The In-Depth Guide to Getting a Business Loan in Singapore

Business loans are especially created to help in businesses’ various needs. Good cash flow grows businesses and keeps it thriving. But there are times when there is a sudden need for more working capital. Fortunately, licensed money lenders can lend money for your small business.

Small business loans are for Singapore-based businesses operating for the past two years.

At least 30% of shareholdings belong to a Singaporean or a Singapore PR. The minimum turnover should be S$200,000.

Of course, you have to submit the needed documents such as Photocopies of Sole Proprietors or Partners’ passports, Company’s bank current account statements, Company’s financial statement for the last year, and Income Tax Notice of Assessment.

Small business owners get a business loan for different reasons. Everyone wants to drive his or her business ahead of the competition. But lack of funds will slow the business growth. Here are the specific reasons entrepreneurs get a loan for their small business.

Expand Operations

There is no place but to go up for a thriving business. If you need to expand your office, then you need funds to buy a bigger place. Otherwise, you will need a loan to renovate your office.

Purchase Equipment

Need to speed up your production? Then it is time to buy new equipment. Your new equipment can be tax-deductible for the first year. If you take care of it and it is huge machinery, you can use it as collateral for future bank loans.

Replenish or Buy Extra Inventory
Need to buy products for the upcoming season? Don’t let your clients think that you are not prepared. Be sure that you have enough stocks of goods to make them happy.

Increase Working Capital
Working capital is a necessity to ensure quality operations each day. If the demand increases, then you need more working capital.

Build Credit for the Future
If you are aiming to increase your credit score, then it is time to get a business loan and pay it on time.

Grab a Good Business Opportunity
A new commercial space suddenly became available? Or perhaps new equipment went on sale? Don’t miss the chance. Use a business loan to grab the rear opportunity.

Add a Staff
Need more hands to meet the increasing demands? Get a business loan to hire more staff and grow your business.

Determine the purpose of your loan and the return of your investments. Can you handle the loan and will you be able to gain more returns after using it?

Interest rates are based on your company’s credit history. Lenders also consider the personal credit history of the business partners.

Study the interest rates, repayment terms and conditions before borrowing money.

Also, seek advice from your loan officer or consultant during the application process.

The best place to apply for a small business loan is from a licensed money lender. They have lower rates since they.

Getting a business loan in Singapore may need a strict application process. It is because they offer longer payment terms than personal loans. They also ask for fewer documents since the small business loan does not require a collateral.

If you are applying for a small business loan from a licensed moneylender, you will get shorter repayment terms from a few weeks to a couple of months.

Does your small business need immediate funds? The unsecured business loan can provide quick cash. If you use the cash and get returns in a short time, then this type of loan is perfect for you.

Getting a small business loan from Cash Mart is easy.

Simply sign up online to make an appointment. You will get a call to confirm your appointment.

Then bring your requirements to the Balestier office and get verified.

Licensed money lenders will review the financial performance of your company for the past two years. The lender will assess the borrower’s capabilities to pay for the loan based on the documents provided.

If you get approved, you can get your loan immediately.

Small business loans are provided to small businesses. If you have ten or fewer employees, you may qualify for the loan. One scheme for small business loans is the SME Micro Loan.

SME Micro Loan may have lesser requirements. This, in turn, helps a small company to secure funds easily.

Interest rates vary between lending institutions. You may call or visit the website to inquire about the interest rate. Also, ask for the fine print in the loan application.

Figure out if the interest rates are fixed or variable. A fixed-rate remains constant during the loan period.

Variable-rate differs according to the fluctuation of the general annual percentage rate. The risk about it is that it is low at first but can double or triple later.