Commercial Loan Brokers helps to identify the application documents which are required for quick processing. The documentation for a bank varies and the documentation for a money lending platform varies.
Now you have the answers to all the questions before you apply for a loan, now you need to be ready with the questions you need to check with your money lending agent before you apply to them.
- Does the money lending platform loan to your business domain/industry?
- What are the terms and conditions for getting a loan?
- Are there any hidden terms that I need to know?
- What is the payment schedule, frequency of payment?
- What are the methods I can make the payment?
When your money lender is able to give clear information for the above questions, you may have to check whether the terms suit you. Getting a business loan in Singapore is not a difficult task, Yours Advisory helps in providing a one stop financial services advice in Singapore. With ample experience and friendly approach you can rely on Yours Advisory for bespoke financial solutions. If you are looking for a Refinancing home loan broker call us now, we can guide you through the process.