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Standard Chartered Business Loan: Is It Helpful?

Standard Chartered Bank Singapore Limited has been in the market for more than 150 years. The bank made history in the world’s most competitive markets, including Singapore. 

Standard Chartered has been part of an international banking group. The bank has this drive prosperity and commerce, which made it possible through its unique diversity. 

The brand promises heritage and values expressed at all times. Over 160 banking years in Singapore, SCBSL built an excellent reputation. 

They also obtained their Qualifying Full Bank (QFB) licence by October 1999. This licence is an endorsement of Standard Chartered’s time-honoured commitment to Singapore. 

Things to do before getting a Business Loan

Getting a business loan is something you should plan. Such involves big decisions that can make or break your life. 

Securing capital for your business needs to have the proper preparation. Here is everything you need to know about business financing. 

Create a business plan. 

It will give you an edge if you come to a financial entity with a business plan. It is a great way to convince the lender and prove that you’re credible in running a business. 

It’s one way for lenders to identify your business skills and knowledge in doing business. Your business plan should include your business goals. 

Include also your Enterprise’s Revenue expenses, your competitors, and your Market analysis.

Make a smart and a little witty introduction to the lender. Let them feel your confidence and bold determination to run your business. It will give lenders a great impression. 

The Significance of financial statements. 

Submit and present a copy of financial statements. It must contain your business’ past financial information. 

Showing projected numbers can also help. That way, lenders can see your progress towards your goals. Doing so will let them know that you can make enough income and will be able to repay the lent money. 

Ensure to include the following financial statements for the past few years:

  • Income statements, 
  • Cash flow statements, and 
  • Balance statements.

And also, take into account how you will use the money you are borrowing. Also, include all the seasonal changes in your business. 

State the purpose and amount of the loan. 

Before taking up a business loan, make calculations of how much money you’ll be needing. If you can state your goals, it will be easier to explain what you need from the bank or licenced moneylenders. 

Put in place your marketing strategy and identify what pieces of equipment you will need. Find the best prices for each piece of equipment you will use. 

You can show your research to the moneylenders if you have. That’ll make them see that you are serious about taking this opportunity. 

Be aware of your personal credit history. 

Before you apply for a business loan, take a look at your personal credit history. Your personal credit history will be necessary. It’s vital, especially if your business can still build a credit history of its own. 

Banks should know that they are lending money to someone responsible for paying it back. That makes it essential for you to build up your personal credit history before applying for a loan. 

Also, that includes personal bank statements and tax returns for the last year. 

Take note of the cost of having a loan. 

Be aware of how long you will be able to pay your loan. Banks may offer longer payment terms. They’ll think about the interest rate you will pay if you opt for longer payment terms. 

These interest rates also blow up the longer it takes for you to pay back your loan. You can always look for licenced moneylenders. They, too, offering flexible payment terms with low-interest rates. 

Take note of interest rates to estimate your payments. Include all this information in your financial statements. Also, know all the terms and conditions attached to each loan. 

Know your collateral capacity before getting a loan.

Some money lenders will need you to list some of your assets and collateral. 

It would help if you listed down all possible asset. That is to determine if you have collateral when paying back your loan. 

Search for every borrowing option. 

Instead of falling for large banks, try to look into different credit unions first. They can also give you a significant chance of getting approved. 

You may be able to adjust your plans and have a lot of options, unlike large institutions.

Choosing Standard Chartered Business Instalment Loan to Support Your Enterprise

Standard Chartered Bank offers various types of financial services. That includes business loans in Singapore. 

Among all banks, Standard Chartered is one you can trust. Here’s what you need to know more about Standard Chartered Business Loan Singapore.

Features of Standard Chartered Business Instalment Loan

Standard Chartered Business Loan Amount

Help grow your Enterprise with Standard Chartered Business Loan. You can get and secure a loan from S$70,000 up to S$300,000. 

There’s no collateral needed when taking up a loan. But note that the loan amount approved will only be under the bank’s sole discretion. 

