How to get your Business Loan approved in Singapore

Written by james tan. Posted in Business Loan in Singapore

Unfortunately, too many companies find that the growth of their business is hampered by a weak working capital position or a lack of cash flow. But, you can find a money lender Singapore who will give you a commercial loan or a business loan. Business loans in Singapore are typically offered by banks and other financial institutions. Whether you need a business loan or commercial loan, you can find a money lender Singapore. Each bank or financial institution offers different types of loans with different interest rates and different types of requirements in order to qualify.

Business Loan in Singapore

Money Lender Singapore

Many banks in Singapore offer unsecured business term loan, SME microloan, SME working capital loan or a trade financing loan. You can get financing for your company with no collateral required with an unsecured business term loan. Generally, these loans range from $30,000 to $40,000 per bank. You may even have up to 5 years to pay with installments.

An SME microloan is now an initiative by the Singapore government to ramp up productivity. With this loan, you can get up to $100,000. The SME working capital loan is another financing initiative by the Singapore government for getting money for your business. You can get up to $300,000 with a pro-rated interest with an SME working capital loan. Trade financing loans allow companies to buy material from their suppliers based on credit. With a letter of credit, you can purchase up to the bank’s limit.

Plus, you can invoice and receivables financing from a Singapore bank. This type of financing allows you to get up to 80% of the invoiced amount sooner. You won’t have to wait for the credit period.

Secure a property loan for money in Singapore. SME’s can put up their property for working capital to grow their business in Singapore. The interest rates for this type of loan are generally low. Lastly, you can also secure equipment financing from a bank in Singapore. Purchase or lease equipment with this type of financing. It helps unlock cash flow to keep the business running and expanding.

How to Find Business Loan Singapore

All you have to do to find business financing in Singapore is to go online. Almost 20 banks and financial institutions offer business loans in Singapore. Go to a web comparison site to compare the different types of loans, rates and various criteria offered by banks in Singapore. Many of these sites offer a free online loan assessment tool so that you can compare all of the offered business loans quickly.

Once you have this information, you can easily make an informed decision on which bank and loan best fit your individual needs. Many banks in Singapore have strong branding and sturdy balance sheets, which is a good foundation for a business loan. Some of the best banks in Singapore for a business loan include DMS Bank, United Overseas Bank, and Overseas Chinese Banking Corporation.

Money Lenders and Business Loan Singapore

It’s important to note that banks have tough regulations when it comes to lending money to a new, small or growing business. Banks typically require high credit scores, low debt-to-income ratio, and high cash flow. This can tie your hands. A money lender doesn’t have all those restrictions to give loans. Generally, it’s much easy to get approval for a loan from a money lender rather than a bank. Plus, a money lender does not add extra fees like a bank. Money lenders are in business to only make loans, unlike banks.
Money lenders generally have terms from 1 month to up to 3 or 4 years. Interest rates range from 7% to 13%, and closing costs range from 2% to 5%. And it’s easy to find a money lender in Singapore. Just go online and do a search for licensed money lenders.

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