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Getting A Citibank Business Loans Singapore

Business loans help business people in reaching their goals towards success. How is that?

There are many reasons why SMEs or even big companies take business loans. One of the reasons is business expansion. It’s one big leap your business can take, and it only shows that the company’s ready to take one step to level up. However, financially speaking, you need significant funds to fulfil that certain goal.

Not all businesses can afford to cover all the expenses of the said expansion project. And that’s when other businesses take business loans to support their financial needs. So the question is, where should they get a business loan?

In Singapore, Citibank leads when it comes to financial services. They provide loan products, including business loans, which can help you support your business’ expansion. Here, we’ll discuss details about what Citibank can help with business loans.

The Four Benefits Of Citibank Business Loan

Get extra funds

When you apply for a Business Loan, you can enjoy fast and easy access to cash. Instalment loans are one of the best options that Citi offers. You can withdraw it through a Citibank Ready Credit or Citibank Credit Card.

Citibank Business Loan Interest Rates

Interest Rates vary on the type of loan you will apply for. For example, getting a personal loan will give you a welcome offer of a 4.55% p.a. interest rate. However, the interest rates still vary depending on how long you want to pay back your loan. 

Remember that large institutions can blow up interest rates if you repay your loan for an extended time.

Convenient modes of payment

If you have an existing Citibank Credit Card, you can pay via FAST. These accounts are also qualified to receive payment from other participating banks and institutions. 

You can also access your other bank’s online platform via FAST. Instead of queuing to pay your bill, you pay it more conveniently. 

Get extra deals

You can get many deals when you apply for a loan. It is the strategy used by most banks. For example, Citi offers Grab Food vouchers for a certain cumulative loan amount. Check out the latest offers when you choose to apply for a loan.

Three Crucial Things You Must Do Before Getting a Citi Business Loan 

Everyone would want their businesses to grow and innovate. In this way, your business can stay relevant. 

A time will come when the company will need to expand to continue catering for the market’s needs. So here are some tips you might want to consider before getting a loan for your business.

Do ample research.

Consider all options when you look for a bank or an institution that will lend you money. For example, are you willing to pay hefty interest rates as long as the time for repayment is long? Then, you might as well check bigger banks and institutions for your choice of loan. 

Use the money wisely.

Getting a loan is not easy, though. You may want to maximize the loan by spending it on essential resources. For example, spend it to buy machines that can accommodate customers. Or you can use them to expand your business. 

Never use it to pay current expenses. Loans can run out if you do not spend them wisely.

Communicate with your business partners.

Make sure that your partners know every decision you make for the business. Getting a loan is a big step for your business. It could either make or break it. 

Inform your business partners about the pros and cons of getting a business loan. Everyone should agree that getting a business loan will help your business gradually. Discuss all the possible options available before getting a loan. By this, you can avoid any miscommunications. 

SME Financing Institutions in Singapore

Over 20 banks and financial institutions have SME loan product offerings.

Government financing schemes can be up to $1,000,000 with a maximum repayment period of up to five years. Note that the process of SME loan applications takes two to four weeks. 

Many financing institutions serve the SME Market. Some are Hong Leong Finance, Sing Investments, and other banks. These financial institutions are specialist lenders. They usually focus on equipment loans, which are categorized as asset-based lending. 

These financial institutions offer unsecured business-term loans with minimal interest rates. Interest rates range between 8-12% p.a. effective rate. For loans that involve revolving facilities, trade and factoring interest range between 6-9% effective rate. 

Interest rates vary between different banks and financial institutions. More often, interest rates are determined by the borrower’s credit profile. 

Documents needed for an SME financing application are slightly the same as the requirements required in banks. Some of the requirements include financial reports, bank statements, and the Director’s IC. 

Add to that is the Notice of Assessment and a brief write-up of the company’s information.

Is Citibank Business Loan worth considering?

Citibank Singapore started its business in 1902 and has represented almost every asset class. The bank is said to be Singapore’s most influential foreign banking employer.

