Business loans are cash loan given to companies to be used solely for business purposes only. And online, one can get some really fast business loans. This online application process takes only 8 minutes, and one can get their payments sent to them in only 24 hours. While these are fast enough to be done in only a day, banks take on average 2 to 3 entire weeks. Sometimes if a particular case is considered to be a little too complicated, it could take even four weeks.
One could choose some of the best SME loans in Singapore tailored for different situations too. These loans are specifically designed to be as convenient as possible to the business owner. So they can deal with it easily and make their repayments in time. With these convenient options, they can maximise their business potential and use it to grow their businesses. The qualifications of these business loans are also quite easily filled by most businesses owners. These are:
- The interested business owner’s company should be a Private Limited Company that is registered with the ACRA. This proves that the company is authentic and that the business loan money is used properly for the company for business purposes.
- This company should have at least one Singaporean director. And they could be a Singaporean, a permanent resident of Singapore, or a foreigner residing in Singapore.
- The minimal annual revenue of the company should be at least $100,000.
- The company should have a minimum operating time of at least ten months in the industry.
There is a wide variety of business loans available, coming as high as $300,000 or as low as only $5,000. One can choose from a variety of these loans these diverse options as different loans are for different situations. To have even more different high amount loans become available for them to choose from, one could try to improve their creditworthiness. One can try this by keeping a decent credit score. One can get bigger loans with higher credit scores and higher annual revenue. However, one can still get some loans even with a low or clear credit score. But having a better credit score allows one to choose more options and better options.
After making sure one qualifies for a business loan, one needs their application for the loan to be processed and approved. With the successful approval of one’s business loan, one can get their loan money as soon as 24 hours. There are a lot of important things one should make sure of to be successful in their loan applications. And these are:
- Choosing The Best Money Lenders:
Usually, one would think that choosing a bank to borrow a loan would be the best for one’s business. This is because one would think of banks as the most reliable and trustworthy financial institutions. And that banks are more secure and more efficient at this. But if one explores more options, they will realize that there are several financial institutions out there who can provide better deals and are much faster, more reliable and trustworthy.
- Read And Understand The Fine Print:
One must read and acknowledge what is entailed in the fine print of a loan contract. Checking this fine print is important as one may be misled by the advertised deals. This could mean more interest rates than one initially thought, or maybe more down payments. It also may mention whether or not one may make their repayments early before the deadline. Sometimes, if one doesn’t check this, one might have to pay a small fee to make these repayments earlier. Going through these small details are important, and one can save or lose several thousand over it.
- Be Completely Honest And Transparent :
One should be completely honest about what they’re going to use their loan application money for. There are laws that both the lender and the business owner has to abide by as these financial institutions are very strict. The business owner should be transparent with what they are going to do with the money. The lenders would also give suggestions and advice on what one can do in their situation. And while this is also going to show up on their credit history, it is the better one to be completely honest with it.
- Review The Interest Rates:
There are varying financial institutions and banks in Singapore, making them have varying interest rates on loans. So one should know how to compute these interest rates so that one knows how much they should pay them back. This way, one can judge their capacity to pay back the loan on time, with interest efficiently.
- Learn About The Repayment Rates:
The repayment is another factor to know about when making a decision to take out a business’s loan. Just knowing about the interest rates is not enough. One also needs to know about this. One should make sure that their business has the capability to pay back the loan taken out. And with necessary interest.