OCBC Business Loan Singapore Guidelines
Taking up a business loan isn’t that easy. Business people should focus on establishing their business first. When getting a business loan, banks look into several factors. That includes the borrower’s credit score, years of operation and annual revenue.
Banks do have different standards about business loans. But generally, the three factors mentioned are what are most likely they consider.
Do you wish to take up a business loan and use it to build up your enterprise? Take time to read and discover what things you should consider before deciding to get a loan.
Important Things A First-Timer Should Consider When Getting a Business Loan
Are you searching for business loans? That’s what people usually do. We tend to look for things first before having a final decision, and that’s one significant step to do.
If you have decided about getting a business loan, consider the following factors:
Always prepare for the process.
Do personal research about the process of getting a loan. Every financial institution has its own set of standards and policies. Review every bank’s or money lending entity’s standards of processing a business loan. Find which offers a quick car loan approval.
Don’t make a hasty-research to avoid false expectations. The more information you get, the more variety of choices you get. Thus, you can see the differences in every bank’s products and services. If you think you’ve searched enough, it’s time to look for which you believe you can get a high chance of approval.
Always check your credit score.
The Credit Score is one significant factor why a loan applicant gets rejected or approved.
What is it, anyway?
A credit score is a three-digit score earned from your credit history. Such history consists of your financial behavior, including the in and out of your cash flow. A borrower’s debt behaviour will also affect your score. Any delinquent records will also reflect on your credit history.
So here’s what you should bear in mind: the higher the score, the healthier the financial record you have. While the lower score you get, the lesser loan approval you receive.
The main factor that boosts up a credit score is how well you manage to pay your debts on time. That helps you build excellent creditworthiness. Banks will welcome you to take loans in the future.
Determining how much loan you need and can afford to repay over time.
You must specify how much funds you need to borrow. Why? Let’s take this one common mistake of taking up a loan.
You borrowed a certain amount of money, yet, it wasn’t enough. What’ll happen is you might get more funds to meet what you need to settle in your business operations.
With such a scenario, you have to pay two different loans with different interest rates and terms. It’s like digging up new holes instead of filling them up, clearing your financial pathways.
Better review everything that your business needs. Calculate how much funds you think would be enough to support your business.
Gather all the necessary documents for your loan application.
Gathering all the requirements is essential. It’s about organising all the needed documents so that you won’t miss anything.
Ensure that all information in documents is accurate. You know, bank loan officers are professionals. They have ways of knowing which information gets distorted or not. The more precise information you submit, the better.
If you’d ask me where will they use the documents? It will be their basis whether you are qualified for the business loan you applied for or not.
Things To Consider in Business Start-Ups
Business startups are the most challenging phase a business owner will face. It needs deep planning where you should realise all critical factors that will help grow your business.
Visualise your business’ goals.
Visualising goals will motivate you and help you find ways to reach that point. In that stage, you create a business plan. Know first your business’ nature, and identify the best product or service to offer in society.
Finding the perfect location.
Location matters! So you should look for the best spot for your business. Be sure to put up your business in a place that fits its nature.
Why? Well, take this one example.
You build up an all-meat shop in a place where vegans live. That won’t give you any profit because you sell meat where individuals don’t eat animal flesh.
If you are offering cleaning services, consider building up an office near big districts where busy individuals live. Professionals who are too busy working can’t make time to clean up their homes. Thus, a cleaning service business can provide help to them, optimising a work-life balance.
Know your customers.
Research the demographics of your potential customers. It would help you know how your potential prospects look for information. You can also see their behaviour towards product purchase online.
Determine your business legal structure.
There are different business structures: sole proprietorship, partnership, and limited liability company (LLC).
A sole proprietorship business is an entity owned by a single individual or a company. While in partnership, from the word itself, requires at least two owners.
Lastly, you can choose to build a company owned by at least two individuals, up to 200 shareholders.