Also, Citi Singapore is the home to Innovation Labs and the Asia Pacific Citi Service Centre. Throughout the years, the bank gained trust for the quality of financial products and services it offered to Singaporeans.

Citi has a wide variety of loan products, from personal loans to variety of business loans. Let’s take a look at the latter one.

CitiBusiness Unsecured Business Loan Singapore

All loans from various bank institutions have their pros and cons. Citi has a couple of products and services with long-term financing options. Citi’s financing schemes are suited for small to large businesses. 

Citibank is recognized as the Best Bank in Singapore. Citi also offers various business loans with up to four years of repayment terms. Also, you can take advantage of their low interest rates. It made them the most competitive banks in the business. 

CitiBusiness Unsecured Business Loan can finance from $50,000 with interest rates falling between 6.25% to 15%. But note that Citibank will require you to have a $750,000 annual turnover. You must also present your Bank Statement for the past six months. 

Citibank business loans might be the one that suits your needs. Yet, there are things you need to be mindful of about CitiBusiness. 

Citibank has a high set of standards regarding business loan approval. Thus, applicants must have excellent credit scores.

Another thing is that Citibank doesn’t offer the loan for business start-ups or new small businesses. That said, it makes borrower qualifications hard to meet.

Talking about such business loan products, Citibank surpassed other entities with its financial services. As a result, the company became the top pick for the best business loan in the country.

Citibank Business Loan’s minimum and maximum loan amount  

When you get a CitiBusiness Unsecured Business Loan, you can borrow at least $250,000 up to $350,000. 

If your annual income is S$120,000, you can borrow up to 8X your monthly income. Please note that this is also subject to the bank’s approval. Interest rates can also vary for each type of loan you apply to.

Other banks also have a wide range of loan options with flexible amounts to be borrowed. For example, CIMB, HSBC, Maybank and Standard Chartered can offer a maximum amount of S$ 1,000,000- 5,000,000. However, businesses must be registered and located in Singapore. 

Loan tenure is up to five years from approval. The amount to be borrowed still varies and is subject to the approval of the bank. 

If you do not need an enormous amount, OCBC and UOB offer business loans perfect for starting entrepreneurs. Businesses must be registered for at least six months and can borrow up to $100,000. Loan tenure is up to 3-4 years. 

Different payment terms when you get a Business Loan

When you get approved for a loan in Citibank, you have a couple of options when it comes to payment terms. One of the options is to choose a loan tenure of up to seven years

By selecting the seven-year loan term, you can enjoy lower monthly repayments. You can also calculate your monthly repayments with Citi’s business loan calculator on their website.

Yet, different banks offer different payment options. In addition, various business loans also have different tenure years. 

Do not be lured into longer years, as you may end up paying more than you borrowed. That is why you should take into consideration your choice of loan. 

Think about which loan will make you maximize your spending power. Longer terms of repayments can lead to long, awful years of debt.

Other Business Loan Options To Get in Singapore

As mentioned above, getting approved for a CitiBusiness Unsecured Business Loan won’t be easy. But there are still lots of options available in the market.

You can apply to licensed money lenders if you fail to meet Citibank’s qualifications. They offer various types of loans, including business loans. 

Moneylenders offer shorter repayment terms with interest rates, which I can say can compete in the market. To clarify, banks offer long-term loans, while moneylenders provide short-term loans. 

The existence of lending institutions helps those in dire need of money immediately. One advantage is that they do not have extra hidden charges.

But be careful of loan sharks, known as unlicensed moneylenders. If you want secured loan transactions, you can review the official list of licensed moneylenders in Singapore. 

All listed money lending entities abide by the Moneylenders Act. The Ministry of Law Singapore implemented such to regulate the finance industry. 

Choose a reliable money lending company. One you can consider is Cash Mart Singapore, which has been operating for more than 50 years! 

The company helped thousands of Singaporeans with instant cash loans. It could be either Business Loans or other low-interest personal loans

Business applications are fast, providing a smooth lending experience to borrowers! Visit Cash Mart Singapore now and discover more.