It is not easy to run a business in today’s competitive environment. There are over 666,175 businesses operating in Singapore according to a report by the World Bank. While it is a huge number, the sad fact remains that not all these businesses are successful and many have or will shut down in the future. And the reason behind this is the rising costs of running a business. But, an SME business loan or microloans may take you out from this situation.
In fact, according to reports, about 90% of all startups fail within the first five years. There are many reasons of falling into this situation. But a lack of finance is one of the major reasons.
If you want your business to succeed, you must be able to manage your finances. In such a scenario, bank loans may take too long to process and since time is vital, it may affect your business. Alternatively, you could look for a licensed moneylender that provides financial help in the form of business loans for a shorter processing time. Which would you choose?
What is a Business Loan?
As the name suggests, a business loan is a loan applied and granted to be used for the purpose of running or maintaining a business.
It’s a fixed amount of loan borrowed at a pre-decided rate (interest) and is to be paid back with the interest within the specified time period.
Unlike some other types of loans, an SME business loan from moneylenders are generally unsecured, i.e: there is no collateral or guarantee against them. They are provided on the basis of factors such as your business history, repayment capacity, earning level, etc.
A business term loan in Singapore can be of various types, usually intended for different purposes. Some of the most popular business loans include:
- Cash advances
- Mortgage loans
- Equipment lease loans
- Equipment purchase loans
These different options are designed to support different aspects of the business. For example, equipment purchase loans can be a good choice if you wish to buy new equipment. This means you do not have to suffer from a burden any more.
Speak to our experienced staff if you have difficulty in understanding the type of loan you should go for. We are a licensed moneylender and offer some of the most affordable and best business loans in Singapore.
Why and When Should I Apply for a Business Loan in Singapore?
An SME business loan in Singapore are largely in demand not only by small businesses but by big organizations as well. Our simple processes and friendly team members make it easy to get a business term loan in Singapore.
However, as a borrower, you should be responsible and spend every single penny responsibly. This is important because, like any other loan, a small business loan in Singapore has to be returned as well.
If you are not financially good, you may not be able to pay back interest or premium on time, resulting in a default which will reflect very negatively on your credit report and may make it difficult for you to apply for a loan in the future.
It can, in fact, even cause issues for your business and lead to closure. Hence, it is important to be careful.
Here are some scenarios in which it may be wise to apply for a business loan:
- You need to expand your business and invest in more inventories or move to a bigger office.
- You have bills to pay.
- You have to pay salaries.
- You need to start a new business and you’re low on capital.
All in all, apply for a business loan only when you really need the money and you’re sure you’d be able to pay back the loan on time. Talk to us more about your loan requirements. Call 6635 1302.
What Do I Need to Qualify for a Business Loan in Singapore?
Technically speaking, an SME business loan is available to every registered business in Singapore. However, most government banks and organizations will decline loan requests as they have stringent requirements and conditions.
A better option is to turn to a private money lender like Cash Direct Pte Ltd. We offer a wide range of business loans and SME loans for easy qualification procedure.
Do not let all the requirements intimidate you; we’re here to help you throughout the process. The journey takes about a week and we’ll be with you throughout it to ensure there are no delays and you are on the same page as us regarding your loan application.
Business owners are eligible to take up a small business loan in Singapore between 10k- 300k. The right amount depends on your requirements and the size of your business. It is important that you talk to us about your loan requirements so we can help you with the process.
An SME microloan in Singapore is also an amazing option to take your business to the next level.
You will need the following documents to submit with the application or during the process:
- Your company’s BizFile
- Your company’s bank statements (last six months)
- A copy of the identity cards (front and back) of all directors and shareholders
- Financial reports (last two years)
- All directors and shareholders’ Notice of Assessment
- All directors and shareholders’ CBS report (can be bought from http://www.creditbureau.com.sg)
- Current month’s staff CPF contribution statement (if any)
- Tenancy agreement (if any)
You will have to personally visit our office at Vision Exchange, Jurong East, Singapore to submit the loan application with the required documents.
How Can I Get a Business Loan in Singapore?
The process usually takes about five to seven days. You will have to fill the form at the office. You can reach us at Vision Exchange. We are strategically located at Jurong East central, 2nd CBD area in Singapore.
Our professional and friendly loan officers will help you fill the application form and also answer any question you may have regarding the loan. Our money lenders may also ask you a few clearance questions at this stage.
The application is processed at the head office and is subject to approval. Most of our loans are approved but if there are any issues with your application, we’ll explain it to you so you can reapply.
Once approved, we’ll give you a call and fix a suitable time for you to visit our office and an SME loan in Singapore in terms of cash.
Why Should I Choose Cash Direct Pte Ltd for an SME Business Loan in Singapore?
Cash Direct Pte Ltd is among the most well-known business loan providers in Singapore. We are the first choice of many businesses due to our high approval rates, low-interest rates, and flexible repayment schemes.
We cater to not only SMEs and startups but big businesses as well. We are a licensed moneylender in Singapore, registered with the Ministry of Law, Singapore.You can also opt for an SME micro loan in Singapore.
Our interest rates are as low as 4% per month (48% per annum), making us one of the most affordable lenders in Singapore. Call 6635 1302 today to know more about business loans and get a cash loan in Singapore in less than a week.