Do the research and choose which of the three business structures you aim to have.
Consider funding your business startup.
Building funds through crowdfunding can help your business startups. It is like gathering small funds from people to build enough funds that can help your business operations.
It’ll be your resources where you can get access to when your business needs it. You can divide the funds into short-term or long-term purposes.
OCBC Business Loan in Singapore
Sometimes, businesses need extra funds to fuel up the company and help it grow. With OCBC, you can get choices that you think can help you and your business.
OCBC Business Loan Features
- Take up the loan amount you need. With OCBC, you get a wide range of loan options. You can get a loan from S$100,000 like OCBC Business First Loan, up to Business Venture Loans. You can take up S$5,000,000 from Business Venture Loans, which suits the high-growth companies.
- Enjoy the competitive interest rates. Interest starts from as low as 2.5% per annum (Temporary Bridging Loan)
- Offer flexible repayment terms. You can choose a repayment term depending on your budget and your business. The standard repayment terms in OCBC is five years.
- Choose OCBC as your bank partner. OCBC is a known and trusted bank here in Singapore. It’s where you’ll get the best banking experience, leaving you with peace of mind.
What do you need to do when applying for an OCBC Business Loan?
- You don’t need to leave your home to apply for a business loan in OCBC. Apply online and provide the required information. Submit how much loan amount you desire to borrow and your chosen repayment term.
- Do the application through MyInfo using your SingPass. Or, you can use MyInfo Business (for companies) using the CorpPass. Manual application is possible if the borrower wants to. But they need to submit a photocopy of their NRIC, a letter of consent, and a Notices of Assessment.
- Wait for the OCBC’s confirmation. They will reach you through your provided contact information within the day.
- Claim your funds once you get approved. You can get the loan proceeds in your nominated business account. It takes two to three weeks for full approval. It could sometimes take a little longer.
- Factors that could take it long will either be your income profile or your credit history. So if you’re planning to take an OCBC Business Loan, be sure that you meet the annual income requirement. Also, you have earned a good standing on your credit history.
What makes you eligible for OCBC Business Term Loans?
For you to get an OCBC Business Term Loan, your business registration should be locally incorporated for at least two years. Secondly, the owner of the entity should be 30% Singaporean or Singapore Permanent Resident.
As per the Terms and Conditions of OCBC Business Term Loans, you need to have a qualified guarantor. He or she must be 21 to 65 years old, earning S$30,000 of annual income.
What is the OCBC Business Loan Application Process?
Assess yourself if you’re able to meet the eligibility requirements of OCBC. If you think you’re qualified, you can proceed to a business loan application.
Step 1: Apply online. There’s no need to leave your home. It’ll only take you minutes to make the application.
Step 2: Verify all the information you provided. Experience the quick loan process with MyInfo and get approved within the day.
Step 3: Get your loan proceeds through your nominated bank account.
OCBC Business Loan Interest Rates
Interest rates of OCBC Business Loans will depend on what type of loan you take along with the risk involved. But generally, loans get calculated monthly.
OCBC Business Loan Penalty Charges
Generally, there will be a processing fee and penalties for missed loan payments or early repayments. There are no hidden charges other than that.
Business loans are what business people get when they need extra funds to help boost the company. Some use it for expansions. Some use it to support operations. It depends on what the business needs.
However, one drawback here is that when you aren’t qualified to get a business loan due to income stability or poor credit history. But that doesn’t mean you can’t find any loans to help you out.
Licensed moneylenders are also part of the financial industry, providing financial assistance without asking for any collateral. Another great thing is they offer low-interest personal loans.
One of the trusted lenders in Singapore is Cash Mart. They don’t limit their services to personal loans. They, too, offer a short-term business loan that can help business owners bridge their financial needs.
You can apply to Cash Mart’s online loans services. You can do the application in just a few minutes.
If you didn’t meet the eligibility requirements, getting a business loan from Cash Mart is one best alternative to do.