Business Instalment Loan Tenure

Choose your preferred repayment period ranging from 12 to 36 months. As mentioned, there’s no need for collateral. But note that the repayment period is subject to the bank’s sole discretion. 

Business Instalment Loan Interest Rates

The interest rate varies depending on how long you will pay back your loan. Standard Chartered has competitive rates, starting at 3.48% per annum. 

You’ll get further details about the loan upon visiting the bank. Make sure to read the terms and conditions before signing an agreement.

Business Instalment Loan Repayment Plans

The bank will not need you to provide business financial statements. All you need is your company’s GST statements from the last four quarters. 

Also, provide Operating Bank statements from the previous six months. 

Standard Chartered Business Loan’s Eligibility

Any business can apply, from minor to medium enterprises. It could either Sole Proprietors, Partnerships or Private Limited Companies.

Note that it should be a Singapore-registered business. Besides that, Singaporeans or Permanent Residents hold ownership of the company. Owners should have at least 50% of shareholdings. 

The company must be operating for at least three years with at least S$750,000 turnover. 

Standard Chartered Business Loan Application Process

You can visit the SCBSL website to access the business loan application. 

Go to Business Banking, and look for the “Business Loans & Working Capital” button. Click it and proceed to “Business Instalment Loan.”

Once you’re on its product page, click the “Apply Now” button. Provide all needed information, and you’re on your way to getting your Business Loan. 

Standard Chartered Business Instalment Loan Charges and Other Fees

Get at least S$70,000 up to S$300,000 of loan but note that there are some fees the bank might charge you. Fees and other charges may include the following:

  • Annual Fee: at least S$400 up to 2.00% of the approved loan amount. In the following years, it’ll cost S$100 per year.
  • Default Fee: It’s a charge for overdue instalments, costing S$100. 

But note that a Board Rate of 10% p.a. adds on all your delinquent instalments until your loan’s maturity date. 

  • Board Rate Business Instalment Loan (BIL): 9% per annum 
  • Interest Rate: The Effective Interest Rate for each loan varies up to BIL Board Rate plus a 2% per annum ( at 11% p.a.). 
  • Special Requests (post loan disbursement): Costing S$250.
  • Prepayment Fee (partial payment): 3% per annum added to the loan sum. Be sure to inform the bank before one month via written notice. 
  • Redemption Fee (full repayment): 5% interest added to your outstanding loan. 

It varies if you redeem the loan amount within the first 12 months from your loan’s disbursement. 

Standard Chartered Business Loan Requirements

Prepare the Standard Chartered Business Loan documents required to submit. That includes the following:

  • A Photocopy of Sole Proprietors Identity Cards or Passports. 
  • A Photocopy of your IDs (under partnership/private limited companies)
  • Copy of company’s Goods and Services Tax statements for the previous four quarters
  • Submit the company’s current operating bank account for the last six months
  • An accomplished Business Instalment Loan Application form
  • A copy of the Sole Proprietors’ / Partners’ Income Tax Notice of Assessment
  • A copy of the Board of Directors’ resolution
  • A copy of Company Constitutional Documents (Memorandum and Articles of Association)
  • Submit a Professional Certificate (only if applicable)
  • Any papers related to the establishment of entity, identity and address proof documents

Conclusion

Before deciding on which loan to take, you should be cautious in getting loans. Interest rates vary and can add in an instant. You might as well think and study about it. 

Many fees may add up if you choose to loan from larger institutions. But there are some options to that. You can always research licensed money lenders and their payment schemes. 

Moneylenders are financial entities under the Ministry of Law Singapore’s regulation. Such institutions offer various short term instant cash loans. 

Plus, they offer a more comprehensive payment scheme with low interest rates. That will maximise your spending power. 

High-interest rates do not mean that you will pay more. In the long run, you will be able to save more money than going for lower interest rates to be paid for a very long period. 

It will be less burden if you choose a shorter repayment plan. In a short period, you will be free from debt and loans. Always consider all options, as having a loan is a significant decision to make.