How Licensed Money Lenders Aid You in Business Loan?
There are quite a few licensed money lenders in Singapore whom you may approach in case you wish to apply for a loan! Business loans like private business advances, credit extensions are rather easy to get; all you need to show is a running cash flow into your bank account. Though, at times business loans have stringent terms and conditions applied by the private creditors thereby, make sure to check the parameters thoroughly applying for a commercial loan.
Parameters to be considered before applying for a business loan
As a borrower, you must be very particular about a few terms as follows so that you do not end up paying a hefty amount or by any chance get uncomfortable after taking a loan;
- Low rate of interest
- Flexible payback terms
- Minimum documentation and processing time
- No supporting collateral
- Instant cash withdrawal option
Commercial loan types offered by a licensed money lender
Licensed money lenders in Singapore commonly offer the following business funding to businesses;
Letters of Credit
Generally, a letter is issued by a financial institution, bank or money lending firm to another bank (especially the one in a different nation) to function as a guarantee for payments or disbursements made to an identified person under stated conditions.
In case, you have travelled and trying to settle in another country while running a small business, this letter would be required by you for the application of a loan taken for business purposes.
This is an extension of a loan or working capital as you may consider it! Extended credit refers to the advanced money (or borrowed) for a longer period than what is usual or originally agreed upon.
In most cases, recognized lenders are specialists in personal financing or funding. This might include government lenders, contract organizations, to name a few. The conditions of the loan may vary from one lender to another. You need to review and look at several other crucial aspects of it. These loans include moneylender’s financing charge or rate of interest (hidden and disclosed charges- both). Also clauses like prepayment or post-payment penalty charges, etc. So, before you select a trusted licensed money lender in Singapore just make sure you go through and understand every clause before you apply for a commercial loan.
So, consult our financial advisor today to know more!